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The Securities and Exchange Commission (SEC) has sued Patrick Orlando — the former chairman and CEO of the SPAC that helped take Donald Trump's media company public.
The SEC says Orlando "falsely represented" that his blank check company, Digital World Acquisition Corp. (DWAC), wasn't planning to merge with a specific target.
Orlando had actually been having "numerous lengthy discussions" with Trump Media & Technology Group (TMTG).
TMTG is the parent company of Trump's Twitter clone, Truth Social. The social media firm's shares have been ricocheting up and down since going public earlier this year.
In the suit, the SEC notes it imposed an $18 million civil penalty against DWAC in July 2023 for misrepresenting its negotiations with TMTG.
Neither Orlando's lawyers, DWAC, nor TMTG immediately responded to requests for comment from Business Insider.
The SEC says it's looking to prevent Orlando from engaging in similar conduct in the future and "disgorgement of all ill-gotten gains" — as well as prejudgment interest and civil penalties.
This isn't the first time the SEC has targeted entities associated with TMTG.
In May, the SEC charged TMTG's former auditor with "massive fraud." At the time, a TMTG spokesperson told Business Insider it "looks forward to working with new auditing partners."
