The insider trading trial of financial executive Bruce Garelick began in Manhattan federal court on Tuesday. He is accused of tipping off his boss and friends about Digital World Acquisition Corp.’s merger with Trump Media & Technology Group, allowing them to make millions of dollars illegally. Garelick’s defense attorney, Jonathan Bach, asserted his client’s innocence, claiming that Garelick did not commit any crime and is an honest and ethical man. Garelick’s co-defendants, Michael and Gerald Shvartsman, have already pleaded guilty to insider trading charges, admitting to making over $22 million illegally.
Michael Shvartsman owned Rocket One Capital LLC, while Garelick served as the company’s chief investment officer. The indictment against the men did not implicate former President Donald Trump or Trump Media & Technology Group, which owns Truth Social. Prosecutors allege that Garelick and his associates invested millions in Digital World’s securities after learning about the potential merger with Trump Media. When the deal was announced, they sold their securities for $22 million in profits, with Garelick allegedly making $49,000 from trades. Bach questioned the logic of Garelick risking his reputation in the securities business for such a small amount of money, emphasizing that Garelick was not part of the same social circles as the others involved in the case.
According to Assistant U.S. Attorney Elizabeth Hanft, Garelick used information he learned as a member of DWAC’s board of directors to tip off others. Prosecutors plan to present witnesses, trading and phone records, as well as emails and text messages to support their case against Garelick. The trial is expected to shed light on the alleged insider trading scheme that enabled Garelick and his associates to profit from non-public information about the merger. Despite the guilty pleas of his co-defendants, Garelick maintains his innocence and will rely on his defense team to prove that he did not commit any wrongdoing.
As the trial unfolds, the focus will be on Garelick’s actions leading up to the announcement of the merger between Digital World Acquisition Corp. and Trump Media & Technology Group. The prosecution will aim to demonstrate how Garelick allegedly shared confidential information with his boss and friends, allowing them to make significant profits from their investments. While Bach contends that Garelick had no motive to engage in insider trading and risk his reputation, Hanft is confident that the evidence presented, including witness testimonies and electronic communications, will establish Garelick’s involvement in the illegal scheme. The outcome of the trial will determine whether Garelick will be found guilty of the insider trading charges brought against him.
