Jul 18, 2024 - 19:53
By cnbc.com

SEC sues Trump Media SPAC ex-CEO Patrick Orlando for alleged fraud

The U.S. Securities and Exchange Commission sued the former CEO of the blank-check company that merged with Trump Media.
The SEC accused that ex-CEO, Patrick Orlando, of lying about his firm's plans to combine with Donald Trump's social media startup.
Trump Media and Digital World completed their lengthy public merger in March, allowing the company behind the Truth Social platform to trade on the Nasdaq under the stock ticker DJT.

The U.S. Securities and Exchange Commission sued the former CEO of the blank-check company that merged with Trump Media, accusing him of lying about his firm's plans to combine with Donald Trump's social media startup.

Patrick Orlando allegedly lied in public filings when he said his company, Digital World Acquisition Corp., had not contacted any possible merger targets and had no specific merger plans, the commission said in the lawsuit filed Wednesday night in Washington, D.C., federal court.

"Orlando knew these statements were false," the SEC's civil complaint alleged.

"He had personally engaged in numerous lengthy discussions" with Trump Media's representatives, and he had targeted the company "for months," the SEC alleged.

The SEC asked the court to force Orlando to give up "all ill-gotten gains" as a result of his alleged violations, along with civil penalties and a permanent injunction barring his from engaging in that conduct.

Orlando and Trump Media did not immediately respond to CNBC's requests for comment.

Trump Media and Digital World completed their lengthy public merger in March, allowing the company behind the Truth Social platform to trade on the Nasdaq under the stock ticker DJT.