Almost four years ago, I wrote an article for AOL’s Daily Finance site about the Securities and Exchange Commission witch hunt against Mark Cuban.
The SEC filed insider trading charges against him in 2008 after he sold 600,000 shares of stock in Mamma.com. They said that he was insider trading because he sold his shares after receiving information that there was going to be another offering of stock by the company.
Mark Cuban didn’t ask for the information on the stock offering. It was provided to him because the company wanted him to invest more money. He didn’t want the information, and he knew that it would devalue the stock he already held. So Cuban declined and sold his stock. The stock then dropped in value, and in ran the SEC.