US SEC sues Digital World’s former CEO alleging securities fraud
2024.07.17 19:33
(Reuters) – The U.S. Securities and Exchange Commission on Wednesday sued Patrick Orlando, ex-chief of Digital World Acquisition Corp that helped former U.S. President Donald Trump’s social media company go public, for securities fraud.
In a filing with the court of District of Columbia, the SEC said Orlando broke rules concerning securities by issuing false and misleading statements while he led the blank-check firm.
Orlando misled investors by failing to disclose that his company had formulated a plan to acquire Trump Media & Technology Group Corp and was pursuing the acquisition before DWAC’s initial public offering, according to the filing.
In March, Digital World completed its merger with Trump Media & Technology Group that owns social media platform Truth Social, which is backed by Trump.
In July last year, DWAC had settled regulatory charges of “material misrepresentations” to investors.
The SEC had said DWAC was found to have violated antifraud provisions of federal securities laws. The company had agreed to a cease-and-desist order and to pay an $18 million penalty if it closes the merger.
