Brothers Michael and Gerald Shvartsman pleaded guilty to insider trading after they together made more than $22 million by making illegal trades using non-public knowledge that Digital World Acquisition Corp was merging with Trump Media & Technology Group, the parent company of former President Donald Trump’s social media platform Truth Social.
Gerald Shvartsman, hides from photojournalists using an umbrella after exiting Federal Court, ... [+]
The Schvartsman brothers, both from Florida, each pleaded guilty to one count of securities fraud, which carry a maximum sentence of 20 years in prison, and sentencing is set for July 17.
After being invited to invest in Digital World Acquisition Corp, they signed non-disclosure agreements and learned confidential information about the merger between Digital World and Trump Media—and then bought “millions of dollars” of Digital World securities ahead of a public announcement of the merger.
This is a developing story. Check back for updates.