Defendant challenges ‘judicial legislation’ in suit over insider trading

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted April 16, 2024 11:42 AM

Accused of insider trading, Michael Shvartsman argued this offense is “criminal law made by judges” that violates Article I of the U.S. Constitution and the non-delegation doctrine. Shvartsman allegedly made $18.2 million by using material non-public information to trade in shares of Digital World Acquisition Corp., the special purpose acquisition corporation that merged with Trump Media and Technology Group.Prohibitions on insider trading “do not appear on the face” of the general anti-fraud laws from which this offense …

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