Insider Trading Ring Busted: Brothers Plea Guilty in Trump Media Merger Scheme

Insider Trading Ring Busted: Brothers Plea Guilty in Trump Media Merger Scheme
Insider Trading Ring Busted: Brothers Plea Guilty in Trump Media Merger Scheme

Two brothers from Miami, Michael and Gerald Shvartsman, have pleaded guilty to their involvement in an insider-trading scheme surrounding the merger of Trump Media & Technology Group and Digital World Acquisition Corporation.

Michael, the mastermind behind the operation, profited $18.2 million from illicit trading, while Gerald earned $4.6 million. The scheme involved exploiting information about the planned merger, announced in October 2021.

Michael, 53, used his venture investment firm, Rocket One, to facilitate the scheme. He purchased a $14 million luxury yacht, Provocateur, with some of the proceeds.

Both brothers face potential prison sentences of up to 20 years. Their plea agreements recommend sentences of four to five years for Michael and three to four years for Gerald. Sentencing is scheduled for July 17th.

As Canadian citizens, the Shvartsmans may face deportation upon completion of their sentences.

The charges against the brothers underscore the seriousness of insider trading, a practice that undermines the integrity of the financial markets.

newsid: qwn1xoytn10iouv

Related stories
6 hours ago - Donald Trump is set to receive $1.3 billion worth of shares in Trump Media & Technology Group if its share price remains above $12.50.
2 days ago - Trump Media & Technology Group's stock surged amidst allegations of illegal naked short-selling, with the company seeking Nasdaq's assistance to prevent market manipulation.
5 days ago - Shares in Trump's social media company have hit a three-month low, raising concerns about its value.
1 week ago - Truth Social parent company's stock plummeted 12% due to plans to sell additional shares, further exacerbating its decline since its debut and Trump's financial woes.
1 week ago - Shares of Trump's social media company plummeted 15% due to plans to sell more shares, including the former president's stake.
Other stories
6 minutes ago - Express files for bankruptcy due to declining sales driven by consumers' preference for casual fashion.
9 minutes ago - PetSmart leverages technology, including commercetools and AI, to enhance customer experiences, personalize services, and improve pet care.
11 minutes ago - Tijuana Flats, a Tex-Mex restaurant chain, files for Chapter 11 bankruptcy due to rising costs and ineffective menu changes.
12 minutes ago - Tech companies address rising AI energy demand through sustainable strategies, including standards and investments in clean energy.
12 minutes ago - Amazon's dominance in online retail has driven up prices due to high seller fees, potential price manipulation, and its requirement for lowest pricing.