Financial executive faces trial for insider trading in connection with Trump media firm’s public offering

The trial of financial executive Bruce Garelick for insider trading kicked off in Manhattan federal court on Tuesday, with Assistant U.S. Attorney Elizabeth Hanft accusing him of tipping off his boss and friends about the merger between Digital World Acquisition Corp. and Trump Media & Technology Group in 2021.

Garelick’s defense attorney, Jonathan Bach, vehemently denied the allegations, claiming his client is innocent and did not commit any crime. Bach portrayed Garelick as an honest and ethical man, questioning why he would risk his reputation for a relatively small profit of $49,000.

Garelick’s co-defendants, Michael and Gerald Shvartsman, had already pleaded guilty to insider trading charges, admitting to making over $22 million illegally. The prosecution alleged that Garelick and those he tipped off invested millions in Digital World securities after learning of the potential merger with Trump Media.

Despite the high stakes and potential profits involved, Bach argued that Garelick was not closely connected to the other defendants and questioned his motive for participating in the scheme.

Prosecutor Hanft promised to present a strong case against Garelick, using witnesses, trading records, phone records, emails, and text messages to prove his guilt. The trial is expected to shed light on the inner workings of the financial industry and the consequences of insider trading.

As the trial unfolds, the public will be watching closely to see if justice is served and whether Garelick will be held accountable for his alleged actions.