A trial has commenced for a financial executive accused of insider trading related to the merger of Digital World Acquisition Corp. with Trump Media & Technology Group. The executive, Bruce Garelick, allegedly tipped off his boss and associates about the merger, enabling them to make illegal profits. Garelick's defense attorney maintains his innocence, stating that he did not commit any crime and describing him as an honest and ethical individual.
Co-defendants Michael Shvartsman and Gerald Shvartsman have already pleaded guilty to insider trading charges, admitting to making over $22 million illegally. Michael Shvartsman, who owned a venture capital firm, and Garelick, who served as the company's chief investment officer, were involved in the illicit trading activities.
The indictment did not implicate former President Donald Trump or Trump Media & Technology Group in the insider trading scheme. The prosecution alleges that Garelick and his associates invested millions in Digital World securities after learning about the potential merger with Trump Media, resulting in substantial profits upon the deal's announcement.
While Garelick is accused of making $49,000 from the trades, his attorney questions the motive behind risking his established reputation in the securities industry for such a relatively small amount. The defense emphasizes that Garelick was not closely associated with the other individuals involved in the case and asserts that he followed all rules and regulations.
Prosecutors plan to present witnesses, trading records, phone logs, emails, and text messages to support their case against Garelick. The trial is ongoing in Manhattan federal court, with the outcome yet to be determined.
