Trio Charged In Alleged Truth Social Merger Scheme

The New York Times reports:

Federal authorities charged three men on Thursday with taking part in a scheme to make $22 million in illegal profits by trading ahead of the proposed merger of former President Donald J. Trump’s social media company with a cash-rich public shell company in fall 2021.

The arrests came after a lengthy investigation by federal prosecutors in Manhattan into trading in the securities of Digital World Acquisition Group, a so-called special purpose acquisition company. The inquiries had focused on a small Miami-based venture capital firm, Rocket One Capital, led by Michael Shvartsman.

Federal prosecutors in Manhattan said they charged Mr. Shvartsman and his brother Gerald, who owns an outdoor furnishing store in Miami, in connection with the alleged improper trading. Also charged was Bruce Garelick, a former hedge fund manager who had worked at Rocket One. He also was a board member of Digital World before resigning last summer.

Read the full article.

Per the Times, none of three are believed to have any formal connection with Trump or Trump Social. But this story is new, so that may change.

JUST IN: Feds have charged three men with illegally trading shares of #DWAC ahead of its 2021 Trump Media merger announcement. All three were arrested this morning. https://t.co/jBXy4Wpe2r

— Christina Wilkie (@christinawilkie) June 29, 2023