Sketchy funding for Trump's Truth Social was hidden from SEC and investors: report
According to a new report from the Washington Post, questions are being raised about an "obscure financial entity" with ties to an off-shore bank that is deeply involved in the merger between Trump Media and Technology Group and Digital World Acquisition surrounding the former president's Truth Social media platform.
The Post is reporting that the SEC and the investors were kept out of the loop and were not informed that ES Family Trust -- with ties to a "Caribbean-island bank that bills itself as a top payment service for adult entertainment sites"-- has $8 million invested in the venture.
As the Post is reporting, "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."
That has led to new questions about where that money came from -- and that some Truth Social execs were blindsided when they learned about it.
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"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," the report states.
According to New York University law professor Michael Ohlrogge, "This is definitely something that could cause problems,” adding, “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.”
You can read more here.