Title: Former Digital World Acquisition Corp Board Member Charged with Insider Trading in TMTG Deal

Introduction:
An architect of the plan to take Donald Trump’s media business public has been arrested on charges of insider trading. Bruce Garelick, a former board member of Digital World Acquisition Corp (DWAC), allegedly shared confidential information about the company’s merger with Trump Media & Technology Group (TMTG) while on a trip to Las Vegas. Prosecutors claim that Garelick helped his associates make nearly $23 million in illicit trades. This development adds another layer of scrutiny to the delayed merger between DWAC and TMTG, which briefly made DWAC one of the best-performing companies on the stock market.

In the first section of the original article, it is revealed that Bruce Garelick, who sat on Digital World Acquisition Corporation’s board of directors, was arrested on Thursday along with Michael Shvartsman and Gerald Shvartsman. They have been charged with insider trading by the US attorney’s office in Manhattan. The Securities and Exchange Commission has also filed a civil claim against the three businessmen. The charges stem from allegations that Garelick shared information about the progress of DWAC’s merger with TMTG with the Shvartsman brothers and encouraged them to make high-profit trades.

DWAC gained significant attention in October 2021 when it announced its planned merger with TMTG, the company behind Trump’s Truth Social media platform. The news caused DWAC’s stock price to soar, peaking at $175 per share from a starting value of about $10. However, regulatory investigations have delayed the completion of the merger. Prosecutors claim that Garelick and the Shvartsman brothers bought DWAC shares before the merger announcement and sold them shortly afterward, making substantial profits.

According to court documents, Garelick, who also served as chief strategy officer at Rocket One Capital, exchanged information about the merger progress with the Shvartsman brothers and encouraged them to invest in warrants that later saw a significant increase in value. Both brothers declined to comment on the charges. At this point, Garelick’s lawyer has not responded to requests for comment. The Securities and Exchange Commission cited text messages and emails from Garelick discussing potential dealings with Trump months before any official transaction was announced.

Conclusion:
The arrest and charges against Bruce Garelick shed further light on the regulatory scrutiny surrounding the DWAC and TMTG merger. Insider trading allegations add to the already complicated situation for the special purpose acquisition company that briefly had a remarkable surge in stock price. As the legal proceedings unfold, the focus will be on the extent of Garelick’s knowledge about the merger and the involvement of the Shvartsman brothers. The case serves as a reminder of the importance of insider trading regulations and the potential consequences for those who breach them.