Brothers plead guilty to insider trading tied to Trump media company [Video]

Two brothers pleaded guilty in federal court Wednesday for their roles in a $22 million insider trading scheme connected to the company that took former President Trump’s social media company public.

Florida venture capitalist Michael Shvartsman, 53, and his brother, Gerald, 46, each pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. U.S. District Judge Lewis Liman set the brothers’ sentencing hearing for July 17.

The brothers are accused of illegally trading on nonpublic information in October 2021 that Digital World Acquisition Corp. (DWAC), a shell company, planned to acquire Trump Media & Technology Group, the parent company of social media network Truth Social.

According to the Department of Justice, the brothers obtained confidential information about details of the deal, including the timeline of its announcement, and then bought millions of dollars’ worth of DWAC securities on the open market before …