Three people from Florida have been charged with insider trading in a case connected to former President Donald Trump’s media company. The indictment accuses the trio of illegally making more than $22 million ahead of the public announcement that an acquisition firm was going to take the company public. The charges do not implicate the Republican leader or his organisation.
According to an AP report quoting officials, the defendants had purchased millions of dollars of DWAC securities on the open market before news of the Trump media business was made public. The trio – identified as Michael Shvartsman, his brother Gerald Shvartsman, and Bruce Garelick – then allegedly dumped their securities for a significant profit.
Trump Media & Technology Group had been slated to merge with the publicly traded Digital World Acquisition Corp in October 2021. This was later extended till September 2023 with the delay reportedly costing the company $100 million. DWAC has also been under investigation by the Securities and Exchange Commission, as well as by federal prosecutors in New York City.
Michael Shvartsman owned venture capital firm Rocket One Capital LLC while his brother was the company’s chief investment officer. Garelick was reportedly given a seat on DWAC’s board of directors and had access to confidential information. It said he then shared that information with his co-conspirators.
“Insider trading is not easy money. It’s cheating. It’s a bad bet. Because my Office, the Southern District of New York, is watching. And we’re working quickly to investigate and prosecute anyone who corrupts our financial markets. And we’ll keep at it as long as it takes. You can bet on that,” AP quoted an official release by US Attorney Damian Williams to add.
The indictment claims that the men were invited to invest in the special purpose acquisition company. They were also believed to have been provided confidential information that a potential target of DWAC and another acquisition company, Benessere Capital Acquisition Corp, was Trump Media & Technology Group.
(With inputs from agencies)
Download The Mint News App to get Daily Market Updates.
Updated: 29 Jun 2023, 11:25 PM IST