The Securities Exchange Commission has charged Mark Cuban, the Dallas Mavericks owner and financer of the controversial movie Redacted, with insider trading. The charges stem from Cuban allegedly selling-off his shares in “Mamma.com” after learning that it was raising money through a private offering back in 2004.

The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.

Why? In a PIPE deal, new shares are offered at a discount to the current trading price. Such deals often spark a signficant drop in stock prices.

Cuban is most remembered by the political blogosphere as the financer of Redacted, a movie based on the Mahmudiyah killings. The movie, which sparked outrage among many, apparently made no mention of the convictions by the United States.