Former Dancing With the Stars contestant -- and billionaire -- Mark Cuban has been charged with insider trading. The Securities Exchange Commission claims that in 2004, Mamma.com Inc. told Cuban under private conditions that they were planning to raise money through a public offering and stock prices were about to fall.
To avoid a loss of more than $750,000, Cuban allegedly instructed his broker to sell all of his shares of the company. SEC Deputy Director Scott Friesad said, "As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential."
The SEC claims that unless he is subject to an injunction, Cuban, who owns the Dallas Mavericks, "is likely to commit such violations again in the future."
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