Gerald Shvartsman and his brother Michael Shvartsman, two of three investors charged with insider trading in connection with the listing vehicle that took Donald Trump’s media company public, pleaded guilty at a hearing Wednesday.
Michael Shavartsman had previously pled not guilty, then reversed course.
Each of the brothers pleaded guilty in New York to one count of securities fraud, which carries a maximum sentence of 20 years in prison, according to federal prosecutors. The brothers also passed their insider knowledge about the impending Trump Media deal to friends, prosecutors added.
The two brothers and a third man, were invited to invest in Digital World Acquisition and another SPAC, and they signed nondisclosure agreements that gave them access to confidential information about potential targets of the company, including Trump Media, according to the government.
A trial is set to start April 29 for Bruce Garelick, a Rocket executive and former member of Digital World Acquisition’s board. The trio are accused of making more than $22 million trading ahead on confidential information about potential targets of the SPAC, including Trump Media & Technology Group. Read more.
