Beautiful Virgin Islands


Donald Trump's media company owns Truth Social. Investors seeking a merger with his company were charged with insider trading.

Prosecutors charge three investors with insider trading in Trump SPAC deal

Authorities arrest three investors for alleged insider trading ahead of Trump’s media company going public; The indictment reveals illicit profits exceeding $22 million.*
On Thursday, federal prosecutors arrested three investors on charges of insider trading in connection with a deal involving Digital World Acquisition Corporation's (DWAC) intended acquisition of Trump Media & Technology Group, the media venture of former President Donald Trump. The arrests signify an intensifying scrutiny of the controversial merger and shed light on how insider information can be exploited for substantial financial gain.

The trio, identified as Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick, is accused of trading on confidential information related to DWAC's undisclosed plan to purchase Truth Social owner Trump Media & Technology Group in October 2021. According to the indictment, the three individuals capitalized on this insider knowledge to amass over $22 million.

Insider Trading Web Unravels
The indictment unveils an intricate web of insider trading wherein the defendants not only traded on nonpublic information but also allegedly relayed this sensitive information to friends, neighbors, and colleagues. These contacts, in turn, acquired securities in Digital World ahead of the public announcement regarding DWAC's deal with Trump Media. Following the announcement, the securities experienced a sharp increase in value, and the defendants, along with the individuals they had tipped off, sold their securities for a substantial profit.

Bruce Garelick's position as a director on Digital World’s board of directors is alleged to have granted him deeper access to DWAC's confidential merger plans with Trump Media. Prosecutors accuse Garelick of sharing what he characterized as “intelligence” regarding the merger negotiations and the timing of the public announcement with his co-defendants.

In total, those in the defendants’ circle purchased tens of thousands of securities in anticipation of the merger announcement. This insider ring was allegedly mobilized during a trip to Las Vegas, and involved Michael Shvartsman’s neighbors and Gerald Shvartsman’s employees at a furniture supply store.

SEC Files Civil Charges
In addition to the federal prosecution, the Securities and Exchange Commission (SEC) filed civil insider trading charges against the trio. Gurbir Grewal, director of the SEC’s Division of Enforcement, emphasized the SEC’s commitment in a statement saying, “Rather than adhere to his duty as an insider, we allege that Garelick, together with the Shvartsmans, monetized that information to generate over $20 million in illicit profits. This case demonstrates the [SEC’s] ongoing commitment to exposing insider trading wherever it occurs, including in SPAC mergers.”

Controversies Surrounding the Merger
While there is no allegation implicating Donald Trump in the insider trading, the charges add fuel to the fire surrounding the DWAC-Trump Media deal. This deal has been under the microscope, raising concerns among legal experts and attracting attention from regulators and prosecutors. Moreover, the Nasdaq stock exchange threatened to delist Digital World last month due to its failure to file a quarterly report, and nearly two years after the merger was initially announced, it has yet to be finalized.

All three defendants have surrendered to the authorities and were expected to make their initial appearance in a federal court in Miami on Thursday.

The case serves as a stark reminder of the importance of transparency and integrity in financial transactions, particularly involving prominent public figures and companies. It is likely to be closely watched by investors, regulators, and the general public as it unfolds.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
ICC Seeks Arrest Warrants for Israeli and Hamas Leaders
I have a dream, MLK inspiring speech
UK's Infected Blood Scandal: Conclusion Nears After Seven Years
Aretha Franklin, Marvis Staples - Oh Happy Day
Julian Assange Granted Right to Challenge US Extradition
BVI Freedom Song
Congo Army Thwarts Attempted Coup Involving Americans and a British Citizen
Billy Preston - You Can't Beat God Giving (Live)
Ireland's Homeless Gain Voting Rights
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Blinken orders crackdown on Israel-Hamas leaks
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Julian Assange Faces US Extradition: Key Facts
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Jacob Zuma Takes Campaign to ANC Stronghold Soweto
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Attempted Assassination of Slovakia PM Robert Fico: Investigation Ongoing
Hello Dolly
What Happens If an Iranian President Dies in Office?
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Spain Recalls Ambassador After Argentina President's Remarks
Bob Marley - Get Up Stand Up
Rishi Sunak Faces Cabinet Backlash Over Proposed Changes to Foreign Student Visas
Yes He Can
Rwanda Denies Entry to Human Rights Researcher
What A Friend We Have In Jesus
Iranian President Ebrahim Raisi Reportedly Killed in Helicopter Crash
Unforgettable
Blue Origin Resumes Space Tourism with 90-Year-Old Ed Dwight
Touch The Hem Of His Garment
Rishi Sunak and Wife Akshata Murty Wealthier Than King Charles
The Lord's Prayer
New Dutch Government Drives Wedge Through EU Liberals
THE GOD MOVEMENT...BEAUTIFUL BVI
Iranian President Raisi Missing After Helicopter Goes Down
Siyahamba
Freemasons and ‘Global War Party’ Accused of Conspiring Against Georgia
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Poland Supports Rolls-Royce's Nuclear Power Plant Initiative
Ramblin' Rose
European Ports Overflow with Unsold Electric Vehicles
Protoje - Who Knows ft. Chronixx
Esprit Files for Bankruptcy in Europe, Putting Hundreds of Jobs at Risk
Pressure - Virgin Islands Nice
Chevron Halts North Sea Drilling Amid Rising Tax Burden
Phil Wickham - House Of The Lord
Jeremy Hunt Accused of Exaggerating Conservatives' Economic Record
My God Is Real (Yes, God Is Real)
Victoria Atkins Discusses Historical Gender Bias in the NHS
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Dublin and Monaghan Bombings 50th Anniversary: Calls for Justice
Louis Armstrong - When The Saints Go Marching In
Rishi Sunak and Akshata Murty’s Wealth Rises to £651 Million
Kanye West Sunday Service - hallelujah, salvation, and glory
New Caledonia Riots Escalate After French Voting Rights Change
Jonathan Nelson - I Believe (Island Medley
Renters Face Fierce Competition as Listing Times Shrink
From The Virgin Islands Sqad Up
Surge in Fake Science: 19 journals shut down due to fraudulent papers from 'paper mills'
Common, John Legend - Glory
Global Birthrates Decline, Raising Economic and Social Concerns
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Boeing Faces Possible Prosecution Over 737 MAX Settlement Violation
I have a dream, MLK inspiring speech
Prisoner Escapes in France as Two Officers Killed in Van Ambush
Aretha Franklin, Marvis Staples - Oh Happy Day
German Court Rules AfD Can Be Monitored for Extremism
BVI Freedom Song
Jacob Rees-Mogg Criticizes Bank of England’s Inflation Strategy
Billy Preston - You Can't Beat God Giving (Live)
Prince Harry and Meghan Markle Promote Invictus Games in Nigeria
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
UK Arms Ban on Israel Would Aid Hamas, Says Cameron
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
US Regulators Probe Credit Card Reward Schemes
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Labour Vows to End Rwanda Deportation Scheme/Scam
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Exonerated Andrew Malkinson Faces Hardship Awaiting Compensation
Hello Dolly
India Poised to Surpass Japan as 4th Largest Economy
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
UN General Assembly Approves Palestinian Membership Bid
Bob Marley - Get Up Stand Up
Biden to Impose Tariffs on Chinese Electric Vehicles
Yes He Can
Cyberattack Disrupts Major US Healthcare Network
What A Friend We Have In Jesus
McDonald's Introduces $5 Meal Deal to Attract Customers
Unforgettable
Protesters Attempt to Storm Tesla's German Factory
Touch The Hem Of His Garment
The United Kingdom reports it has emerged from recession
The Lord's Prayer
Teens Forming Friendships with AI Chatbots
THE GOD MOVEMENT...BEAUTIFUL BVI
WhatsApp Rolls Out Major Redesign
Siyahamba
Neuralink's First Brain Implant Experiences Issue
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
×