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Two brothers from Miami pleaded guilty on Wednesday in federal court in Manhattan for their role in a nearly $23 million insider-trading scheme surrounding the 2021 announcement that former President Donald J. Trump’s social media company planned to merge with a cash-rich shell company. Michael and Gerald Shvartsman, who had pleaded not guilty to securities fraud charges last summer, were set to go on trial later this month. But the brothers decided this week to forgo a trial, instead entering their guilty pleas before Judge Lewis J. Liman of U.S. District Court for the Southern District of New York. Each man pleaded guilty to one count of securities fraud. Michael Shvartsman, who ran a venture investment firm called Rocket One, used some of the proceeds from the scheme to buy a $14 million luxury yacht that he named Provocateur.
Persons: Donald J, Michael, Gerald Shvartsman, Judge Lewis J, Liman, Michael Shvartsman Organizations: Southern, of, Trump Media & Technology Group, Acquisition Corporation Locations: Miami, Manhattan, U.S, of New York
A few seconds later, a device resembling a snow maker began to rumble, then produced a great and deafening hiss. A fine mist of tiny aerosol particles shot from its mouth, traveling hundreds of feet through the air. The scientists wanted to see whether the machine that took years to create could consistently spray the right size salt aerosols through the open air, outside of a lab. If it works, the next stage would be to aim at the heavens and try to change the composition of clouds above the Earth’s oceans. That has pushed the idea of deliberately intervening in climate systems closer to reality.
Persons: Matthew Gallelli crouched Locations: San Francisco Bay, United States
But increasingly, the algorithms that undergird our digital lives are making questionable decisions that enrich the powerful and wreck the lives of average people. There's no reason to be scared of AI making decisions for you in the future — computers have already been doing so for quite some time. As human control diminished, the real-world consequences of these algorithms have piled up: Instagram's algorithm has been linked to a mental-health crisis in teenage girls. AdvertisementAcross the public and private sectors, we've handed the keys to a spiderweb of algorithms built with little public insight into how they make their decisions. While generative AI is just the newest extension of the algorithm, it poses a unique threat.
Persons: who's, They've, Matthew Gray, Sergey Brin, Larry Page, It's, Elon Musk, Cambridge Analytica, algorithmically, ProPublica, Quora, OpenAI's ChatGPT, you've, they'll, superintelligence, — simulacrums Organizations: Knight Capital, Companies, Yahoo, Stanford, Google, Spotify, Netflix, Revenue, Facebook, Twitter, Elon, European Union, Associated Press, Black, Microsoft, Eating Disorders Association Locations: Cambridge
Shares of former President Donald J. Trump’s social media company slumped more than 20 percent on Monday, as the fervor around the company’s debut on public markets last week appeared to subside. The sell-off cut the market value of Trump Media & Technology Group, which trades under the ticker “DJT,” by some $2 billion, to about $6.5 billion. The value of Mr. Trump’s majority stake in the company fell to about $3.7 billion, from over $6 billion at its peak last week. Still, shares of Trump Media were higher than they were immediately before the firm merged with a public shell company on Tuesday and began trading on the Nasdaq. Strong support for the merged company after it began trading pushed its market value as high as $10 billion at one point last week.
Persons: Donald J Organizations: Trump Media & Technology Group, Trump Media, Nasdaq
The usually busy spring housing market is underway, but mortgage demand isn't moving. Mortgage rates today are still about a half a percentage point higher than they were at this time last year, so recent borrowers have no incentive to refinance. "Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market," said Joel Kan, an MBA economist in a release. Mortgage rates have basically moved sideways to start this week and are unlikely to change until next week, when more economic data is set to be released. "If inflation falls a bit more or if the economy shows marked signs of weakening, it would tip the scales in favor of lower rates."
Persons: Joel Kan, Matthew Graham Organizations: Mortgage, Mortgage News Locations: Miami , Florida
Shares of former President Donald J. Trump’s social media company continued to surge on Wednesday, extending the gains on its first official trading session on the Nasdaq the day before. After another double-digit percentage gain, the parent of Truth Social approached $9 billion in market value, a windfall for insiders awarded shares in the company. The biggest beneficiary is Mr. Trump, the company’s largest shareholder, whose stake is worth more than $5 billion, on paper. No other shareholder comes close, according to regulatory filings, but many of Trump Media’s executives have seen their net worth swell this week, in some cases by many millions of dollars. Devin NunesTrump Media stake: More than $7 million
Persons: Donald J, Trump, Devin Nunes Organizations: Nasdaq, Truth Social, Trump Media’s, Devin Nunes Trump Media
On its first day on the Nasdaq stock exchange on Tuesday, Trump Media & Technology Group became such a high-flying stock that trading in its shares, under the ticker DJT, had to be briefly halted because of extreme volatility. The huge public debut for the company is especially important for its biggest shareholder, former President Donald J. Trump, whose 60 percent stake is now worth about $4.6 billion on paper. Wait, Trump Media is worth how much? After Tuesday’s trading, Trump Media had a market value of nearly $8 billion. Trump Media’s valuation is disproportionately high compared with other social media companies.
Persons: Donald J, Trump Organizations: Nasdaq, Trump Media & Technology Group, Trump Media, Mattel, Alaska Airlines, Western, Trump Locations: Western Union
There’s a new high-flying stock on Wall Street that some investors are eagerly piling into. His social media company, Trump Media & Technology Group, began trading on the Nasdaq on Tuesday, under the ticker DJT, and immediately surged in value, gaining 40 percent in early trading. Trump Media — the parent of Truth Social, the online platform that is Mr. Trump’s main megaphone for reaching supporters and going after critics — closed its merger with a cash-rich public shell company on Monday. The shell company’s stock had jumped higher ahead of the deal, in a frenzied trade that has fueled the company since it proposed the merger with Mr. Trump’s firm in 2021. Trump Media has an estimated market value well over $6 billion, more than established corporations like Alaska Airlines, Western Union and American Eagle Outfitters.
Persons: Donald J, Trump, , Trump’s Organizations: Trump Media & Technology Group, Nasdaq, Trump Media, Truth, Mr, Alaska Airlines, Western Union, American Eagle Outfitters
His social media company, Trump Media & Technology Group, will start trading on the Nasdaq on Tuesday, under the ticker DJT. Trump Media — the parent of Truth Social, the online platform that is Mr. Trump’s main megaphone for reaching supporters and going after critics — closed its merger with a cash-rich public shell company on Monday. The shell company’s stock surged ahead of the deal, in a frenzied trade that has fueled the company since it proposed the merger with Mr. Trump’s firm in 2021. The biggest beneficiary of the market action is Mr. Trump, who owns about 60 percent of Trump Media’s shares. At the close of trading on Monday, his stake was worth nearly $4 billion.
Persons: Donald J, Trump, , Trump’s Organizations: Trump Media & Technology Group, Nasdaq, Trump Media, Truth, Mr, Alaska Airlines, Western Union, American Eagle Outfitters, Trump Media’s
Former President Donald J. Trump’s social media company officially became a public company on Monday morning, and in the process the former president’s net worth has jumped by billions of dollars. A lawyer for Trump Media & Technology Group filed papers on Monday with the Delaware Division of Corporations, which said the company’s merger with a cash-rich shell company had formally closed. On Friday, shareholders of Digital World Acquisition Corp. approved the long-delayed merger with Trump Media by an overwhelming majority. Trump Media announced in a regulatory filing with the Securities and Exchange Commission that shares of the company would begin trading on the Nasdaq on Tuesday, under the stock symbol “DJT.”After the announcement, that stock jumped 24 percent to $45.60 a share. Trump Media is now valued at more than $5 billion — even though its flagship Truth Social digital platform took in just $3.3 million in revenue during the first nine months of 2023.
Persons: Donald J, Organizations: Trump Media & Technology Group, Delaware Division, Corporations, Digital, Trump Media, Securities and Exchange Commission, Nasdaq
Jeff Yass, the billionaire Wall Street financier and Republican megadonor who is a major investor in the parent company of TikTok, was also the biggest institutional shareholder of the shell company that recently merged with former President Donald J. Trump’s social media company. A December regulatory filing showed that Mr. Yass’s trading firm, Susquehanna International Group, owned about 2 percent of Digital World Acquisition Corp., which merged with Trump Media & Technology Group on Friday. It’s unclear if Susquehanna still owns those shares, because big investors disclose their holdings to regulators only periodically. But if it did retain its stake, Mr. Yass’s firm would become one of Trump Media’s larger institutional shareholders when it begins trading this week following the merger. Shares of Digital World have surged about 140 percent this year as the merger with the parent company of Truth Social, Mr. Trump’s social media platform, drew closer and Mr. Trump became the presumptive Republican nominee for president.
Persons: Jeff Yass, Republican megadonor, Donald J, Trump Organizations: Wall Street, Republican, Susquehanna International Group, Trump Media & Technology Group, Susquehanna, Trump, Truth
Patrick S. Nelson is a man under siege. An early player in the off-campus student housing business, Mr. Nelson built his property management company by raising money from big lenders and hundreds of wealthy individuals. But his business has soured in recent years, and Mr. Nelson — who has so far reneged on promises to pay back some of those partners — now faces more than a dozen lawsuits and a dogfight with a private equity firm. Mr. Nelson is on the hook for at least $115 million, which he has not paid despite escalating fines and interest and twice being held in civil contempt by judges over the alleged misuse of company money. His defiance has frustrated investors and lenders, and irritated some of the judges hearing those disputes.
Persons: Patrick S, Nelson, Nelson —, , , Melissa Crane, Justice Crane Organizations: Fortress Investment Group Locations: New York County, Utah, California
Ms. Grade was injured in a car accident in Marin County on Jan. 11. She spent several weeks in a hospital before she died there of complications related to her injuries, her brother Matthew Grade, a physician, said. The introverted Ms. Grade acknowledged that she was a most unlikely innkeeper. “If they put me in the front, I would be bad for business,” she said in a 2003 interview with The San Francisco Chronicle. She also admitted that when she opened her inn, Manka’s Inverness Lodge, she didn’t have the first idea about running an establishment.
Persons: Margaret Grade, Grade, Matthew Grade, , didn’t Organizations: Point, San Francisco Chronicle, Inverness Lodge Locations: California, San Francisco, Marin County, Inverness, , Inverness , Calif
Federal prosecutors said on Friday that Sam Bankman-Fried, the cryptocurrency mogul who was convicted of masterminding a multibillion-dollar fraud, should receive a prison sentence of 40 to 50 years. The prosecutors outlined the recommendation in a filing in U.S. District Court in Manhattan. Mr. Bankman-Fried’s sentencing hearing is scheduled for March 28, when Judge Lewis A. Kaplan will decide his fate. “Justice requires that he receive a prison sentence commensurate with the extraordinary dimensions of his crimes,” the prosecutors said in a 116-page sentencing memo to the judge. The federal probation department separately recommended a 100-year sentence for Mr. Bankman-Fried, 32, effectively a life sentence.
Persons: Sam Bankman, Bankman, Judge Lewis A, Kaplan Organizations: Locations: Manhattan
A For Sale sign is posted in front of a home for sale in San Marino, California on September 6, 2023. Mortgage rates swung slightly lower last week, fueling a significant jump in mortgage demand for the second straight week. Total application volume rose 7.1%, compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Applications for a mortgage to purchase a home rose 5% for the week but were still 11% lower than a year ago. Mortgage rates rose slightly at the start of this week, after a government report on consumer prices came in higher than expected Tuesday.
Persons: Mike Fratantoni, Matthew Graham Organizations: Mortgage, Mortgage News Locations: San Marino , California
The threat of a last-minute obstacle to the merger of former President Donald J. Trump’s social media company and a cash-rich shell company appears to have subsided. Two early founders of Trump Media & Technology Group reached a temporary truce with Mr. Trump’s company at a hearing on Saturday morning in Delaware Court of Chancery. The lawsuit, filed on Feb. 28 by a company controlled by Wes Moss and Andy Litinsky, had the potential to delay a scheduled March 22 vote by shareholders of Digital World Acquisition Corp. on the long-delayed merger with Trump Media. If shareholders approve the merger, it would give Trump Media more than $300 million in badly needed cash to keep operating. The deal would also boost Mr. Trump’s net worth by more than $3 billion, based on Digital World’s current stock price.
Persons: Donald J, , Wes Moss, Andy Litinsky Organizations: Trump Media & Technology Group, Truth, Digital, Trump Media Locations: Delaware Court
CNN —An Air Force employee has been charged with sharing classified information on a foreign dating website after prosecutors say he sent sensitive information about Russia’s war in Ukraine to a person who claimed to be a woman living in Ukraine. Slater then sent this classified information to someone who claimed to be a woman living in Ukraine, according to an indictment. Successfully?”The co-conspirator sent messages for nearly two months, according to the indictment, repeatedly probing Slater for more classified information. Slater faces one count of conspiracy to disclose national defense information and two counts of unauthorized disclosure of national defense information. Before working as a civilian in the Air Force, prosecutors say Slater rose to the rank of lieutenant colonel in the Army, retiring at the end of 2020.
Persons: David Franklin Slater, Slater, , Dave ”, Slater’s, , Slater “, Matthew G, Olsen, Eugene Kowel Organizations: CNN, An Air Force, Prosecutors, Strategic Command, Justice Department, Operations Center, Air Force, Army, Justice Department’s National Security Division, Offutt Air Force Base, Omaha Field Office Locations: Ukraine, Russian, Nebraska, Omaha
Lawsuits Threaten to Delay Trump Media’s Merger
  + stars: | 2024-03-01 | by ( Matthew Goldstein | ) www.nytimes.com   time to read: +1 min
A rash of lawsuits are threatening to stall a shareholder vote on the long-delayed merger of former President Donald J. Trump’s social media company and a cash-rich shell company. Two early founders of Trump Media & Technology Group have filed suit to preserve their ownership stake in the business, the parent company of the Truth Social online posting platform. The lawsuit, filed Wednesday under seal in Delaware Chancery Court by a partnership led by Wes Moss and Andy Litinsky, claims that Trump Media is trying to dilute its ownership stake in the company, of which Mr. Trump is a majority shareholder. The lawsuit seeks an expedited hearing in Delaware state court ahead of a March 22 vote by shareholders of Digital World Acquisition Corp. on its merger with Trump Media. Mr. Moss and Mr. Litinsky were contestants on Mr. Trump’s realty television show, “The Apprentice,” and went to him in January 2021 with the idea of creating a social media company.
Persons: Donald J, Wes Moss, Andy Litinsky, Trump, . Moss, Litinsky, Organizations: Trump Media & Technology Group, Trump Media, Digital, Trump’s realty Locations: Delaware Chancery, Delaware
7% interest rates hit weekly mortgage demand hard
  + stars: | 2024-02-28 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com   time to read: +2 min
Higher mortgage rates continue to hit demand from both current homeowners and potential homebuyers. Total mortgage application volume dropped 5.6% last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Fratantoni noted, however, that mortgage demand from buyers looking at newly built homes jumped 19% year over year in January. However, mortgage rates above 7% sure don't help," he added. Mortgage rates moved higher again to start this week, according to a separate survey from Mortgage News Daily.
Persons: Mike Fratantoni, Fratantoni, Matthew Graham Organizations: Mortgage, VA, FHA, Mortgage News
Since Sam Bankman-Fried was convicted of fraud last year, he has hired a new lawyer known for courtroom showmanship. A group of sympathetic law professors has pushed for a reappraisal of his actions. And his parents have turned for help to former employees of FTX, the collapsed cryptocurrency exchange he founded. From a federal detention center in Brooklyn, Mr. Bankman-Fried, 31, has continued to fight his case behind the scenes, as he argues for a lenient sentence and prepares to appeal his conviction. Since last year’s trial, Mr. Bankman-Fried has hired Marc Mukasey, who once represented former President Donald J. Trump, to oversee his sentencing, as well as a separate lawyer at the law firm Shapiro Arato Bach to handle the appeal.
Persons: Sam Bankman, Fried, Bankman, Lewis A, Kaplan, Marc Mukasey, Donald J, Trump, Shapiro Arato Bach, Joe Bankman, Barbara Fried Organizations: FTX, Stanford University Locations: Brooklyn, U.S, Manhattan, FTX
Sean Bailey, the longtime president of Walt Disney Studios Motion Picture Production, has decided to step down, amid investor pressure to reverse Disney’s box office cold streak. Instead, at least in the near term, he will produce a new “Tron” movie for Disney. Mr. Greenbaum has been running the Searchlight division with Matthew Greenfield since 2021. Over that time, Disney has been roiled by executive firings, restructuring efforts and shifting strategies for film distribution. The steady-handed Mr. Bailey, who is popular with stars and their agents, has helped provide stability.
Persons: Sean Bailey, Bailey’s, David Greenbaum, Bailey, Mr, Greenbaum, Matthew Greenfield, Oscar Organizations: Walt Disney Studios, Disney, Netflix, Searchlight Pictures, Mr, Searchlight Locations: Hollywood
Homebuyers are facing a worsening affordability situation with mortgage rates hovering around the highest levels in more than a decade. Mortgage rates shot higher Friday after a monthly government report on wholesale prices showed inflation is still persistent and hotter than most analysts had expected. Mortgage rates hit their last high in October but then fell sharply over the next two months, leveling out at around 6.6% in December. In February's report, builders said they expected mortgage rates to continue to moderate in the coming months. "And while mortgage rates still remain too high for many prospective buyers, we anticipate that due to pent-up demand, many more buyers will enter the marketplace if mortgage rates continue to decline this year."
Persons: Matthew Graham, Alicia Huey Organizations: Mortgage News, . Census, National Association of Home Builders Locations: Albany , California, Birmingham , Alabama
Lawyers representing victims of Jeffrey Epstein sued two of the disgraced financier’s closest advisers on Friday, accusing them of “aiding, abetting and facilitating” his sex trafficking of young women and teenage girls. The civil suit, filed in federal court in Manhattan, seeks class action status on behalf of Mr. Epstein’s many victims. It comes just a few months after two big banks agreed to pay hundreds of millions dollars to Mr. Epstein’s victims to settle lawsuits that claimed the banks had enabled his activities. The newest lawsuit seeks money damages from Mr. Epstein’s longtime personal lawyer, Darren Indyke, and his longtime accountant, Richard Kahn. The complaint was filed on behalf of one unidentified female victim of Mr. Epstein and a woman, Danielle Bensky, who said she was an aspiring dancer in 2004 when Mr. Epstein sexually abused her.
Persons: Jeffrey Epstein, Epstein’s, Darren Indyke, Richard Kahn, Epstein, Danielle Bensky, Bensky “ Locations: Manhattan
The Oscar-nominated documentary short “The Last Repair Shop” is coming to broadcast television this weekend. The 40-minute film will air Saturday on ABC owned television stations and select affiliates, the studios announced Thursday. “It’s not too much to say I owe my career to people like the four repair people in our film,” Bowers said. The broadcast push is a first for an Oscar nominated short documentary. “We are all so excited that The Last Repair Shop has the opportunity to connect with audiences across the country.”
Persons: It’s, Ben Proudfoot, Kris Bowers, , Bowers, “ King Richard ”, , Steve Bagmanyan, “ It’s, ” Bowers, Matthew Greenfield, David Greenbaum Organizations: ABC, Disney, Los Angeles Unified School District, Searchlight Pictures Locations: California, San Francisco , Los Angeles, Palm Springs, Fresno, Chicago, Houston, Philadelphia , New York, Raleigh, Durham
After a brief reprieve in December and January, mortgage rates are moving higher again, and that is taking its toll on mortgage demand. Total mortgage application volume fell 2.3% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. "That's because mortgage rates are climbing again and winter weather has been harsher than usual in much of the country, keeping some house hunters at home." Mortgage rates surged even higher Tuesday after a government report on inflation showed it was still stubbornly higher than expected. "The bond market (which underlies mortgage rates) reacted immediately and forcefully when the numbers came out.
Persons: Joel Kan, Chen Zhao, Bonds, Matthew Graham Organizations: Mortgage, Mortgage News Locations: Pico Rivera , California, Redfin
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