Two investors connected to an insider trading scheme regarding the merger of Digital World Acquisition Corporation (DWAC) with Trump Media & Technology Group have pled guilty to securities fraud in connection to the scheme.
On Wednesday, brothers Michael Shvartsman and Gerald Shvartsman each pled guilty to one count of securities fraud in New York City, according to a press release. Each charge carries a maximum sentencing of 20 years in prison.
Their pleas come approximately 10 months after they were arrested and charged with their involvement in an insider trading scheme.
Prosecutors say both men made more than $22 million in illegal profits by trading in securities of DWAC based on material, non-public information about the merger between DWAC and Trump Media – a media company founded by former president Donald Trump.
Michael and Gerald Shvartsman admitted in court that they received confidential, inside information about an upcoming merger between DWAC and Trump Media and used that information to make profitable, but illegal, open-market trades,” US Attorney Damien Williams said in a press release.
“Insider trading is cheating, plain and simple, and today’s convictions should remind anyone who may be tempted to corrupt the integrity of the stock market that it will earn them a ticket to prison.”
Both men are scheduled to be sentenced on 17 July.
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