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US prosecutors on Thursday charged three men with insider trading ahead of the proposed merger of former President Donald Trump’s social media company and a shell company in late 2021.
Michael Shvartsman, Gerald Shvartsman and Bruce Garelick allegedly made more than $22 million trading in Digital World Acquisition, a so-called special purpose acquisition company, or SPAC, based on tips about its planned combination with Trump Media & Technology Group.
The charges were announced by US Attorney Damian Williams in Manhattan. Neither Trump nor his company was charged. DWAC did not immediately respond to requests for comment. Grant Smith, a lawyer for the defendants, declined to comment.
Prosecutors said the alleged scheme began after the defendants invested in DWAC and Garelick became a director.
