Ouch. 750k is a drop in the bucket, unless you're a working stiff who bought stock that Cuban was selling fraudulently. Smoody's comment hit me like a punch in the face.

Regardless of whether Cuban knew the upcoming PIPE was confidential, nothing about his sale of the stock was `fraudulent.' The investors who bought the shares from him were going to buy the stock anyway; Cuban did not make any false representations or inducements to convince them to buy his stock. In fact, it is pretty hard to argue that his trade created any victims at all, since the buyers would have been paying a higher price for the shares, and hence lost more money, if Cuban _hadn't_ been selling, since his quick exit pushed down the price.

Cuban's sale of stock added correct information to the markets. As an outside investor, Cuban had no duty of trust to the other investors, unlike the CEO, who violated his fiduciary duty by disclosing confidential information to an outside investor without a written non-disclosure agreement.

It probably wasn't a single working stiff, or a working stiff in general. Sure, people lost money on the other side... and if he did what the SEC alleged, then he should go to jail.

But there are much bigger fish to fry here, but the SEC and CTFC have neither the means nor the competency to do something of value. Instead they go after this petty bullshit which seems to be politically motivated.

I agree with what you're saying, but it's good to be reminded of the reason why out-and-out insider trading is illegal; I'd obviously forgotten about the counterparty.