Federal authorities charged three males on Thursday with participating in a scheme to make $22 million in unlawful income by buying and selling forward of the proposed merger of former President Donald J. Trump’s social media firm with a cash-rich public shell firm in fall 2021.

The arrests got here after a prolonged investigation by federal prosecutors in Manhattan into buying and selling within the securities of Digital World Acquisition Group, a so-called particular function acquisition firm. The inquiries had centered on a small Miami-based venture capital firm, Rocket One Capital, led by Michael Shvartsman.

Federal prosecutors in Manhattan mentioned they charged Mr. Shvartsman and his brother Gerald, who owns an out of doors furnishing retailer in Miami, in reference to the alleged improper buying and selling. Also charged was Bruce Garelick, a former hedge fund supervisor who had labored at Rocket One. He additionally was a board member of Digital World earlier than resigning final summer time.

None of the people arrested are mentioned to have any connection to Mr. Trump or anybody related to Trump Media & Technology Company, the father or mother firm of his right-leaning social media platform, Truth Social, mentioned one individual briefed on the matter, who spoke on situation of anonymity as a result of he was not licensed to talk publicly. Trump Media is meant to merge with Digital World.

Grant Smith and Robert Buschel, legal professionals for the brothers, didn’t return a request for remark. Carl Schoeppl, a lawyer for Mr. Garelick, didn’t return a request for remark.

A Digital World government didn’t reply to a request for remark. A spokeswoman for Trump Media additionally didn’t reply to a request for remark.

Rocket One and a number of other individuals related to Michael Shvartsman had invested in Digital World about two months earlier than the SPAC went public. Soon after the group invested, some workers at Rocket One started to routinely check with Digital World because the “Trump SPAC,” The New York Times previously reported.

Federal prosecutors in Manhattan mentioned the three males had violated nondisclosure agreements to not focus on the pending cope with anybody or to purchase further securities on foundation of nonpublic details about the deal. Authorities mentioned the boys additionally tipped off others in regards to the impending deal between Digital World and Trump Media throughout at journey to Las Vegas and on different events.

In the indictment, prosecutors mentioned Mr. Garelick was added as a board member to Digital World in July 2021 due to Mr. Shvartsman’s giant funding within the SPAC earlier than its preliminary public providing.

The investigation into improper buying and selling in securities of Digital World is only one of a number of inquiries which have held up the merger with Trump Media. The clock is ticking on getting the deal accomplished earlier than Sept. 8, the day Digital World can be required beneath its company constitution to liquidate and return to present shareholders the $300 million it raised in its I.P.O.

The Securities and Exchange Commission has been investigating whether or not preliminary merger discussions between Digital World and Trump Media, which occurred earlier than the SPAC went public in September 2021, had violated federal securities legal guidelines. The S.E.C., which additionally had been investigating the improper buying and selling in Digital World securities, has not but signed off on the proposed merger.

SPACs, that are set as much as elevate cash from traders after which discover a firm to purchase, should not allowed to carry critical merger discussions earlier than they go public. Federal authorities are attempting to find out if Digital World’s talks with Trump Media have been substantive enough that they need to have been disclosed earlier than the SPAC offered shares to the general public.

The S.E.C. filed a associated lawsuit on Thursday towards the brothers and Mr. Garelick over the improper buying and selling.

Executives of Trump Media and some shareholders of Digital World have accused the S.E.C. of utilizing the investigations as an excuse to expire the clock by not approving the merger. The deal is seen as important in offering money to Trump Media and Truth Social, which has emerged as the previous president’s most important megaphone over the previous yr.