Mark Cuban arrives at "Into the Wild" premiere at the Director's Guild of America Theatre on September 18, 2007 in Los Angeles, CA.
Steve Granitz/WireImage.com

CelebNews@Usmagazine.com! - Ex Dancing With the Stars Contestant Charged With Insider Trading

Billionaire Internet entrepreneur and onetime Dancing With The Stars contestant Mark Cuban has been charged with insider trading.

The Securities Exchange Commission alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in a confidential stock offering after he agreed to keep the information private.

Less than four hours later, he learned the company was planning to raise money through a public offering and that the stock price was about to fall.

To avoid losses in excess of $750,000, he allegedly instructed his broker to to sell all of his Mamma.com stock.

"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential," Scott W. Friestad, Deputy Director of the SEC's Division of Enforcement said in the report.

The SEC is seeking a court judgment against Cuban finding that he violated the antifraud provisions of the federal securities laws, an injunction against future violations, an unspecified civil penalty and restitution of the losses Cuban allegedly avoided.

Unless he is subject to an injunction, Cuban "is likely to commit such violations again in the future," according to the SEC suit.

Cuban -- who has a net worth at $2.3 billion as of March 2007 -- has yet to comment.

Gavin Rossdale: Kingston's "Got a Better Wardrobe Than I Have!"