Trump Media investors charged with insider trading plead guilty to fraud [Video]

Two brothers who were charged with participating in an insider-trading scheme ahead of Trump Media and Technology Group’s public offering each pleaded guilty Wednesday to one count of securities fraud.

Michael and Gerald Shvartsman were charged with making illegal trades based on nonpublic knowledge that the special-purpose acquisition company Digital World Acquisition Corp. was going to acquire Trump Media and take it public, according to the indictment. Trump Media is Truth Social’s parent company.

“Michael and Gerald Shvartsman admitted in court that they received confidential, inside information about an upcoming merger between DWAC and Trump Media and used that information to make profitable, but illegal, open-market trades,” Damian Williams, the US attorney for the Southern District of New York, said in a statement.

The brothers were first arrested in June on charges of securities fraud. One count of such charges carries a maximum prison sentence of 20 years, according to the US Attorney’s Office …