When the SEC sued Mark Cuban for insider trading in shares of Mamma.com, the case was unique from the beginning. First of all, Cuban didn't settle instantly and paid a small fine without admitting or denying guilt -- something that seems to be a rarity these days. He even blogged about the charges.
Now, the feisty Mavericks owner has taken the unusual step of suing the SEC for denying him proper access to documents that detail the SEC's allegations and evidence against him.
The lawsuit, filed in U.S. District Court in Washington, accuses the commission of improperly rejecting requests to access some evidence, being too slow to respond to some requests, and not trying hard enough to find all the documentation Cuban's attorneys requested.
It's incredibly rare that the SEC loses a case -- and almost as rare that the commission actually has to prove its case before a court because in most cases settlements come long before it gets that far. But this case has looked pretty weak from the beginning.
When the SEC first announced the charges, Gary Weiss wrote that he was "underwhelmed" by the SEC's evidence, which appears to hinge on the testimony of one guy about a phone conversation he says he had. Joe Nocera really nailed it when he wrote this: "Now then - don't you sleep better at night knowing the feds are bringing rich guys like Mark Cuban to heel? No? Neither do I. In fact, if the case illustrates anything, it is how far the Securities and Exchange Commission has descended into irrelevance since Christopher Cox became chairman. That has become even more obvious since the financial crisis broke."
There's so much actual securities fraud out there that it's a shame the SEC is wasting its time with something as irrelevant as Mark Cuban's alleged effort to avoid a $750,000 loss (which really would have been much lower than that once you factor in the capital gains he most likely had to offset it against and his tax bracket).
And if that doesn't scare you, think of this: While the SEC was spending two years building its case against Mark Cuban, it was literally ignoring a dossier of evidence against Bernie Madoff.
When the SEC first announced the charges, Gary Weiss wrote that he was "underwhelmed" by the SEC's evidence, which appears to hinge on the testimony of one guy about a phone conversation he says he had. Joe Nocera really nailed it when he wrote this: "Now then - don't you sleep better at night knowing the feds are bringing rich guys like Mark Cuban to heel? No? Neither do I. In fact, if the case illustrates anything, it is how far the Securities and Exchange Commission has descended into irrelevance since Christopher Cox became chairman. That has become even more obvious since the financial crisis broke."
There's so much actual securities fraud out there that it's a shame the SEC is wasting its time with something as irrelevant as Mark Cuban's alleged effort to avoid a $750,000 loss (which really would have been much lower than that once you factor in the capital gains he most likely had to offset it against and his tax bracket).
And if that doesn't scare you, think of this: While the SEC was spending two years building its case against Mark Cuban, it was literally ignoring a dossier of evidence against Bernie Madoff.
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Reader Comments (Page 1 of 1)
5-29-2009 @ 12:00PM
MBM said...
I completely agree and support Mr. Cuban in his efforts. May God bless him in his endeavors!
5-29-2009 @ 12:34PM
whitey08 said...
Cuban is a spoiled punk.
5-29-2009 @ 2:07PM
Mike Sanders said...
Is this the son of Bob Cuban? Bob Cuban's Brass used to play on the Admiral riverboat, in St. Louis. There doesn't seem to be any mention of whether this is Bob's son.
5-29-2009 @ 2:31PM
DUKE said...
GO GET EM MARK. THE SEC HAS NO IDEA WHAT IT IS DOING. MADOFF RIGHT IN FRONT OF THEM, MADE A FOOL OF THEM. THEIR BIGGEST DEAL IN YEARS WAS MARTHA STEWART. WHAT A BUNCH OF BABOONS.
5-29-2009 @ 10:43PM
Yon said...
Government, by definition, is inept. None of its constituents can get a normal job. That is why they are there.
5-29-2009 @ 11:37PM
warnlm said...
Cuban is nothing more than a rich empty chair.
5-29-2009 @ 11:44PM
steelguy425 said...
For those of you who think Mark Cuban is a punk, your wrong. Mark Cuban made his money the old fashioned way, he earned it. When he was in college playing rugby on the Indiana University rugby team, he had to scrap for beer money and work odd jobs just like the rest of us. He is a hard working kid from a blue collar Pittsburgh PA upbringing whom I am proud to have had as a Rugby teammate. He would block and take hits so the team could score and he didn't have the ego the media makes him out to have. He is one hell of a good guy and I want my own son to look up to him. If Mark Cuban is suing the SEC, my guess is he is right.
5-30-2009 @ 7:59AM
RAY said...
NOTHING HAS CHANGED THE GOVERNMENT AND ITS HAND PICKED CRONIES HAS ALWAYS PICKED ON THE LITTLE GUY WHILE PEOPLE LIKE MADEOFF STOLE WHAT HE WANTED RIGHT IN FRONT OF THEIR EYES .
EVEN WITH VALID INFORMATION GIVEN TO THEM ABOUT THE OLDEST SCHEME IN THE BOOKS THEY DID NOTHING.
IT MAKES YOU WONDER HOW MUCH THEY REALLY KNEW AND TURNED A BLIND EYE TOO GIVEN HE USE TO BE THEIR LEADER.BOTTOM LINE THE GOV FROM TOP TO BOTTOM IS CORRUPT JUST TO MUCH MONEY TO KEEP THEM HONEST GREED RULES!!!!!!!!!!
5-30-2009 @ 9:58AM
Connie said...
If Cuban doesn't win this one, EVERY AMERICAN needs to be scared. If he doesn't win, that means that any government office can bring whatever charges they want against you at anytime and NEVER have to show you the evidence they have against you that allows them to bring those charges! Now that's scary!!!
5-30-2009 @ 12:02PM
C Johnson said...
Though I am not a fan of Mark Cuban .... I wish him well in his suit !
5-30-2009 @ 1:12PM
duke said...
NOW OUR GOVERNMENT WILL RUN GENERAL MOTORS. EXPECT GM CARS TO HAVE ONE GEAR FORWARD AND 5 SPEEDS IN REVERSE.
5-30-2009 @ 1:12PM
sgentilejr said...
The SEC has to learn the basics about law and charges and slander. All of our laws are based upon a "PROVE IT" rational.
The SEC needs solid proof "before" they open their mouths and accuse anyone of anything and they should not say one word until they first file charges in court, instead of trying their cases in the media.
5-30-2009 @ 1:34PM
David Vincent said...
All this was and is - is slight of hand by the SEC keep your eye on the Mark Cuban ball while we hide the Madeoff ball -- now guess which shell we hid the crook under....sorry you loose Mr Cuban and you get to pay the fine and we don't have to tell you why! We are a government agency and we are not a crook... are not are not.... are not...... and you can't prove it
5-30-2009 @ 1:44PM
oscar1930 said...
i lived in dallas for a while and i can tell you that cuban is a real punk. he has a lot of money and flaunts it every time he can. he owns the maveracks but he will not let the coach do his job. i am so glad he did not get a chance to buy the cubs. i am a long time cubs fan and had he succeeded in buying them i would drop them like a hot potato. he has money and he knows it. he should just sit back and enjoy it on the side lines. i hope the sec nails him.