In a significant development, financial executive Bruce Garelick was found guilty on all charges of enabling illegal trading, resulting in profits exceeding $22 million. The verdict was delivered in Manhattan federal court on Thursday, leaving Garelick visibly distraught as he wiped his face repeatedly. Garelick, who served on the board of Digital World Acquisition Corp. (DWAC), was convicted of tipping off others about the impending merger between DWAC and Trump Media & Technology Group, the media company owned by former President Donald Trump.
Garelick’s co-defendants had previously pleaded guilty, acknowledging their involvement in the illegal scheme. The sentencing for Garelick is scheduled for September 12, while he remains free on bail. It is important to note that the indictment did not implicate Trump or Trump Media & Technology Group in the insider trading case. Trump is currently seeking the Republican nomination for the presidency and his media company, which owns the Truth Social platform, began trading on the NASDAQ stock market in March 2022.
During his defense testimony, Garelick maintained that he had no prior knowledge of the merger when he purchased DWAC securities, which eventually resulted in nearly $50,000 in profits. He asserted that he had followed the law by not sharing any confidential information with others. However, under cross-examination, a prosecutor confronted Garelick with his own statement after the merger announcement, where he had mentioned, “We made $20 million dollars.” Garelick admitted to making that statement, confirming its accuracy.
The events leading to the charges occurred in 2021 when Garelick held the position of Chief Investment Officer at Rocket One Capital LLC, a venture capital firm based in New York. The firm was owned by Michael Shvartsman of Sunny Isles Beach, Florida. Both Michael Shvartsman and his brother, Gerald Shvartsman of Aventura, Florida, pleaded guilty to insider trading charges, acknowledging their illegal gains of over $22 million. Their sentencing is scheduled for July.
In response to a surge in crime attributed to a nearby homeless encampment, a city…
The trial of nine Egyptian men accused of criminal responsibility in the Pylos shipwreck, which…
The life of Shani Louk, a 22-year-old Israeli woman brutally killed by Hamas terrorists during…
Auburn running back Brian Battie is currently in critical condition after being shot over the…
A man suspected of firing a gun in San Jose on Sunday has been critically…
As the hush money trial involving former President Donald Trump approaches its conclusion, his legal…
View Comments
This case highlights the importance of ethical behavior and compliance in the financial industry. It serves as a reminder that individuals in positions of power and responsibility must adhere to strict regulations and ethical standards to maintain the integrity of the financial markets.
This real-world application emphasizes the need for robust internal controls and oversight within financial institutions. It is crucial for companies to implement comprehensive compliance programs that educate employees on the legal and ethical boundaries of their work. By doing so, they can prevent illegal activities and protect their reputation.
Furthermore