Brothers Illegally Profited From Trump's Media Company Using Insider Information: Attorney Warns This Is 'A Ticket To Prison'
Portfolio Pulse from Benzinga Neuro
Two brothers, Michael and Gerald Shvartsman, have pleaded guilty to securities fraud involving insider trading with information about the merger between Digital World Acquisition Corp. (DWAC) and Trump Media & Technology Group, the parent company of Truth Social. This insider trading scheme, which allowed them to profit illegally from nonpublic information about the merger, carries a maximum sentence of 20 years in prison. The scandal has added to the challenges facing the SPAC merger, which has also seen Trump Media & Technology Group's stock under pressure due to significant losses and legal disputes.
April 04, 2024 | 1:45 am
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NEGATIVE IMPACT
Digital World Acquisition Corp. (DWAC) was involved in an insider trading scandal due to its planned merger with Trump Media & Technology Group. The scandal has brought negative attention to DWAC, potentially impacting investor confidence and the stock's short-term performance.
The insider trading scandal directly involves DWAC, as it was the entity planning to merge with Trump Media & Technology Group. Negative news, especially legal issues and insider trading allegations, typically harms investor sentiment and can lead to short-term stock price declines. Given the direct involvement and the negative press, it's likely that DWAC's stock could face downward pressure in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90