Two
Insider
Traders on
Trump Media
SPAC Pled For
Garelick Trial
Jury Selection
Past 6 PM
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 29 – 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.
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
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 March 15
Shvartsman through counsel
wrote to Judge Liman alleging
that the US used a Lawyer
Informant to record him.
Counsel identified the Zoom
account used: John [at]
lighthousetrust [dot]
ch. A Google search of
that shows a Lighthouse Trust
General Counsel named John
Ivsan at Linhart Seuss Ivsan
LLP
More on X for
Subscribers here
& Substack here
On March 29 there
was a conference, thread:
Defense: We
contest their attempt to call
cannabis bank account a prior
bad act. The bank knew, and
continued to process the
payments.
AUSA: The bank
was misinformed.
Judge: I'm not
sure it's 404(b)
Defense: DWAC has
sued Mr Orlando, in Florida,
alleging he spoke publucly
about merger with Trump Media
Group. I had assumed Orlando
would be a government witness
against my client. So DOJ
should ask DWAC, or their
counsel at Wilmer Hale,
their basis
On April 1, Judge
Liman docketed that Michael
Shvartsman and Gerald
Shvartzman were scheduled to
plead guilty on April 3.
They did,
and Inner City Press is
publishing Michael
Shvartsman's plea agreement here - it had
an April 2 deadline to get a
one offense level point
reduction, see here.
Bruce Garelick is
still going to trial - and on
April 19 his counsel filed a
motion in limine to, among
other things, preclude
evidence of DWAC board
members' and other witnesses'
subjective opinions and
understandings. The first
example given is that "DWAC
Board member Eric Swider told
the government that 'all the
targets of DWAC were
confidential, including
TMTG'... This evidence fails
the basic test of Rule 401."
On April 21, the
US Attorney's Office responded
that the testimony should come
in - as should mug shots
which, the US notes, do not
contain profile shots or
height measurement markings in
the background."
On April 29, jury
selection began but did not
end, by 6 pm. Of 34
prospective jurors in the
courtroom at 5 pm, each was
summoned into the robing room
for questioning, seemingly
with the defendant present.
Three were excused at 6 pm and
the rest told to return, but
not to read anything about the
case.
Watch this site.
This case
is US v. Shvartsman, et al.,
23-cr-307 (Liman)
***
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