Statement Of U.S. Attorney Damian Williams On The Conviction Of Bruce Garelick
Bruce Garelick, a former board member of Digital World Acquisition Corporation, was convicted of insider trading for using non-public information about DWAC's planned acquisition of Trump Media & Technology Group to trade and tip others.
Bruce Garelick, a former board member of Digital World Acquisition Corporation, was convicted by a unanimous jury of insider trading for exploiting non-public information about DWAC's planned merger with Trump Media & Technology Group. Despite agreeing to keep the acquisition details confidential, Garelick traded DWAC stock and tipped others to do the same, profiting illegally. The exact dollar amount of illicit gains was not specified in the press release.
Bruce Garelick, a former board member of Digital World Acquisition Corporation, was convicted by a unanimous jury of insider trading for exploiting non-public information about DWAC's planned merger with Trump Media & Technology Group. As a board member, Garelick had direct access to privileged information and had agreed to keep the acquisition details confidential. Despite this, Garelick traded DWAC stock and tipped others to do the same, profiting illegally. The U.S. Attorney's Office for the Southern District of New York emphasized the sophistication of the scheme and the breach of trust inherent in his actions. The conviction underscores the government's ongoing crackdown on insider trading in SPAC transactions and serves as a warning that insider trading, even by insiders with formal oversight roles, carries severe legal consequences. Garelick faces sentencing following the unanimous guilty verdict.
Extracted insights
- person Bruce Garelick
- company digital world acquisition corporation
- company group invited to invest in digital world acquisition corporation
- scheme_term insider trading
- company trump media & technology group
- Bruce Garelick was convicted of insider trading
- Bruce Garelick was part of group invited to invest in Digital World Acquisition Corporation
- Digital World Acquisition Corporation had intention of investing in Trump Media & Technology Group
- Bruce Garelick promised to keep secret DWAC's interest in acquiring Trump Media
- Bruce Garelick was given seat on DWAC's board
- Bruce Garelick violated law by using non-public information to trade and tip others
- U.S. Attorney Damian Williams made statement on conviction of Bruce Garelick
- Conviction occurred on May 9, 2024
Press Release Statement Of U.S. Attorney Damian Williams On The Conviction Of Bruce Garelick Thursday, May 9, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York U.S. Attorney Damian Williams said: “Bruce Garelick was part of a sophisticated group of individuals invited to invest in Digital World Acquisition Corporation (DWAC), a special purpose acquisition company that had raised funds with the intention of later investing in a target company, Trump Media & Technology Group, not yet known to the public. When he was given that opportunity, Garelick promised to keep the information about DWAC’s interest in acquiring Trump Media secret and not use it to trade in the stock market. Garelick was also given a seat on DWAC’s board, which gave him direct access to additional non-public information regarding the acquisition. As a unanimous jury has just found, Garelick blatantly violated the law by using the information that he obtained as an insider at DWAC to trade and tip others. Garelick’s federal conviction is yet another stark reminder that insider trading is always a losing bet.” Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated May 9, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-170
Press Release Statement Of U.S. Attorney Damian Williams On The Conviction Of Bruce Garelick Thursday, May 9, 2024 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York U.S. Attorney Damian Williams said: “Bruce Garelick was part of a sophisticated group of individuals invited to invest in Digital World Acquisition Corporation (DWAC), a special purpose acquisition company that had raised funds with the intention of later investing in a target company, Trump Media & Technology Group, not yet known to the public. When he was given that opportunity, Garelick promised to keep the information about DWAC’s interest in acquiring Trump Media secret and not use it to trade in the stock market. Garelick was also given a seat on DWAC’s board, which gave him direct access to additional non-public information regarding the acquisition. As a unanimous jury has just found, Garelick blatantly violated the law by using the information that he obtained as an insider at DWAC to trade and tip others. Garelick’s federal conviction is yet another stark reminder that insider trading is always a losing bet.” Contact Nicholas Biase, Lauren Scarff, Shelby Wratchford (212) 637-2600 Updated May 9, 2024 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 24-170