In June of 2004, Mark Cuban, sold his stake in the website www.mamma.com. Cuban owned 6.3 percent of the website, but sold it all after a conversation with the chief executive of the company. The Security and Exchange Commission claims that the information that he was told led to Cuban selling his stake in the company. The issue is if the information that was given to him was truly "inside" information. This case is still in the early stages, and very little details have been given to the public. In my opinion he should have never sold his share of the website, even if he did know that the website was not going to do so well. Cuban has made over a billion dollars as a tech entrepreneur, and should know the laws about insider trading. Even if he did end up losing money with his investment into mamma.com, he can afford it. This was a stupid mistake that can end up sending him to jail for over a year. This case has been compared to the Martha Stewart case, which as we know didn't end very well for her. Also, Cuban has been trying to purchase the Chicago Cubs for some time now and the MLB will probably not allow Cuban to purchase the Cubs, even if the Chicago Tribune sold the team to him. This was a stupid mistake for Cuban that he will have to pay for one way or another.
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