Trump company merger prompts $23 million insider trading probe of Russia-linked bank owner

An insider trading investigation involving a merger between a Miami-based company Digital World Acquisition Corporation (DWAC) group and Trump Media & Technology Group Corp (TMTG) has exposed the nearly $23 million windfall pocketed by Russian-American businessman Anton Postolnikov, according to The Miami Herald.

Postolnikov owns a Caribbean bank servicing the porn industry and loaned $8 million to Trump's media company which is the parent of Truth Social, according to several news reports.

The Russian American owns homes on the exclusive Fisher Island and is the nephew of a former high-ranking Russian government official who served under Russian President Vladimir Putin, according to the outlet.

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Allegations of insider trading came to light in court documents filed in Manhattan's federal court as part of a securities fraud case charging three South Florida men, according to the Securities and Exchange Commission (SEC) release.

They are Michael Shvartsman, 52, of Sunny Isles Beach; Gerald Shvartsman, 46, of Aventura; and Bruce Garelick, 54, of Fort Lauderdale and Rocket One Capital LLC.

So far, Postolnikov, 41, has not been charged with any wrongdoing. However, The Herald reported that more charges could be coming based on recent filings in the case.

Though, it remains unclear if Postolnikov would be added as a defendant in the case.

But his name has surfaced in FBI search warrant applications filed in the insider trading case showing that agents were probing his relationship with the three defendants and closely looking at his trades before and after the October 2021 merger, according to the SEC.

Former President Donald Trump is the chairman of TMTG and he remains the leading candidate to claim the GOP presidential nomination. He has also not been suspected of any foul play related to this case.

In an April 2023 financial disclosure, The Herald reported that Trump confirmed he owns 90% of the company and estimated its worth to be between $5 million and $25 million.

Last year, DWAC agreed to settle for $18 million with the SEC should the merger happen, and admitted to fraudulently misleading investors about its merger plans with Trump Media.