DWAC - Brothers Illegally Profited From Trump's Media Company Using Insider Information: Attorney Warns This Is 'A Ticket To Prison' | Benzinga
In a recent development, two brothers have admitted to their participation in a $22 million insider trading scheme linked to the company that brought former President Donald Trump’s social media company Trump Media & Technology Group (NASDAQ:DJT) to the public market.
What Happened: Florida-based venture capitalist Michael Shvartsman, 53, and his younger brother, Gerald, 46, have pleaded guilty to a single count of securities fraud in federal court. The crime they admitted to carries a maximum sentence of 20 years in prison. The sentencing hearing for the Shvartsmans has been set for July 17 by U.S. District Judge Lewis Liman, reported The Hill.
The brothers were charged with illegal trading on nonpublic information in October 2021. The information pertained to Digital World Acquisition Corp. (DWAC), a special purpose acquisition company, planning to merge with Trump Media & Technology Group, the parent company of social media platform Truth Social.
The Department of Justice alleges that the brothers acquired confidential details about the deal, including its announcement timeline, and subsequently purchased millions of dollars' worth of DWAC securities on the open market before the merger with Trump Media was publicly announced.
U.S. Attorney Damian Williams stated in a Department of Justice press ...