The SEC alleges Dallas Mavericks' owner Mark Cuban used confidential information on a stock sale to avoid losing more than $750,000. Cuban says the charges are "false" and has vowed to fight them tooth and nail.
Federal regulators say in 2004 Cuban purchased multiple shares of Mamma.com -- a search engine. He became the company's largest known shareholder, owning 6.3% of the stock. The Feds say he received information that the stock would be sold below market costs, so he ordered his broker to dump the stock, effectively avoiding a loss of nearly $1 million.
If this sounds familiar, it is. In 2002, Martha Stewart was accused of making a similar stock deal. She served time in a Federal prison for her offense.
In a statement released today, Cuban said, "I am disappointed that the (SEC) chose to bring this case based upon its enforcement staff's win-at-any-cost ambitions. The staff's process was result-oriented, facts be damned. The government's claims are false and they will be proven to be so."
According to Forbes magazine, Cuban is one of the richest people in the world, with a net worth of $2.3 billion. Besides the Mavericks, he owns Landmark Theaters, HDNet and is rumored to be in negotiations to buy the Chicago Cubs.