The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

Business

Two plead guilty to insider trading related to Trump Media merger

by admin April 5, 2024
April 5, 2024
Two plead guilty to insider trading related to Trump Media merger

Two men pleaded guilty on Wednesday to insider trading in securities in the company that ultimately took former U.S. President Donald Trump’s media business public.

Michael Shvartsman, 53, head of Miami-based venture capital firm Rocket One Capital, and his brother Gerald Shvartsman, 46, each pleaded guilty to one count of securities fraud before U.S. District Judge Lewis Liman in Manhattan.

Rocket One’s chief investment officer, Bruce Garelick, is scheduled to face trial on related charges on April 29.

Prosecutors charged the trio last year with illegally trading on inside information about Trump Media & Technology Group’s plan to go public through a merger with a blank-check company. TMTG operates Truth Social, Trump’s main social media platform.

Prosecutors said the trio signed confidentiality agreements in June 2021 when they were approached to become early investors in Digital World Acquisition, the blank-check company. The agreements required them to keep information they learned confidential and not trade the company’s securities in the open market, prosecutors said.

After hearing the company was in merger talks with TMTG, prosecutors said the trio tipped others and bought Digital World securities, selling them after the deal was announced on Oct. 20, 2021, to make a total of $22 million in illegal profit.

Michael and Gerald Shvartsman said in court that they knew what they were doing was wrong when they traded on nonpublic information.

“I’ve made a terrible mistake,” Gerald Shvartsman said at the hearing.

“Insider trading is cheating, plain and simple,” U.S. Attorney Damian Williams said in a statement after the pleas.

The Shvartsmans are scheduled to be sentenced on July 17. Securities fraud carries a maximum sentence of 20 years in prison, but any sentence would be imposed by the judge based on a range of factors. The average prison sentence in federal fraud cases in the U.S. last year was around two years.

TMTG was publicly listed in late March, and its shares have been on a wild ride fueled by speculators betting on enthusiasm for Trump, the Republican presidential candidate in November’s election.

The stock shed early gains this week as Truth Social’s parent company disclosed it had lost more than $58 million in 2023.

TMTG shares were trading at around $51.60 on Wednesday morning, making Trump’s stake worth about $4 billion, though he is not allowed to sell or borrow against it for six months.

Trump Media is also embroiled in legal battles in Delaware and Florida with co-founders Wesley Moss and Andrew Litinsky, who have accused the company of trying to improperly dilute their stake. Trump Media has argued they failed to earn their shares and seeks to strip them of their ownership.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
K-pop star ends relationship weeks after it sparked a fan backlash
next post
CleanTech Lithium – CEOL Applications

Related Posts

Intel used to dominate the U.S. chip industry....

May 1, 2024

DJT shares close down more than 9% as...

May 3, 2024

Hermès to hike U.S. prices for iconic bags...

April 18, 2025

Boeing to cut 17,000 jobs as losses deepen...

October 15, 2024

Apple just landed a key win for the...

August 21, 2025

Walz’s family relied on Social Security when his...

August 24, 2024

Fatburger parent company, chairman charged in alleged fraud...

May 14, 2024

Walgreens plans store closures as CEO says consumers...

June 29, 2024

GM CEO says commitment to all-electric fleet remains...

June 7, 2024

Ontario to remove U.S. alcohol from shelves after...

February 4, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (1,516)
    • Investing (3,933)
    • Politics (5,246)
    • World (4,762)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 TheInvestmentWhisperer.com | All Rights Reserved