Trio Accused of Engaging in Insider Trading Prior to Trump Media Merger

Gage Skidmore from Peoria, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

( – This Thursday, legal proceedings started against a trio of men from Florida, accused of illegal insider trading. The alleged crime led to them amassing over $22 million before the announcement that the media company owning Donald Trump’s Truth Social platform would go public, facilitated by an acquisition firm.

The indictment in a Manhattan federal court clarifies that neither Trump nor his media firm is implicated in these charges. Instead, the trio, invited to invest in Digital World Acquisition Corp., a special-purpose acquisition entity, were given insights into potential targets DWAC and Benessere Capital Acquisition Corp. before the media company’s public announcement.

Law enforcement highlighted that the accused had purchased a substantial amount of DWAC securities before the news about Trump Media & Technology Group’s intention to go public. After the public announcement, they quickly sold these securities, resulting in a windfall of millions.

“Insider trading is far from a quick buck,” emphasized U.S. Attorney Damian Williams, adding that his office maintains constant vigilance for such instances and takes swift action to look into potential perpetrators.

The defendants, identified as Sunny Isles Beach’s Michael Shvartsman, 52; Aventura’s Gerald Shvartsman, 45; and Fort Lauderdale’s Bruce Garelick, 53, are scheduled for their first court hearing on Thursday afternoon in Miami.

It was revealed that two of the defendants, Michael and Gerald Shvartsman, are brothers. Michael owns a venture capital firm, Rocket One Capital LLC, and Gerald is the firm’s Chief Investment Officer. According to the indictment, Garelick, who had a place on DWAC’s board of directors, is alleged to have shared confidential details with his co-defendants.

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