The SEC has charged the former CEO of Trump Media SPAC with fraud.
Patrick Orlando, the former CEO of a blank-check company merging with Trump Media, was sued by the U.S. Securities and Exchange Commission (SEC) for lying about the company’s merger plans with Donald Trump’s social media startup.
The SEC filed the lawsuit in the U.S. District Court for the District of Columbia on Wednesday night, alleging that Mr. Orlando lied in public filings when he said his company Digital World Acquisition had no contacts with any potential merger targets and no specific merger plans.
The SEC’s civil complaint states: “Orlando knew these statements were false.”
The SEC’s complaint alleges that “he personally engaged in multiple lengthy discussions with representatives of Trump Media” and that “he had targeted the company for months.”
The SEC is seeking to force Mr. Orlando to give up any “ill-gotten gains” from the alleged wrongdoing, as well as civil penalties and a permanent ban from engaging in the conduct.
Mr. Orlando and the Trump Media Group did not immediately respond to requests for comment.
The Trump Media and Digital World merged on the Nasdaq in March 2024 under the ticker symbol DJT.