Two Florida brothers, Michael and Gerald Shvartsman, pleaded guilty
to insider trading charges, admitting to illegally making over $22 million before the public announcement in 2021 that an acquisition firm was taking former President Donald Trump’s media company public.
They acknowledged knowing they were committing a crime when making trades in October 2021 through a New York broker. The indictment did not implicate Trump or his media company. The brothers invested in Digital World Acquisition Corp. after being tipped off about Trump Media being a potential target. They sold their securities for $22 million in profits once the news was public.
The men shared their insider information with friends and employees profiting from the trades. Michael and Gerald Shvartsman are awaiting sentencing and facing federal guidelines recommending four years and three years in prison, respectively, along with significant forfeitures. U.S. Attorney Damian Williams emphasized that insider trading is cheating and that convictions remind us of the consequences of corrupting the stock market’s integrity.
Read the full article at The Associated Press.