Plea of Guilty
The Schvartsman brothers, both from Florida, each pleaded guilty to one count of securities fraud, which carry a maximum sentence of 20 years in prison, and sentencing is set for July 17.
After being invited to invest in Digital World Acquisition Corp, they signed non-disclosure agreements and learned confidential information about the merger between Digital World and Trump Media—and then bought “millions of dollars” of Digital World securities ahead of a public announcement of the merger.
Michael Shvartsman was the head of Rocket One Capital, and prosecutors say he also placed an associate on Digital World’s board of directors after investing in the company, who allegedly provided Michael and Gerald Shvartsman with non-public information on the merger.
Previous indictments have identified that board member as Bruce Garelick, also of Rocket One Capital, who is facing related charges but has not pleaded guilty and has a court date set for April 29.
CRUCIAL QUOTE
“I’ve made a terrible mistake,” Gerald Shvartsman reportedly said in court Wednesday.