Insider Trading Scandal Rocks Trump’s Social Media Empire
A stunning fall from grace has befallen Gerald Shvartsman, a businessman who invested in the company that took former President Donald Trump’s social media platform, Truth Social, public. On Wednesday, Shvartsman was sentenced to 22 months behind bars for his role in a massive insider trading scheme related to the merger between Digital World Acquisition Corp. and Trump Media & Technology Group.
A Lucrative Scheme Unravels
Shvartsman’s illegal activities netted him a staggering $4.6 million in profits, according to Bloomberg. His brother, Michael Shvartsman, and another accomplice, Bruce Garelick, were also implicated in the scandal. The brothers pleaded guilty to securities fraud charges in April, while Garelick was found guilty by a jury in May.
Prosecutors Seek Justice
Prosecutors had pushed for a minimum two-year prison sentence for Shvartsman, citing his “brazen corruption and greed.” In contrast, his lawyers argued for a more lenient 18 months of probation, citing the significant personal and professional consequences their client had already faced.
Trump Media’s Wild Ride
Meanwhile, Trump Media & Technology Group, the company behind Truth Social, has experienced a tumultuous week. After a remarkable rally that saw its shares triple in value, the stock plummeted 8% on Tuesday afternoon, only to rebound by 13% on Wednesday. As of Wednesday afternoon, shares were trading at $30.78.
A Presidential Election Looms
This volatility comes just weeks before the presidential election, in which Trump will face off against Democratic presidential candidate and Vice President Kamala Harris. Trump, who holds a 57% stake in Trump Media, has stated he has no intention of divesting himself of his holdings. The recent surge in the company’s stock has added billions to his net worth.
The Fallout Continues
As the dust settles on this insider trading scandal, one thing is clear: the consequences of corruption can be severe. With Michael Shvartsman facing sentencing on Thursday and Garelick set to be sentenced on November 7, the full extent of this scheme is yet to be revealed. One thing is certain, however – the world will be watching closely.
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