Mark Cuban, Madoff Investigator

Looks like we’re not the only ones obsessed with uncovering Madoff nuggets. Mark Cuban, who has his own legal crap to deal with, has got the bug and he appears to have uncovered an interesting nugget. What’s interesting about it is that it’s not about Madoff’s money management business, but the market-making side.

Mark notes that Bernie’s market-making platform is called Pimex, and that it was built in conjunction with a company called Silicon Summit whose CEO is Larry Gusto. 

And Larry Gusto has apparently had some problems with the law:


BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF CORPORATIONS TO: Silicon Summit Technologies, Inc. (Formerly Larry Gusto Consulting Company, Inc.), Inc., Inc. 950 Tower Lane, Suite 1950 Foster City, CA 94404 Larry Gusto dba Silicon Summit Technologies 1338 Orange Avenue San Carlos, CA 94070 


(For violations of section 25401 of the Corporations Code) The California Corporations Commissioner finds that: 1. Larry Gusto formed several business entities, including the following: Larry Gusto Consulting Company, Inc., a California corporation, incorporated on August 2, 1994, changed its name to Silicon Summit Technologies, Inc. (“SSTI”) on August 29, 1997. On June 21, 2000, Gusto also filed a fictitious business name for “Silicon Summit Technologies.” On December 7, 2000, Larry Gusto incorporated, Inc., a Delaware corporation and subsequently changed its name to, Inc. on November 29, 2000. According to public records, on March 22, 2001, Larry Gusto merged SSTI into, Inc. On December 23, 2002, the California Secretary of State suspended, Inc. All the foregoing entities were formed and controlled by Larry Gusto and located primarily at 950 Tower Lane, Suite 1950, Foster City, California. 2. At all relevant times, Larry Gusto acted as the principal, president, chief executive officer (CEO) and agent for the above-named entities. 


Larry Gusto represented to the public that SSTI “is the leading provider of e-finance products and services” and they “also provide to the financial services industry everything from project management and business analysis to custom software development and systems integration.” 4. Beginning in approximately 2000 and continuing thereafter, Larry Gusto (“Gusto”) and/or others, acting in concert or participation with him, offered or sold securities in the form of shares of common stock to the public and made, or caused to be made, misrepresentations and omissions of material facts in connection with the offers or sales of the securities to the public. a. The misrepresentations of material facts include: (1) SSTI was a leading provider of Financial Information Exchange (FIX) messaging systems for electronic securities trading; (2) SSTI had the software required for the FIX messaging system; and (3) SSTI was in need of bridge financing and would be receiving funding from Reuters. b. The omissions of material facts include: (1) SSTI had a long-standing legal dispute with programmers over the FIX software and a court would order an auction of the software; (2) SSTI had a civil judgment against it relating to disputes over FIX software; (3) Inc. was a suspended corporation, not in good standing with the California Secretary of State’s Office or the California Franchise Tax Board; (4) Gusto had multiple tax liens filed against him; and (5) Gusto and his companies were defendants in several civil lawsuits. -3-DESIST AND REFRAIN ORDER

The California Corporations Commissioner is of the opinion that Silicon Summit

Technologies, Inc., Larry Gusto Consulting Company, Inc.,, Inc.,, Inc., Silicon Summit Technologies and/or Larry Gusto offered or sold the securities in this State by means of written or oral communications, which included untrue statements of material fact or omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, in violation of section 25401 of the Corporate Securities Law of 1968. Pursuant to section 25532 of the Corporate Securities Law of 1968, Silicon Summit Technologies, Inc., Larry Gusto Consulting Company, Inc.,, Inc.,, Inc., Silicon Summit Technologies and Larry Gusto are hereby ordered to desist and refrain from offering or selling or buying or offering to buy any security in the State of California by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. This Order is necessary, in the public interest, for the protection of investors and consistent with the purposes, policies, and provisions of the Corporate Securities Law of 1968. Dated: June 25, 2003 Los Angeles, California DEMETRIOS A. BOUTRIS California Corporations Commissioner By_______________________________ ALAN S. WEINGER Supervising Counsel Enforcement and Legal Services
As Cuban himself notes, this could be something or it could be nothing. But somehow we’re not shocked that even in Madoff’s “legitimate” business, he ran around with characters that that had shady pasts.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.