Three charged with insider trading ahead of Trump’s media merger

CNBC reportedThree Florida men were charged Thursday with insider trading of a shell company’s stock before it announced plans to merge with a social media firm launched by former President Donald Trump.

According to prosecutors, this appears to be a relatively straightforward case of alleged insider trading: Garelick and the Shvartsmans had non-public information, including updates on DWAC’s plan to buy Trump Media & Technology Corp., and they allegedly used that information in their lucrative investment strategies.That said, it’s not the only discouraging headline surrounding the process.

that the company planning to merge with Trump Media & Technology Group informed the Securities and Exchange Commission that its financial statements through 2022 should not be relied upon due to an error “accounting for certain expenses.”added, “Digital World Acquisition Corp. also revealed that, for the second time, it is at risk of being delisted from NASDAQ for failing to file a mandatory report.”that if DWAC and the Trump Media & Technology Corp.

The report added that the entity — the ES Family Trust — had not officially disclosed the role it would assume in the Trump Media and Technology Group. The Postthat the companies “also have not disclosed to shareholders or the SEC that Trump Media paid a $240,000 finder’s fee for helping to arrange the $8 million loan deal with ES Family Trust — or that the recipient of that fee was an outside brokerage associated with Patrick Orlando, then Digital World’s CEO.

I have a hunch some readers are saying right about now, “Um, Steve, I have no idea what you’re writing about.”for those just joining us. It was nearly two years ago when the former president and his team launched the Trump Media & Technology Group, which appeared to have bold, multimedia ambitions: It said it intended to compete with both Twitter and Netflix.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Feds charge three with illegal trading ahead of Trump Media merger announcementMichael Shvartsman, Gerald Shvartsman, and Bruce Garelick allegedly 'made more than $22 million dollars in illegal profits.
Source: CNBC - 🏆 12. / 72 Read more »

3 men who funded Trump-acquired social media company charged with insider tradingThree men who funded the company that became Donald Trump's Truth Social platform have been charged with insider trading.
Source: ABC - 🏆 471. / 51 Read more »

SEC files insider trading charges related to Trump Media SPAC acquisitionThe Securities and Exchange Commission has filed charges against Bruce Garelick, a former board member of Digital World Acquisition Corp., and two others...
Source: MarketWatch - 🏆 3. / 97 Read more »

Investors charged with insider trading in Trump Media merger dealThree investors in the blank-check firm working to take former president Trump’s media company public were charged with using insider information to make $22 million in illegal profits, federal prosecutors said Thursday.
Source: washingtonpost - 🏆 95. / 72 Read more »