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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.

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