Insider
Traders on
Trump Media
SPAC Deal Get
March 2024
Trial Now
Garelick
Hearing
Proffer
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Feb 6 – As the third of four
insider trading prosecutions
announced on June 29, 2023 by
the US Attorney for the
Southern District of New York,
Michael Shvartsman, Gerald
Shvartsman, and Bruce Garelick
were charged with making more
than $22 million dollars in
illegal profits by trading in
securities of Digital World
Acquisition Corporation based
on MNPI about DWAC’s planned
but not yet public business
combination with a media
company founded by former
President Donald J.
Trump.
The four
prosecutions come a week after
the conviction in SDNY of
Brijesh Goel, formerly of
Goldman Sachs. Goel testified
on his own behalf in a trial
covered by Inner City Press,
which is also reporteding
weekly on the SDNY prosecutors
murky deal with Sam
Bankman-Fried to agree to
extradition from the Bahamas
apparently in exchange for not
seeking detention (unlike on
Avi Eisenberg) and now with
the China bribe charges
severed or dropped.
GARELICK
was given a seat on DWAC’s
board of directors, which gave
him access to valuable MNPI
about DWAC’s plans to merge
with Trump Media. After
learning MNPI through his role
on DWAC’s board, GARELICK
provided updates to his
alleged co-conspirators —
which he called “intelligence”
— about the status of the
merger negotiations and the
timing of a public merger
announcement.
In violation of
the non-disclosure agreements
that they had signed, and in
contravention of GARELICK’s
duties and responsibilities as
a board member, the defendants
bought millions of dollars of
DWAC securities on the open
market before the news of the
Trump Media business
combination was public.
In addition
to their own purchases, the
defendants also passed DWAC’s
confidential information to
their friends on a trip to Las
Vegas, to MICHAEL SHVARTSMAN’s
neighbors, and to GERALD
SHVARTSMAN’s employees at a
furniture supply store.
On July 5, the
case was assigned - wheeled
out - to Judge Lewis J. Liman:
"NOTICE OF HEARING as to
Michael Shvartsman, Gerald
Shvartsman, Bruce Garelick: An
Arraignment and Initial
Conference is scheduled for
July 20, 2023 at 12:00 PM in
Courtroom 15C, 500 Pearl
Street, New York, NY 10007
before Judge Lewis J. Liman."
Inner City Press
was there on July 20 and live
tweeted, thread
Trial will be
March 18, 2024.
On December 29 as
part of omnibus pre-trial
motions Shvartsman filed
copies of DHS reports of
investigation, including audio
recordings of Shvartsman
saying he would open an LLC in
Belize which would buy
assets... and ultimately
provided funding for the
'Truth Social' media platform.
It also names the agents who
brought the arrested
defendants to the Wilke D.
Ferguson Jr. Federal
Courthouse and the Marshals...
Late on January
12 the US filed papers
including the CBP notes when
Bruce Garelick returned from
Cancun, "subject claims to
have met girlfriend Deirdre
Oshea on a dating app, he owns
a home with his wife he is
currently divorcing.. the deal
came from Ramon Orlando."
On February 6,
Garelick through counsel said
he may call at the hearing,
after hearing CBP Officer
Gonzalez, FBI Special Agent
Troaino who, he says, made a
"false statement that the
government did not know
Garelick's passcode" - but
will not question him about
it.
Inner City
Press will continue to cover
the case(s
This case
is US v. Shvartsman, et al.,
23-cr-307 (Liman)
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Mail: Box 20047, Dag
Hammarskjold Station NY NY 10017
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2023 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com
|