Trump’s Truth Social got an $8 million cash injection that it never disclosed from an unknown source tied to a shady, porn-friendly bank in the Caribbean run by a Russian entrepreneur who has recently started buying up multimillion dollar houses in Miami
Trust linked to porn-friendly bank could gain a stake in Trump’s Truth Social
ES Family Trust offered $8 million in loans to Trump Media in an unusual deal criticized for conflicts of interest
By Drew Harwell, Matt Bernardini and Matei Rosca
May 13, 2023 at 7:00 a.m. EDT
An obscure financial entity with connections to a Caribbean-island bank that bills itself as a top payment service for adult entertainment sites would gain a sizable stake in former president Donald Trump’s media company if its merger deal proceeds, according to internal documents a company whistleblower has shared with federal investigators and The Washington Post.
Yet the role ES Family Trust would assume in Trump Media and Technology Group has never been officially disclosed to the Securities and Exchange Commission or to shareholders in Digital World Acquisition, the special purpose acquisition company, or SPAC, that has proposed merging with Trump’s company.
The companies also have not disclosed to shareholders or the SEC that Trump Media paid a $240,000 finder’s fee for helping to arrange the $8 million loan deal with ES Family Trust — or that the recipient of that fee was an outside brokerage associated with Patrick Orlando, then Digital World’s CEO.
Where ES Family Trust obtained the money, and who is behind the trust, remain publicly unknown, omissions that unnerved some of Trump Media’s top executives when they first learned of the loan in late 2021, according to Will Wilkerson, a whistleblower who at the time was the company’s executive vice president of operations.
Republican members of Congress and Trump supporters have complained for months that the SEC’s year-long delay in approving the merger has been fueled by anti-Trump bias and a “woke political agenda.” Trump Media’s primary business is the social media site Truth Social.
Co-founder of Trump’s media company details Truth Social’s bitter infighting
But the financial tangle offers a possible explanation for why the SEC has yet to approve the deal, said Michael Ohlrogge, a New York University law professor who studies SPACs. He called the deal unusual and rife with questionable decisions and potential conflicts of interest.
“This is definitely something that could cause problems,” he said. “At a minimum, if the SEC knew about this loan, it would insist that it be disclosed to [Digital World] shareholders. … And the company didn’t even do that.”
https://www.washingtonpost.com/technolo ... questions/
Tom Sas, the 40-year-old founder of a cloud-computing start-up in Chicago who says he twice voted for Trump for president, counts himself among the injured. In October 2021, when Digital World’s merger announcement sparked a stock-market frenzy, Sas bought nearly 1,200 shares at $70. Then, while listening to investing YouTubers predict that the stock could go to $300, he said, he felt a deep fear of missing out, saying, “FOMO hit me hard.”
He entered a market order to buy thousands more shares, expecting he would get them at $90, but the stock’s volatility led to a halt in trading. When the stock came back online, he said, his order was unexpectedly filled at the stock’s all-time high, $175 a share, draining his entire account.
All in all, he spent more than $516,000 in cash on Digital World shares, according to investment account documentation he provided. “This was basically my life savings,” he said, adding that he doesn’t own any property and drives a 2011 Ford Fiesta. Digital World shares now trade for about $13.
Sas said he was initially excited about the prospect of Truth Social being a “true, non-biased news outlet” and that he hopes “the people running Trump Media, if they see some things not going right, they get in there and fix it.” He echoed other supporters of Digital World and Trump in blaming a “biased” SEC for stalling the merger. “I’m left holding the bag now, hoping something goes through and it doesn’t collapse,” he said.
s titular Mama June in Fogbow's Favourite Show™ Mama June: From Not To Hot! Fogbow's Theme Song™ Edith Massey's "I Got The Evidence!" https://www.youtube.com/watch?v=C5jDHZd0JAg
x4Bless his heart.Sas said he was initially excited about the prospect of Truth Social being a “true, non-biased news outlet” and that he hopes “the people running Trump Media, if they see some things not going right, they get in there and fix it.”
Trump Media filed a $3.78 Billion lawsuit against the Washington Post last night, claiming they published defamatory articles about Truth Social, Donald Trump and CEO Devin Nunes. https://justthenews.com/sites/default/f ... 0.23_0.pdf
That's the couple who fought Nunes' law suit against the rest of the world (his small world)
He does not write in complete sentences. Its a jumble of thoughts and capitalization separated by exclamation marks in a staccato pattern. Everyone else writes all these connecting words whereas he does not. That's the big tell.sugar magnolia wrote: ↑Sun May 21, 2023 5:39 pm I'm guessing all his defamatory rants against the WaPo on twitter and TS and where ever else he posts are somehow.......different?
He, mtg and others. What in heavens name?sugar magnolia wrote: ↑Sun May 21, 2023 5:39 pm I'm guessing all his defamatory rants against the WaPo on twitter and TS and where ever else he posts are somehow.......different?
Trump’s Truth Social Faces More Trouble As SPAC Partner Admits Financial Statements Are Unreliable
Katherine Hamilton Forbes Staff
May 25, 2023,09:37am EDT Updated May 25, 2023, 11:49am EDT
Digital World Acquisition Corp., which plans to merge with the parent company of Donald Trump’s Truth Social platform, reported it made accounting errors in its last financial report, adding to financial reporting issues that have threatened to delist the company from Nasdaq, on top of two investigations that have delayed the deal with Trump.
KEY FACTS
- In a May 18 filing, Digital World Acquisition, a special purpose acquisition company (SPAC) that signed a deal in 2021 to merge with Trump’s media company to take Truth Social public, reported to the Securities and Exchange Commission it had made accounting errors in its annual financial report for 2022.
The year-end report can “no longer be relied upon,” Digital World told regulators, and the company is now developing a remediation plan to address the “material weakness” in its “internal control over financial reporting,” per the filing.
Digital World Acquisition also has not filed an earnings report for the first quarter of 2023, which is required for all companies listed on Nasdaq.
The company has until July 24 to submit a plan or be delisted from the stock exchange—the SEC can then accept or deny the company’s plan, and if it rejects it, Digital World can appeal.
In a public statement on Thursday addressing the SEC’s filing, Digital World said the delisting warning was “expected” and it was working “diligently” to file its earnings before July 24.
https://www.forbes.com/sites/katherineh ... delisting/
Trump's Truth Social troubles
Dan Primack
Jun 14, 2023 - Economy & Business
When former President Trump in October 2021 agreed to merge his fledgling social media company with a SPAC, it made tons of sense.
State of play: Twenty months later, with the deal mired in legal and regulatory limbo, it would make sense for both sides to walk away.
Why it matters: Truth Social is the presumptive Republican nominee's primary medium for written communication, as he hasn't returned to Twitter despite being reinstated by Elon Musk.
Why it made sense: This was a merger of convenience.
- There's also been a lot of money at stake.
- The acquiring SPAC, called Digital World Acquisition Corp. (DWAC), at one point had around a $3 billion market cap, while outside investors originally committed $1 billion to support the merger.
But, but, but: Shortly after the merger was announced, the NY Times reported that DWAC's CEO and Trump had discussed a potential merger before DWAC itself went public — which could have violated federal securities laws.
- Truth Social was still months away from launch in October 2021, let alone generating revenue or installing a management team. Merging with DWAC would help Trump capitalize his company without spending much of his own money, as has been his wont.
- DWAC was one of more than 500 SPACs launched in 2020 and 2021, most of which were indistinguishable from one another. Truth Social was a way to stand out, plus attract nontraditional retail investors who were likely to remain loyal.
- Soon there was an investigation by the U.S. Securities and Exchange Commission, and then by the U.S. Justice Department.
- All DWAC directors all received subpoenas by last July for a federal grand jury in New York.
- All of this left the merger hanging, unable to receive SEC approval to proceed. DWAC did manage to secure an extension through to this September, but around a quarter of that $1 billion in outside financing has already dissipated.
https://www.axios.com/2023/06/14/trumps ... l-troubles
Yes.
X 4 X 32 Three Charged With Illegally Trading Ahead of Trump Media Merger
The arrests came after an investigation into trading in the securities of Digital World Acquisition Group, which merged with former President Donald
By Matthew Goldstein
June 29, 2023 Updated 11:19 a.m. ET
Federal authorities charged three men on Thursday with taking part in a scheme to make $22 million in illegal profits by trading ahead of the proposed merger of former President Donald J. Trump’s social media company with a cash-rich public shell company in fall 2021.
The arrests came after a lengthy investigation by federal prosecutors in Manhattan into trading in the securities of Digital World Acquisition Group, a so-called special purpose acquisition company. The inquiries had focused on a small Miami-based venture capital firm, Rocket One Capital, led by Michael Shvartsman.
Federal prosecutors in Manhattan said they charged Mr. Shvartsman and his brother Gerald, who owns an outdoor furnishing store in Miami, in connection with the alleged improper trading. Also charged was Bruce Garelick, a former hedge fund manager who had worked at Rocket One. He also was a board member of Digital World before resigning last summer.
None of the individuals arrested are said to have any connection to Mr. Trump or anyone associated with Trump Media & Technology Company, the parent company of his right-leaning social media platform, Truth Social, said one person briefed on the matter, who spoke on condition of anonymity because he was not authorized to speak publicly. Trump Media is supposed to merge with Digital World.
https://www.nytimes.com/2023/06/29/busi ... erger.html
Gift article
The arrests came after a lengthy investigation by federal prosecutors in Manhattan into trading in the securities of Digital World Acquisition Group, a so-called special purpose acquisition company. The inquiries had focused on a small Miami-based venture capital firm, Rocket One Capital, led by Michael Shvartsman.
Federal prosecutors in Manhattan said they charged Mr. Shvartsman and his brother Gerald, who owns an outdoor furnishing store in Miami, accusing them of improper trading. Also charged was Bruce Garelick, a former hedge fund manager who had worked at Rocket One. He too was a board member of Digital World before resigning last summer.
None of the individuals arrested are said to have any connection to Mr. Trump or anyone associated with Trump Media & Technology Company, the parent company of his right-leaning social media platform, Truth Social, said one person briefed on the matter, who spoke on condition of anonymity because he was not authorized to speak publicly. Trump Media is supposed to merge with Digital World.
Federal prosecutors in Manhattan said the three men had violated nondisclosure agreements not to discuss the pending deal with anyone or to buy additional securities on the basis of nonpublic information about the deal. Authorities said the men also tipped off others about the impending deal between Digital World and Trump Media during a trip to Las Vegas and on other occasions. In the indictment, prosecutors said Mr. Garelick was added as a board member to Digital World in July 2021 because of Mr. Shvartsman’s large investment in the SPAC before its initial public offering.
s titular Mama June in Fogbow's Favourite Show™ Mama June: From Not To Hot! Fogbow's Theme Song™ Edith Massey's "I Got The Evidence!" https://www.youtube.com/watch?v=C5jDHZd0JAg
Ahem. The charge was for insider trading. They haven't resolved the issue about whether there was illegal coordination between the acquirer and the target. Of course there was; they just haven't found it yet. But I'm sure they will get caught since these fools are stupid enough to think they could brazenly flout the rules in public and not get caught.orlylicious wrote: ↑Thu Jun 29, 2023 5:22 pm Many of the messages are saying this is GREAT!! for DWAC because now the SEC can clear the merger.
This stock has the biggliest, best beta of any stock ever. Big burly traders with tears in their eyes are coming up to Trump and thanking him from the bottom of their hearts for giving them the beta they need to outperform the market. Too bad all the beta is negative, and positive beta is what most investors would prefer in a market like we've had the last few years.orlylicious wrote: ↑Thu Jun 29, 2023 5:22 pm I'm sure JPC will agree this is a beautiful chart, maybe the best chart ever in the world. It's a screaming buy
