Trump’s Social Media SPAC Under Investigation by Biden’s SEC and FINRA Regulators

Democrat President Joe Biden’s federal regulators have launched investigations into a company liked to President Donald Trump’s new social media venture, according to reports.

The publicly traded SPAC that plans to merge with Trump’s new social media company confirmed in a new filing that the Securities and Exchange Commission and another regulator have asked for information about stock trading and communications with Trump’s company before the deal was announced.

The investigations are by the SEC and the Financial Industry Regulatory Authority (FINRA) and were disclosed in an 8-K filing with the SEC by Digital World Acquisition Corp.

DWAC said in the filing: “DWAC has received certain preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating.

“Specifically, in late October and in early November 2021, DWAC received a request for information from FINRA, surrounding events (specifically, a review of trading) that preceded the public announcement of the October 20, 2021 Merger Agreement.

“According to FINRA’s request, the inquiry should not be construed as an indication that FINRA has determined that any violations of Nasdaq rules or federal securities laws have occurred, nor as a reflection upon the merits of the securities involved or upon any person who effected transactions in such securities.”

“Additionally, in early November 2021, DWAC received a voluntary information and document request from the SEC which sought, inter alia, documents relating to meetings of DWAC’s Board of Directors, policies and procedures relating to trading, the identification of banking, telephone, and email addresses, the identities of certain investors, and certain documents and communications between DWAC and TMTG.

“According to the SEC’s request, the investigation does not mean that the SEC has concluded that anyone violated the law or that the SEC has a negative opinion of DWAC or any person, event, or security,” the company said.

Sen. Elizabeth Warren, D-Mass., asked the SEC to investigate possible securities violations involving the merger three weeks ago.

Warren said in her request that DWAC:

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“May have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information [SEC) filing and other public statements.”

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By David Hawkins

David Hawkins is a writer who specializes in political commentary and world affairs. He's been writing professionally since 2014.

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