Free Mark Cuban!
November 18th, 2008 by admin

The United States economy is in free fall. Millions of Americans are losing their homes through foreclosure. Even more Americans find themselves owing more on their home than it is worth. Americans have lost millions of dollars in their retirement and pension accounts. There are allegations that some major corporations have perpetrated massive fraud in the sub-prime mortgage market. In this environment the Securities and Exchange Commission (SEC) in its infinite wisdom has charged, Mark Cuban with insider stock trading which netted him $750,000.
Cuban is No Angel
Cuban the flamboyant owner of the NBA’s Dallas Maverick , has denied any wrongdoing and believes that the SEC enforcement staff was determined to get him without regard to the facts. Cuban has transformed the Dallas Mavericks from a perennial NBA loser to one of the league’s most successful teams.
He is beloved by players and fans because he seems to be a devoted fan himself. He sits near the team at court side and often travels to away games with the team. He can be heard throughout arenas challenging what he be believes to be bad calls by officials. NBA commissioner, David Stern, has fined Cuban many times for the verbal attacks on officials.
Maybe McCain Was Correct
During his unsuccessful campaign for President, Senator John McCain once said that if he were to become President, he would fire SEC Chairman Christopher Cox. The media ridiculed McCain for this statement, because the President cannot fire the SEC chair. The Obama campaign used McCain’s attack on Cox as a further indication that the Arizona Senator was out of touch in understanding the American economy.
While it is too early to determine Cuban’s culpability in this matter, there are some facts that make this charge against Cuban a bit suspect. First, the insider trade that Cuban supposedly made happened in 2004. Second, the company, Mamma.Com that Cuban traded has a rather checkered history. In 2006, Mamma.Com settled a shareholder lawsuit for 3.5 million dollars regarding its ties to a shady stock promoter. Finally, there is a record of some inappropriate behavior by one of the SEC’s enforcement attorneys toward one of Cuban’s other business ventures. The attorney is now being reviewed for possible disciplinary action.
The SEC Majors in Minors
Whether Cuban did, what the SEC alleges is not the point of concern here. The question is why is the SEC involved in a case that is four years old for a relatively small amount of money involving a company with a questionable past? Given the nature of the current financial crisis, is this the best use of the SEC’s time and resources? New York Attorney General Cuomo has been out front investigating possible corporate wrongdoing involving billions of dollars. Where is the SEC on these major issues?
Category: Christopher Cox, John McCain, Mark Cuban, Securities and Exchange Commission | No Comments »































