Mark Cuban was singled out for his role in Loose Change

[Smiley Gladhands]

http://dealbook.blogs.nytimes.com/2008/11/17/a-purported-war-of-words-between-cuban-and-the-sec/


A War of Words Between Cuban and the S.E.C.
November 17, 2008, 3:08 pm


Updated 3:29 p.m.: The Mark Cuban insider-trading case has just become very strange very quickly.

Hours after the Securities and Exchange Commission said that it was charging the voluble owner of the Dallas Mavericks with illegally trading on confidential information related to Mamma.com, a search engine company, Mr. Cuban fired off his own salvo. In a press release (and blog post), Mr. Cuban accused the S.E.C. of prosecutorial misconduct.

What did he mean, exactly? A person close to Mr. Cuban told DealBook that an S.E.C. employee had sent Mr. Cuban e-mails several times over the last year or so, accusing him of being unpatriotic. The bone of contention was Mr. Cuban’s involvement with “Loose Change,” a documentary that accuses the Bush administration of engineering the Sept. 11 terrorist attacks as a pretext for the Iraq war.

Read one of the purported e-mails — which copies Christopher Cox, the S.E.C. chairman, and was obtained from this person — after the jump.

In a statement, an S.E.C. spokesman told DealBook that the insider-trading investigation was run out of the commission’s Washington headquarters. Mr. Norris worked out of a regional office and had no role in or knowledge of the investigation. He was “referred for disciplinary action,” the spokesman said.

Furthermore, Mr. Cox did not correspond with Mr. Cuban and recused himself from the commission vote on whether to bring up charges.

From: Norris, Jeffrey B.
Sent: Saturday, May 05, 2007 2:27 PM
To: Mark Cuban
Cc: Cox, Christopher

Subject: RE: “Lose Change”

I AM SHARING THIS WITH CHAIRMAN COX. NEITHER HE NOR THE COMMISSION ENDORSE MY OPINIONS, BUT IN LIGHT OF YOUR THREAT, I THOUGHT SHOULD SEND THIS TO HIM.

Mark:

If this upsets you, I wonder how George Bush feels. I assume that Mr. Cox would view your involvement with “Loose Change” much as I do. After all, he served his country as a Republican Congressman from Orange County for nearly 20 years and was appointed by President Bush. If you feel like sharing my thoughts with Chairman Cox, be my guest.

Previously, I thought you were merely foolish and naïve. Now, however, I see that you are also a hypocrite. I guess your belief in free speech has severe limitations. If someone else is the victim of an absurd conspiracy theory, you defend your right to participate in smearing the good name of of a patriot like President Bush. But, when you are the subject of a parody of the attack you have endorsed, you suddenly issue threats.

I think I will e-mail this to Chairman Cox myself. I think he will enjoy it. I’m sure he is also a Laker fan.

Since Chairman Cox may not know the background, I will explain. Mark Cuban is the owner of the Dallas Mavericks and has participated in distributing the vicious and absurd documentary, “Loose Change,” which posits that President Bush planned the demolition of the World Trade Center as a pretext for going to war against Iraq. We have had some past exchanges about my opinion the Mr. Cuban’s support for this project is irresponsible and immoral. Below, I parodied his position that every opinion, no matter how absurd and vicious, deserves to be broadly disseminated.

 

[Anti Federalist]

What a surprise.

 

[Smiley Gladhands]

What a surprise.

Yeah, the only surprise here is that we're actually seeing some evidence that this was the case. I figured it would be an unconfirmed theory in my mind until the end of time, but it's good that this email has come to light quickly enough to justify my suspicions.

 

[theoakman]

loose change is the biggest POS film I've ever seen. A 4th grader has a better understanding of the scientific method and logic than these clowns. The government doesn't care about Loose change. If the government was content to murder 2000 civilians, they would be content to murder those 3 useless morons.

 

[lodge939]

loose change is the biggest POS film I've ever seen. A 4th grader has a better understanding of the scientific method and logic than these clowns. The government doesn't care about Loose change. If the government was content to murder 2000 civilians, they would be content to murder those 3 useless morons.

Word. It's always a conspiracy to some people though

 

[Smiley Gladhands]

loose change is the biggest POS film I've ever seen. A 4th grader has a better understanding of the scientific method and logic than these clowns. The government doesn't care about Loose change. If the government was content to murder 2000 civilians, they would be content to murder those 3 useless morons.

As I said in the other thread, the accuracy or effectiveness of "Loose Change" itself is trivial. The point is that between distributing Loose Change and creating bailoutsleuth, Cuban has been identified as a free-thinking dissenter who is encouraging free thinking and dissenting.

And obviously someone in the government cared enough about Loose Change to send Cuban this email.....so I'm not sure why you keep trivializing the connection between Cuban's quest for truth (in all forms) and his SEC charges.....especially after evidence is put right in front of your face.

Why do you think he was charged with insider trading? Because the government (and moreover, the SEC) is effective at its job? LOL! They only become effective when they feel threatened, IMO.

 

[sratiug]

As I said in the other thread, the accuracy or effectiveness of "Loose Change" itself is trivial. The point is that between distributing Loose Change and creating bailoutsleuth, Cuban has been identified as a free-thinking dissenter who is encouraging free thinking and dissenting.

And obviously someone in the government cared enough about Loose Change to send Cuban this email.....so I'm not sure why you keep trivializing the connection between Cuban's quest for truth (in all forms) and his SEC charges.....especially after evidence is put right in front of your face.

Why do you think he was charged with insider trading? Because the government (and moreover, the SEC) is effective at its job? LOL! They only become effective when they feel threatened, IMO.

+1000000000000

These retards need to STFU.

 

[Smiley Gladhands]

loose change is the biggest POS film I've ever seen. A 4th grader has a better understanding of the scientific method and logic than these clowns. The government doesn't care about Loose change. If the government was content to murder 2000 civilians, they would be content to murder those 3 useless morons.

Oh, and which 3 useless morons are you talking about? Billionaire Mark Cuban, SEC Chairman Cox, and Mister 'referred for disciplinary action' Jeffery Norris?

I think that would raise some red flags. It's a bit easier (and more deniable) to use regulatory structures to intimidate and discredit dissenters.

 

[theoakman]

I don't know why he was charged. My guess is, someone was reading his blog and figured out that he flat out admitted on his blog that he sold his stocks based on certain info. They put two and two together and figured out how they can rake in a quick million. It's a ransom play. Not a conspiracy to silence someone who cares about what the government does.

 

[WRellim]

As I said in the other thread, the accuracy or effectiveness of "Loose Change" itself is trivial. The point is that between distributing Loose Change and creating bailoutsleuth, Cuban has been identified as a free-thinking dissenter who is encouraging free thinking and dissenting.

And obviously someone in the government cared enough about Loose Change to send Cuban this email.....so I'm not sure why you keep trivializing the connection between Cuban's quest for truth (in all forms) and his SEC charges.....especially after evidence is put right in front of your face.

Why do you think he was charged with insider trading? Because the government (and moreover, the SEC) is effective at its job? LOL! They only become effective when they feel threatened, IMO.

Regardless, Cuban is obviously a good chess player.

 

[Smiley Gladhands]

I don't know why he was charged. My guess is, someone was reading his blog and figured out that he flat out admitted on his blog that he sold his stocks based on certain info. They put two and two together and figured out how they can rake in a quick million. It's a ransom play. Not a conspiracy to silence someone who cares about what the government does.

Well, I guess we'll have to agree to disagree.

I tend to view SEC actions in a very cynical light, and I think there's plenty of justification for doing so. The SEC is well aware of naked shorting abuses, for example, and has turned a blind eye to the issue for years. Then they ban shorting altogether in stocks for the very same companies that have been perpetrating the naked shorting charade, and blame market manipulation for the fall in the stocks of these insolvent companies.

If the SEC wanted to make a quick buck, they could investigate the obvious abuses of naked shorting....they could fine Goldman Sachs or JP Morgan for millions. Instead, a guy with the SEC sends threatening emails to Mark Cuban regarding Loose Change and then later the SEC decides to prosecute him for a 4+ year old violation. I think it's obvious that something smells here, and if you trust that the SEC is simply doing its job as normal, with no ulterior motives, then I believe you're not viewing the SEC with the proper amount of cynicism.

But that's just my opinion. I think the SEC is the most corrupt regulatory institution in the USA, and every time they do something it just reinforces my opinion.

 

[WRellim]

Well, I guess we'll have to agree to disagree.

I tend to view SEC actions in a very cynical light, and I think there's plenty of justification for doing so. The SEC is well aware of naked shorting abuses, for example, and has turned a blind eye to the issue for years. Then they ban shorting altogether in stocks for the very same companies that have been perpetrating the naked shorting charade, and blame market manipulation for the fall in the stocks of these insolvent companies.

If the SEC wanted to make a quick buck, they could investigate the obvious abuses of naked shorting....they could fine Goldman Sachs or JP Morgan for millions. Instead, a guy with the SEC sends threatening emails to Mark Cuban regarding Loose Change and then later the SEC decides to prosecute him for a 4+ year old violation. I think it's obvious that something smells here, and if you trust that the SEC is simply doing its job as normal, with no ulterior motives, then I believe you're not viewing the SEC with the proper amount of cynicism.

But that's just my opinion. I think the SEC is the most corrupt regulatory institution in the USA, and every time they do something it just reinforces my opinion.

Insider trading happens all the time -- but it is only "selectively" prosecuted (which they cover by calling it "discretionary") -- and nearly always for political reasons.

 

[theoakman]

Well, I guess we'll have to agree to disagree.

I tend to view SEC actions in a very cynical light, and I think there's plenty of justification for doing so. The SEC is well aware of naked shorting abuses, for example, and has turned a blind eye to the issue for years. Then they ban shorting altogether in stocks for the very same companies that have been perpetrating the naked shorting charade, and blame market manipulation for the fall in the stocks of these insolvent companies.

If the SEC wanted to make a quick buck, they could investigate the obvious abuses of naked shorting....they could fine Goldman Sachs or JP Morgan for millions. Instead, a guy with the SEC sends threatening emails to Mark Cuban regarding Loose Change and then later the SEC decides to prosecute him for a 4+ year old violation. I think it's obvious that something smells here, and if you trust that the SEC is simply doing its job as normal, with no ulterior motives, then I believe you're not viewing the SEC with the proper amount of cynicism.

But that's just my opinion. I think the SEC is the most corrupt regulatory institution in the USA, and every time they do something it just reinforces my opinion.

Oh, I don't think the SEC is competent at all. Insider trading happens on a daily basis and they do jack shit about it. Like every government agency, the place gets filled with people who do nothing and couldn't do it if they tried. I just think, in this case with Cuban, they found a piece of indisputable evidence that will allow them to shake him down for a quick million. It's just an easy case for them which is documented in Cuban's blog when he sold the stock. If anything, I think you give the SEC way too much credit. They are not smart and methodical. I'd say they are stupid and lazy.

 

[Smiley Gladhands]

Oh, I don't think the SEC is competent at all. Insider trading happens on a daily basis and they do jack shit about it. Like every government agency, the place gets filled with people who do nothing and couldn't do it if they tried. I just think, in this case with Cuban, they found a piece of indisputable evidence that will allow them to shake him down for a quick million. It's just an easy case for them which is documented in Cuban's blog when he sold the stock. If anything, I think you give the SEC way too much credit. They are not smart and methodical. I'd say they are stupid and lazy.

Smart and methodical? All it takes is one person (possibly outside the SEC) to tell someone in the SEC to find something on Cuban. Voila! Four years later, they figure out how to do a google search and come across Cuban's blog. That doesn't take much smarts or complicated methodology.

If it were about the money, there's lower-hanging fruit. But GS and MER and JPM are good friends with the SEC (and TPTB), so they get the free pass and remain unpicked low-hanging fruit.

Just like with the IRS and Wesley Snipes, these agencies are a mechanism to quell dissent and intimidate others by creating a visible example. Cuban was on their bad side (for whatever reason(s)....I tend to think Loose Change and bailoutsleuth were precipitating factors), thus the charges.

 

[melissa22]

Regardless, Cuban is obviously a good chess player.

Cuban is a fucking moron. He is inept and never has been able to get a decent center for his basketball team.

 

[angelatc]

Cuban is a fucking moron. He is inept and never has been able to get a decent center for his basketball team.

During the primaries, he said that he thought there should be a tax on luxury items because guys like him could afford to pay it. His blog was swamped with people pointing out that the last time government tried that the Florida yacht industry was instantly decimated.

 

[theoakman]

Smart and methodical? All it takes is one person (possibly outside the SEC) to tell someone in the SEC to find something on Cuban. Voila! Four years later, they figure out how to do a google search and come across Cuban's blog. That doesn't take much smarts or complicated methodology.

If it were about the money, there's lower-hanging fruit. But GS and MER and JPM are good friends with the SEC (and TPTB), so they get the free pass and remain unpicked low-hanging fruit.

Just like with the IRS and Wesley Snipes, these agencies are a mechanism to quell dissent and intimidate others by creating a visible example. Cuban was on their bad side (for whatever reason(s)....I tend to think Loose Change and bailoutsleuth were precipitating factors), thus the charges.

Again, you are pointing towards a motive. Even if Cuban has to pay the fine, it's chump change to him. The NBA fined him similar amounts for opening his fat mouth. That never stopped him. This is simply an SEC play to get a quick million out of him.

 

[melissa22]

During the primaries, he said that he thought there should be a tax on luxury items because guys like him could afford to pay it. His blog was swamped with people pointing out that the last time government tried that the Florida yacht industry was instantly decimated.

You wouldn't believe how angry basketball fans were as he consistantly never got a better player to fill the center spot. I stopped watching basketball because he wouldn't change. They were my team until I realized that it is all just a sham sport with paid off refs and owners that don't give a damn or don't have a clue. David Stern is like the fed reserve of basketball. But Cuban isn't smart enough(or he plays ball) to make changes so he is weak to David Stern.

 

[Smiley Gladhands]

Again, you are pointing towards a motive. Even if Cuban has to pay the fine, it's chump change to him. The NBA fined him similar amounts for opening his fat mouth. That never stopped him. This is simply an SEC play to get a quick million out of him.

True, the fine will be no big deal for him (another reason why it's not all about the money)....but in the future his name will always be associated with a white collar crime. The discrediting of his name and any future endeavors (dissent against the power structure) is more important than the 750K.

And to make it clear, I don't think the lowly SEC employee came up with the plan to discredit Cuban. I believe the plan originated elsewhere and the SEC is just being used as a mechanism to discredit him.

I mean, if Martha Stewart (or Wesley Snipes) were to point out that the bailout sucks, conventional wisdom would say that she just has sour grapes due to her white-collar incarceration and most people would simply discount her opinion. Just like Ron Paul couldn't get within 10 miles of the MSM (during the primaries) without someone asking him whether he's racist or whether he is going to run as a Libertarian, Mark Cuban will not be able to speak about the bailout on MSM without having to answer 10 questions about his insider trading charge. It's all the exact same game of quelling dissent and discrediting opponents that we've seen TPTB play time and time again.

IMO.

 

[WRellim]

Cuban is a fucking moron. He is inept and never has been able to get a decent center for his basketball team.

Dunno about that, and I could not possibly care less.

IMO the entire concept of professional sports is rather moronic to begin with; never understood why the "circuses" carry any appeal at all, much less why they matter so much to the masses that they get all worked up into a froth over it.