Mark Cuban Tees Off on SEC After Insider-Trading Victory

Categories: Biz, Legal Battles

After five years of litigation and a three-week trial, it took a jury all of a couple of hours to decide that, contrary to the Securities and Exchange Commission, there was no evidence that Mark Cuban was guilty of insider trading.

Outside the courthouse, a newly vindicated Cuban briefed a gaggle of reporters, using the opportunity to blast the SEC for a solid six minutes.

"It's personal," Cuban says. "When you put someone on the stand and accuse them of being a liar, it's personal. When you take all these years of your life and try to prove a point, it's personal. And to try to play it off like this is just your job -- again, I don't want to say that's the way all the SEC works but the people that were in this case could have said something and they didn't say anything and that's just wrong."

Et cetera.

(h/t Frontburner)

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13 comments
bvckvs
bvckvs topcommenter

The facts of the case have not changed.  He did use insider information to sell off his stock and make a profit, and in doing so he cheated other investors out of a lot of money.

He just got lucky with a jury that was willing to give him a free pass for his criminal misconduct.

P1Gunter
P1Gunter

Those answers were greatness. I love Cubes, even if he didn't re-sign Tyson Chandler.

Myrna.Minkoff-Katz
Myrna.Minkoff-Katz topcommenter

Whether he did or whether he didn't, I've had the sense for a long time that boys and girls in the privileged strata always have insider information.  Poor Martha Stewart just pee-o'd the wrong people and got herself locked up for a year.  The rest of them get away with it.

animas
animas

Yes, Mr. Cuban the incompetent and arrogant DOJ, IRS, DOL, SEC (you name it) have been involved with quite a few witch hunts lately, mostly against middle class law abiding citizens who have far fewer resources than you do.  This is how these computer surfing six figure salaried govt employee  creeps gather their "stats" for advancement through the ranks or pay back those who (in their paranoid world) they believe "deserve" such treatment.

coleclaiborn
coleclaiborn

@bvckvs What are these "facts" you speak of?  I read a few articles about this and it seemed to me like the information he traded on was available publicly, BEFORE he traded.  Is this incorrect? Please share these damning "facts" you keep referencing with the rest of us that have been unable to glean them from the mass media.  I don't have an opinion on Mark Cuban, but from my perspective, he was the victim of a witch hunt. 

animas
animas

@bvckvs Or as is more usual, the SEC/DOJ-AUSA (following a period of one sided  highly inflamed defamitory public exoriation of  its "target") launched an inept prosecutorial effort based upon flimsy evidence which cost the taxpayers "a lot of money" and which a jury of Mr. Cuban's peers rejected .  The speed with which the jury rejected the prosecution's case suggests that it was not a substantial one. Let's give Mr. Cuban  the same benefit of the doubt.

everlastingphelps
everlastingphelps topcommenter

 @Myrna.Minkoff-Katz You're a fool to buy an individual stock without insider info.  Without insider info, you're just gambling, unless you put in as much time analyzing the stock as a mutual fund manager does.

Frankly, the whole insider information scheme is a mess.  We need to just accept that it's part of business, and let people playing the stock market risk it.  Fraud is still fraud, but knowing something that someone else doesn't know if just Playing the Stock Market.

bvckvs
bvckvs topcommenter

@coleclaiborn @bvckvs 

Yes, you're wrong.  The information he got came from a conference call between him and the guys running the dotcom.  Nobody else was privy to that phone call and he sold stock as a result of that phone call..

That was insider trading.

He got off because, like you, many jurors decided that, in spite of his insider trading, he was a good guy and probably didn't intend to anything wrong... even though the proof was right there in front of them.

.


bvckvs
bvckvs topcommenter

@animas @bvckvs 

Since the facts of the case are not in question, there's no doubt from which Cuban can benefit. 

He did indeed benefit from a sale of stock based on insider information.  The only question was if the jury would hold him accountable for that criminal misconduct. 

The jury decided that they would give him a free pass, without regard for the facts of the case.  

That happens a lot in Dallas.  In fact, our current DA made a name for himself at the beginning of his career solely on the basis of freeing one convict after another, whose convictions were based on bad jury decisions.

In a town lousy with racists and libertarians, bad jury decisions are all too frequent - especially as they usually favor white felons.

animas
animas

I also reject your premise that prior convictions overturned by the DA were due to "bad jury decisions".  I think it is more accurate to say that more sophisticated scientific evidence evolved  over several years to decades time--(DNA analysis)-- which would have prevented the trial of a blameless person --had that evidence been available originally.  The juries in Dallas County, in my experience, are very diverse.

animas
animas

Re:"The jury decided that they would give him a free pass". The Federal Govt litigated this case for FIVE years and could have settled it on multiple occasions.  Perhaps you might take the time to read the statements of the Jury foreman (an educated woman) former SEC employees and white collar defense attorneys familiar with this type of SEC litigation before you decide that the Govt's all too common inability to process this case (and others) in a manner appropriate to the level of infraction was due to Dallas being a "lousy" town favoring white felons.  The current DA, incidentally, only seems to like" white felons" who can advance his personal political agenda.  He may be a "racist" but I doubt that he is a "libertarian".

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