SUMMARY
- Three individuals face charges over alleged illicit share trading in a company set to merge with Trump's media venture.
- Over $22 million in illegal profits reportedly made by trading based on undisclosed information about the planned business collaboration.
- Allegations are part of a broader DOJ initiative targeting illicit trading, amid challenges for the Digital World Acquisition Corporation's funding and investigations.
The United States Justice Department has taken legal action against three individuals who allegedly engaged in unlawful share trading in a company known as a shell, prior to its public announcement of a planned merger with Trump Media, the media entity established by former President Donald Trump.
The trio, comprising Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick, reportedly raked in over $22 million in unlawful gains by trading in securities of Digital World Acquisition Corporation (DWAC). This act was allegedly based on confidential information regarding DWAC's intended, but not yet disclosed, business collaboration with Trump's media establishment, according to the Justice Department.
However, the Justice Department has not implicated Trump or any of his relatives in any illegitimate activities related to this matter. A representative for TMTG, Trump's media venture, has yet to comment on the allegations.
These charges form part of a wider series of allegations by the DOJ concerning illicit trading. Among these accusations were charges against two Pfizer employees who purportedly traded on insider information about trial results for Paxlovid, Pfizer's treatment for Covid-19.
Digital World Acquisition Corporation is a unique acquisition entity, a SPAC, which announced its intention to merge with Trump Media & Technology Group (TMTG) in October 2021. Despite being announced over a year and a half ago, the merger has yet to come to fruition. DWAC has encountered difficulty raising funds from investors due to multiple ongoing federal investigations into its operations and funding sources.
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