A prominent investor affiliated with the company that brought former President Donald Trump’s social media venture to the stock market has been sentenced to 22 months in prison due to insider trading offenses connected to the merger deal. Gerald Shvartsman reportedly profited at least $4.6 million by trading based on confidential information regarding the fusion of Digital World Acquisition Corp. and Trump Media & Technology Group, the parent company of Truth Social.
In April, both Gerald and his brother, Michael Shvartsman, pled guilty to charges of securities fraud. Another associate in the case, Bruce Garelick, was found guilty by a jury in May. Michael is scheduled to receive his sentencing soon, while Garelick’s judgment is set for November 7.
The prosecution argued that Shvartsman’s actions were driven by “brazen corruption and greed,” advocating for a minimum of two years in prison. In contrast, Shvartsman’s legal team contended that he deserved to receive a lesser sentence of 18 months of probation. They argued that he has already faced severe consequences, including damage to his reputation, loss of business partnerships, and significant personal humiliation affecting his family life.
As the shares of Trump Media have seen a whirlwind of price fluctuations recently, trading around $30.78 as of Wednesday, the company’s stock performance has been a rollercoaster in the lead-up to the presidential election. Following a period in which the stock price surged nearly 300%, it experienced an 8% drop but rebounded sharply with a 13% increase shortly after.
Notably, Trump remains the primary shareholder of Trump Media, owning about 57% of its stock, and has mentioned he does not plan to divest his shares. This stock volatility comes just weeks before the upcoming presidential election, where Trump will face off against Vice President Kamala Harris, heightening the stakes for all involved.
The recent fluctuations in stock value have added substantial wealth to Trump’s portfolio, showcasing the intersection of corporate trades and political maneuvering during this critical moment in the electoral landscape.
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