Mark Cuban charged with insider trading

[speeds]

http://www.huffingtonpost.com/2008/11/17/mark-cuban-insider-tradin_n_144320.html

The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering.
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.
In a PIPE transaction new shares are issued at a discount to the current trading price. An announcement of a PIPE transaction is often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.
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Back when it happened, before charges were leveled against him, Mark Cuban's Mamma.com stock sale made news. Cuban explained his rationale for the sale then:

Mamma.com tumbled 15% Friday on news that Internet billionaire Mark Cuban had sold his highly-publicized stake in the company.
Cuban told internetnews.com that he took issue with the company's $16.6 million private placement announced June 29.
"I hate when companies do PIPES-type transactions to raise money," Cuban said in an email. "It's dilutive, and I hate being diluted...that simple."
According to SEC filings, Cuban bought his shares on March 4, when the stock traded between 10.80 and 12.99, and sold on June 29, when it traded between 12.91 and 14.23.​

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[Anima]

How is this insider trading? Mamma said it would be doing PIPES which dilutes the price of stock, so he sold it. What was he supposed to do, take a huge loss?

It sounds like the SEC is just on a witch hunt for any well known billionaire so they can make it look they are doing something with regards to the current financial situation.