Billionaire Mark Cuban Voices Aggressive Disdain of SEC and “Ridiculous” Lawsuits in New Interview
- Mark Cuban discusses hatred for SEC with CCN and Yahoo Finance.
- Cuban was the subject of a five-year battle against the SEC over accusations of insider trading.
Mark Cuban, owner of the Dallas Mavericks and prominent billionaire, has never been quiet about the different industries or companies he dislikes. His skepticism of the Bitcoin industry is well publicized, but his recent comments took on a different entity in the financial sector – the Securities and Exchange Commission (SEC).
Voicing his contempt with both CCN and Yahoo Finance, Cuban discussed the “ridiculous” lawsuits that the SEC keeps bringing against investors as some way to justify themselves. He commented,
“I’m obviously not a fan of the SEC. I think they prefer regulation through litigation and that creates problems for everyday investors.”
The way that the SEC operates, Cuban believes that investors are left completely in the dark about the laws that govern securities. As it avoids providing full information to investors, those same investors end up violating the rules. Cuban explains that the entity is “kind of useless.” He explained that, if the regulator decided to actually make the market safe for the community, they’d be clearly outlining their guidelines on things like insider trading. Instead, they just publicized the legal precedents that the SEC has established in various cases. As an investor, “you have no idea,” explains Cuban.
Providing a supporting case for the “stupidity” and bullish nature of the SEC, Cuban spoke about someone who purchased stock after determining that his company would be sold, only to be prosecuted. Cuban explained that the guess that the company would be sold was a pure stroke of luck, and the SEC ultimately lost the lawsuit against him, but
“that’s just some of the ridiculous stuff that they do.”
The SEC has been on Cuban’s nerves for years. In 2008, Cuban was the subject of a lawsuit by the SEC, which said that Cuban’s sale of 600,000 shares in Mamma.com qualified as insider trading. The lawsuit alleged that the sale was to help Cuban avoid a loss worth $750,000. Even though the court battle lasted for five years, Cuban was ultimately acquitted in 2013 with a Texas jury. During those years, Cuban would not settle, even though the whole case would have been over with a $2 million fine.
Cuban saw the lawsuit as an attack from the SEC, lashing out against the lead prosecutor after the acquittal, stating that she just “stood up there and lied.” He told reporters that the SEC was planning to destroy him, which is why he would not settle, adding that this whole situation was “personal,” rather than a professional circumstance.
Interestingly, when fellow billionaire Elon Musk became a target of the SEC for his Twitter activity, Cuban told him to settle, according to reports from the Wall Street Journal. Six months later, Musk took the advice and has continued to be cautious in the way that he tweets.
As far as Bitcoin goes, Cuban remains a skeptic, saying that gold and Bitcoin are on the same level for him, calling them “collectibles.” He added that the only reason they have value is “supply and demand,” adding that a more likely purchase for him would be “a pet rock.” He added that the only people that should invest with Bitcoin are the ones that are ready to lose. He even advised potential investors that they should
“pretend you’ve already lost your money.”