Get updates delivered to you daily. Free and customizable.
ABC News
2 brothers who helped fund Trump Media company plead guilty to insider trading
By Aaron Katersky,
2024-04-03
Two brothers who helped fund former President Donald Trump's now-public social media company pleaded guilty Wednesday to insider trading.
Michael Shvartsman and Gerald Shvartsman made millions by trading in shares of Digital World Acquisition Corporation before it merged with Trump Media, according to federal prosecutors in New York.
Michael Shvartsman, 52, of Sunny Isles Beach, Florida, and Gerald Shvartsman, 45, of Aventura, Florida, were arrested on securities fraud charges last July.
They each pleaded guilty Wednesday to one count of securities fraud.
Each of them faces up to 20 years in prison when they're sentenced in July, but prosecutors agreed to recommend a sentence of about three years.
"Michael and Gerald Shvartsman admitted in court that they received confidential, inside information about an upcoming merger between DWAC and Trump Media, and used that information to make profitable, but illegal, open-market trades," said U.S. Attorney Damian Williams. "Insider trading is cheating, plain and simple."
Dado Ruvic/Reuters, FILE - PHOTO: The Truth social network logo is seen displayed behind a woman holding a smartphone in this picture illustration, Feb. 21, 2022.
Prosecutors said the brothers placed an associate on DWAC's board of directors, who funneled them valuable information about the merger plan with Trump Media that the brothers then used to trade. Together, they made $22 million in illegal profits, prosecutors said.
There was no evidence that former President Trump was aware of the brothers' conduct, and he was not part of the case.
Trump Media went public last month and is now trading on the Nasdaq exchange.
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Comments / 0