US #SEC sues Digital World's former CEO alleging securities fraud.
The U.S. Securities and Exchange Commission on Wednesday sued Patrick Orlando, ex-chief of Digital World Acquisition Corp that helped former U.S. President Donald Trump's social media company go public, for #securities fraud.
Orlando allegedly misled investors by failing to disclose that his company had formulated a plan to acquire Trump Media & Technology Group Corp and was pursuing the acquisition before DWAC's initial public offering, according to the filing.
The SEC had said DWAC was found to have violated antifraud provisions of federal securities laws. In July last year, the company had agreed to a cease-and-desist order and to pay an $18 million penalty if it closed the #merger.