The U.S. Securities and Exchange Commission (SEC) filed a lawsuit on Wednesday against Patrick Orlando, the former CEO of Digital World Acquisition Corp, alleging securities fraud. Digital World Acquisition Corp gained attention for facilitating the initial public offering of former U.S. President Donald Trump’s social media venture.
According to court filings in the District of Columbia, the SEC accused Orlando of violating securities regulations by making false and misleading statements during his tenure at the blank-check company. The commission claimed that Orlando misled investors by withholding information about Digital World’s plans to acquire Trump Media & Technology Group Corp before Digital World’s IPO.
In March, Digital World successfully merged with Trump Media & Technology Group, the entity behind Truth Social, a social media platform endorsed by Trump. This merger followed earlier regulatory scrutiny in July, when DWAC settled charges of making “material misrepresentations” to investors. The SEC had previously cited DWAC for violating federal securities laws’ antifraud provisions, resulting in a cease-and-desist order and an $18 million penalty agreement contingent on finalizing the merger.
