SEC v. Bruce Garelick; Michael Shvartsman; Rocket One Capital LLC; and Gerald Shvartsman, No. LR-26477, Southern District of New York (Feb. 5, 2026) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26477 / February 5, 2026Securities and Exchange Commission v. Bruce Garelick, Michael Shvartsman, Rocket One Capital LLC, and Gerald Shvartsman, No. 23-cv-5567 (PGG) (S.D.N.Y. filed June 29, 2023)SEC Obtains Final Consent Judgments Against Two Florida Residents Charged with Insider Trading in DWAC SecuritiesOn January 28, 2026, the U.S. District Court for the Southern District of New York entered final judgments against brothers Gerald Shvartsman and Michael Shvartsman in the SEC’s civil enforcement action against them.The SEC’s complaint, filed on June 29, 2023, alleged that the Shvartsmans purchased securities of Digital World Acquisition Corporation (DWAC) on the basis of material nonpublic information about the progress of DWAC’s merger negotiations with Trump Media & Technology Group Corp. According to the complaint, shortly after the merger was announced, the price of DWAC stock increased, and Gerald Shvartsman and Michael Shvartsman sold their DWAC securities for net profits of $4,640,325.25 and $18,269,042.98, respectively.The final judgments permanently enjoin the Shvartsmans from further violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment as to Gerald Shvartsman requires him to pay disgorgement of $4,640,325.25, with his obligation to make this payment deemed satisfied by the forfeiture order entered against him in the parallel criminal matter, United States v. Gerald Shvartsman, No. 23-cr-307-LJL (S.D.N.Y.). The judgment as to Michael Shvartsman imposes an officer and director bar and requires him to pay disgorgement of $18,269,042.98, with his obligation to make this payment deemed satisfied by the previous payment of this amount in accordance with the forfeiture order entered against him in the parallel criminal matter, United States v. Michael Shvartsman, No. 23-cr-307-LJL (S.D.N.Y.). The SEC also voluntarily dismissed the action against Rocket One Capital LLC.The SEC’s litigation was conducted by John Timmer, Andrew McFall of the Enforcement Division’s Market Abuse Unit, and Lindsay S. Moilanen of the SEC’s New York Regional Office and supervised by Melissa Armstrong, Joseph Sansone of the Market Abuse Unit, and Thomas P. Smith, Jr. of the New York Regional Office.

U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 26477 / February 5, 2026Securities and Exchange Commission v. Bruce Garelick, Michael Shvartsman, Rocket One Capital LLC, and Gerald Shvartsman, No. 23-cv-5567 (PGG) (S.D.N.Y. filed June 29, 2023)SEC Obtains Final Consent Judgments Against Two Florida Residents Charged with Insider Trading in DWAC SecuritiesOn January 28, 2026, the U.S. District Court for the Southern District of New York entered final judgments against brothers Gerald Shvartsman and Michael Shvartsman in the SEC’s civil enforcement action against them.The SEC’s complaint, filed on June 29, 2023, alleged that the Shvartsmans purchased securities of Digital World Acquisition Corporation (DWAC) on the basis of material nonpublic information about the progress of DWAC’s merger negotiations with Trump Media & Technology Group Corp. According to the complaint, shortly after the merger was announced, the price of DWAC stock increased, and Gerald Shvartsman and Michael Shvartsman sold their DWAC securities for net profits of $4,640,325.25 and $18,269,042.98, respectively.The final judgments permanently enjoin the Shvartsmans from further violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment as to Gerald Shvartsman requires him to pay disgorgement of $4,640,325.25, with his obligation to make this payment deemed satisfied by the forfeiture order entered against him in the parallel criminal matter, United States v. Gerald Shvartsman, No. 23-cr-307-LJL (S.D.N.Y.). The judgment as to Michael Shvartsman imposes an officer and director bar and requires him to pay disgorgement of $18,269,042.98, with his obligation to make this payment deemed satisfied by the previous payment of this amount in accordance with the forfeiture order entered against him in the parallel criminal matter, United States v. Michael Shvartsman, No. 23-cr-307-LJL (S.D.N.Y.). The SEC also voluntarily dismissed the action against Rocket One Capital LLC.The SEC’s litigation was conducted by John Timmer, Andrew McFall of the Enforcement Division’s Market Abuse Unit, and Lindsay S. Moilanen of the SEC’s New York Regional Office and supervised by Melissa Armstrong, Joseph Sansone of the Market Abuse Unit, and Thomas P. Smith, Jr. of the New York Regional Office.