Parsad Posted May 25, 2009 Share Posted May 25, 2009 Mark Cuban's SEC investigation for insider trading is coming to a head, and he has five professors who support his stance. But the comment from one of these professors in this Globe & Mail article is mind-boggling to say the least! One of them, Alan Bromberg of Southern Methodist University in Dallas, said he researched the case after being contacted by Mr. Cuban's lawyer, Ralph Ferrara, and came to the conclusion that the SEC has gone too far. "It's like if somebody from company X called you and mentioned there's about to be an acquisition at a very attractive price but asked you not to tell anybody," Mr. Bromberg said. "You might say, 'Well, sure, I never spill information I get from prospects or contacts,' or you might say, just as a courtesy, 'I'll keep this information confidential.' Does that make you an insider? We don't think so." Insane! Cheers! Link to comment Share on other sites More sharing options...
Zorrofan Posted May 26, 2009 Share Posted May 26, 2009 Mark Cuban's SEC investigation for insider trading is coming to a head, and he has five professors who support his stance. But the comment from one of these professors in this Globe & Mail article is mind-boggling to say the least! One of them, Alan Bromberg of Southern Methodist University in Dallas, said he researched the case after being contacted by Mr. Cuban's lawyer, Ralph Ferrara, and came to the conclusion that the SEC has gone too far. "It's like if somebody from company X called you and mentioned there's about to be an acquisition at a very attractive price but asked you not to tell anybody," Mr. Bromberg said. "You might say, 'Well, sure, I never spill information I get from prospects or contacts,' or you might say, just as a courtesy, 'I'll keep this information confidential.' Does that make you an insider? We don't think so." It may or may not make you an insider, but at the very least it makes you privy to insider information. Didn't Martha Stewart do some jail time for that? I am getting old but it dosen't make sense to me...... cheers Zorro Link to comment Share on other sites More sharing options...
Parsad Posted May 26, 2009 Author Share Posted May 26, 2009 Yeah, the same thing happened to Martha Stewart, except it was an officer of the company who told her the information. In Cuban's case, I believe it was an employee, but not one of the officers. It's still non-public information that he traded on. Cheers! Link to comment Share on other sites More sharing options...
Matson125 Posted May 26, 2009 Share Posted May 26, 2009 Personally I like Cuban and how is seems to be "one of the guys" maybe it's an act who knows. The timing on all this is suspect. Cuban opens sharesleuth.com, where he openly shorts stocks that he feels are frauds. Then after some success he was in the early stages of opening a website which focuses on the TARP money and how it's being spent, obviously looking for way it would be "mis-spent". Talk about throwing stones when you live in a glass house! Cheers Michael Link to comment Share on other sites More sharing options...
ubuy2wron Posted May 26, 2009 Share Posted May 26, 2009 Martha Stewart went to jail for lying under oath, not for insider trading. She was never convicted of any securities laws. She was interviewed by law enforcement officers regarding her trading in Imclone she did not tell the truth it may have been to protect herself or her broker we just do not know. Link to comment Share on other sites More sharing options...
Parsad Posted May 26, 2009 Author Share Posted May 26, 2009 That's right ubuy2wron, I forgot! Cheers! Link to comment Share on other sites More sharing options...
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