Two men plead guilty to securities fraud in connection with Truth Social IPO

The Shvartsmans admitted to receiving confidential information about the DWAC merger with TMTG in advance and ultimately bought up many shares in DWAC before news of the merger became public.

By Ben Whedon

Published: April 3, 2024 4:37pm

Two men pleaded guilty on Wednesday to one count of securities fraud in connection with an insider-trading effort linked to the stock exchange debut of former President Donald Trump's media firm.

The Trump Media & Technology Group went public under the ticker DJT in late March after completing a merger with Digital World Acquisition Corp.

The DOJ announced the guilty pleas of Michael Shvartsman and Gerald Shvartsman on Wednesday, confirming they made $22 million as part of the scheme. The pair entered their plea to U.S. District Judge Lewis J. Liman on the same day.

"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," said U.S. Attorney Damian Williams in a press release.

The Shvartsmans admitted to receiving confidential information about the DWAC merger with TMTG in advance and ultimately bought up many shares in DWAC before news of the merger became public.

Ben Whedon is an editor and reporter for Just the News. Follow him on X, formerly Twitter.