Former CEO of Digital World sued by US SEC on charges of securities fraud

The US Securities and Exchange Commission filed a securities fraud lawsuit against Patrick Orlando, the former CEO of Digital World Acquisition Corp., which helped former US President Donald Trump’s social media company go public.

Patrick Orlando, the former CEO of Digital World Acquisition Corp., which assisted former US President Donald Trump’s social media company in going public, was sued by the US Securities and Exchange Commission on Wednesday for securities fraud. The SEC said in a filing with the District of Columbia Court that Orlando violated securities laws by making false and deceptive claims while heading the blank-check company.

According to the petition, Orlando misled investors by omitting to reveal that his business had developed a plan to purchase Trump Media & Technology Group Corp. and was pursuing the acquisition prior to DWAC’s initial public offering. The Trump-backed social media platform Truth Social is owned by Digital World, which finalized its merger with Trump Media & Technology Group (DJT.O.) in March. DWAC settled regulatory charges of making “material misrepresentations” to investors in July of last year.

According to the SEC, DWAC was found to have broken federal securities laws’ antifraud provisions. The business consented to a cease-and-desist order and to pay a $18 million fine in the event that the merger is completed.

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