Lexader-held fund manager convicted for Trump Media insider trading offense.
Bruce Garelick, a director at a shell company called Digital World Acquisition Corporation (DWAC), has been accused of using secret information about an upcoming agreement with Trump Media to make trades and inform others. This knowledge resulted in considerable financial gains when shares of DWAC abruptly increased in value during October 2021.
Damian Williams, the United States Attorney for the Southern District of New York, commented on the situation by indicating that Garelick had willfully broken the law. In his statement on the matter, he said, "Garelick brazenly violated the law by utilising the information he obtained while working with DWAC to trade and warn others." He added, "Garelick's federal conviction demonstrates that engaging in insider trading carries grave consequences."
In late June of last year, it was revealed that Garelick, alongside Florida venture capitalist Michael Shvartsman and his brother Gerald Shvartsman, were arrested and subsequently charged with insider trading. Of these three men, only the Shvartsman brothers chose to plead guilty last month.
It is crucial to mention that former President Donald Trump, who serves as the chairman and leading shareholder of Trump Media, has not been implicated in this insider trading scheme.
This story is still unfolding and will be updated.
Read also:
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
- The chemical industry has little confidence
- Intersport boss hopes for sales boom through sporting events
In light of the ongoing investigation, potential investors should exercise caution when considering investments in related business ventures. Garelick's conviction underscores the importance of adhering to insider trading regulations, as failing to do so can result in severe financial penalties.
Source: edition.cnn.com
