by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, April 19 – As the third of four insider trading prosecutions announced on June 29, 2023 by the US Attorney for the Southern District of New York, Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick were charged with making more than $22 million dollars in illegal profits by trading in securities of Digital World Acquisition Corporation based on MNPI about DWAC’s planned but not yet public business combination with a media company founded by former President Donald J. Trump.
On July 5, the case was assigned - wheeled out - to Judge Lewis J. Liman: "NOTICE OF HEARING as to Michael Shvartsman, Gerald Shvartsman, Bruce Garelick: An Arraignment and Initial Conference is scheduled for July 20, 2023 at 12:00 PM in Courtroom 15C, 500 Pearl Street, New York, NY 10007 before Judge Lewis J. Liman."
Inner City Press was there on July 20 and live tweeted, thread
On December 29 as part of omnibus pre-trial motions Shvartsman filed copies of DHS reports of investigation, including audio recordings of Shvartsman saying he would open an LLC in Belize which would buy assets... and ultimately provided funding for the 'Truth Social' media platform. It also names the agents who brought the arrested defendants to the Wilke D. Ferguson Jr. Federal Courthouse and the Marshals...
Late on March 15 Shvartsman through counsel wrote to Judge Liman alleging that the US used a Lawyer Informant to record him. Counsel identified the Zoom account used: John [at] lighthousetrust [dot] ch. A Google search of that shows a Lighthouse Trust General Counsel named John Ivsan at Linhart Seuss Ivsan LLP
More on X for Subscribers here & Substack here
On March 29 there was a conference, thread:
Defense: We contest their attempt to call cannabis bank account a prior bad act. The bank knew, and continued to process the payments.
AUSA: The bank was misinformed.
Judge: I'm not sure it's 404(b)
Defense: DWAC has sued Mr Orlando, in Florida, alleging he spoke publucly about merger with Trump Media Group. I had assumed Orlando would be a government witness against my client. So DOJ should ask DWAC, or their counsel at Wilmer Hale, their basis
On April 1, Judge Liman docketed that Michael Shvartsman and Gerald Shvartzman were scheduled to plead guilty on April 3.
They did, and Inner City Press is publishing Michael Shvartsman's plea agreement here - it had an April 2 deadline to get a one offense level point reduction, see here.
Bruce Garelick is still going to trial - and on April 19 his counsel filed a motion in limine to, among other things, preclude evidence of DWAC board members' and other witnesses' subjective opinions and understandings. The first example given is that "DWAC Board member Eric Swider told the government that 'all the targets of DWAC were confidential, including TMTG'... This evidence fails the basic test of Rule 401."
This case is US v. Shvartsman, et al., 23-cr-307 (Liman)
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
Feedback: Editorial [at] innercitypress.com
