July 18, 2024
The former chief executive of the company that helped Donald Trump‘s social media company go public is being sued for securities fraud.
The U.S. Securities and Exchange Commission (SEC) has accused Patrick Orlando, former CEO of shell company Digital World Acquisition Corp, of breaking rules by issuing false and misleading statements.
In its filing with a District of Columbia court on Wednesday, the SEC said Orlando had failed to disclose to investors that DWAC had formed a plan to acquire Trump Media & Technology Corp.
The SEC’s complaint alleges that Orlando, in his capacity as chief executive and chairman of Digital World, falsely represented that the company had no prior discussions or contacts with potential merger targets.
The SEC alleges that Orlando had in fact engaged in numerous discussions with “representatives of Trump Media” and had targeted it for a merger for months. The SEC contends that these actions constitute fraudulent conduct and materially false statements in filings made with the Commission.
The SEC launched its investigation in December 2021, after reports that Orlando personally met with Former President Donald Trump without informing Digital World investors he intended to initiate the merger.
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Bugs Marlowe