Spectators who watch Dallas Mavericks owner, Mark Cuban court side can see that he doesn't like to lose. But, regulators with the Securities and Exchange Commission say that Cuban didn't play fair when he stood to lose a lot of money. Cuban was charged with violating federal Insider Trading laws.
Regulators claim in 2004, Cuban used confidential information to avoid losing in excess of $750,000. In a civil lawsuit, filed today in Dallas, regulators claim the CEO of search engine company, Mamma.com, invited Cuban to get in on a coming private stock offering. According to court documents, Cuban got angry because he thought the offering would drop the price of the stock of which he was already a major shareholder.
Cuban, who denied the allegations in a statement on his blog today, claims the government has taken two years to build a case against him. Financial Advisor Ed Butowsky says cases like this are often complicated and time-consuming. "This has gray written all over it", says Butowsky who advises high dollar clients. "I just encourage everyone to wait and let both sides be heard and don't rush to judgement." Experts say Cuban is not likely to face jail time because the charges at this point are not criminal.