The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Patrick Orlando, the former CEO of Digital World Acquisition Corp. (DWAC), which merged with Trump Media (DJT), accusing him of securities fraud.
In a court filing in the District of Columbia, the SEC alleged that Orlando misled the public by stating in official filings that his company had no merger plans, while he was actively "engaged in numerous lengthy discussions" with representatives of Trump Media & Technology Group.
"Orlando knew these statements were false," the SEC's complaint declared.
Further details in the court filing revealed that Orlando's company raised $287.5 million during its initial public offering (IPO) in September 2021. By October, the company had announced a merger agreement with Trump Media, which operates the social media platform Truth Social, according to USA Today.
Digital World Acquisition Corp. finalized its merger with Trump Media & Technology Group in March.
The SEC has requested the court impose civil penalties and a permanent injunction against Orlando, as well as demand the return of any "ill-gotten gains."
