Cuban backs corporate fraud exposé website

Entrepreneur billionaire Mark Cuban has invested in a new journalism site focused on exposing corporate fraud.

Sharesleuth.com, the brainchild of veteran St Louis Post-Dispatch reporter Chris Carey, is expected to go live next month.

Carey told silicon.com sister site CNET News.com in an email on Wednesday: "It will be a blog-style news operation dedicated to exposing securities fraud and corporate malfeasance. We're going to identify questionable companies and tell compelling, deeply researched stories about the people behind them." Carey will serve as the editor and president of Sharesleuth.com.

But the site could have a twofold purpose.

Cuban told an Associated Press reporter that he would use the knowledge garnered by investigators for the site to buy and sell stocks before stories are published. The statement raised some eyebrows about journalistic ethics, as many publications have strict policies concerning investments in the industries they cover.

But Cuban, never a conformist to old-school rules, sees it differently: "Isn't the smart investor the one who does their research and then makes a buy or sell decision? In our case, we will do the same thing, only we will publish why we are doing it."

The unusual partnership of new-age entrepreneur and veteran journalist began over the internet.

Cuban, perhaps best known as the unconventional owner of the Dallas Mavericks, maintains Blog Maverick. In emailing the billionaire blogger about one of his posts, Carey mentioned the idea for a news organisation dedicated to covering stock fraud. Cuban expressed an interest in financing such a venture, and the relationship grew from there.

As many newspapers look to save money, Carey said, their focus of coverage is becoming more local. Sharesleuth.com will give him the opportunity to pursue fraud stories in depth, something he believes newspapers are shying away from because of the cost and manpower needed to investigate it.

He also hopes to tap into a more national and international audience. The site will utilize HDNet and HDNet Films resources to offer original investigative reporting with multimedia content. Cuban is co-founder of HDNet, a TV provider for high-definition programming.

The Sharesleuth.com venture was first reported by PaidContent.org.

Candace Lombardi writes for CNET News.com