Trump media company gets summons in federal criminal investigation of SPAC transactions

Former US President Donald Trump will give a keynote speech at the Faith & Freedom Coalition at the annual Road To Majority Policy Conference on June 17, 2022 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.

Seth Herald | Getty Images

Donald Trump’s media company was summoned by a federal grand jury in connection with a criminal investigation, according to a company to be merged with the former president’s company.

Digital World Acquisition Corp..Said in Friday filing The Trump Media and Technology Group received a subpoena from a Manhattan grand jury on Thursday. Trump also received a subpoena for civil investigations from the Securities and Exchange Commission on Monday, DWAC said.

DWAC also said that some current and former TMTG employees have also recently received a grand jury subpoena. Later Friday, TMTG said it would comply with the subpoena, saying that neither of the subpoenas was directed at the subpoena, Trump, or former US lawmaker Devin Nunes.

The application was filed a few days after the DWAC stated that a government investigation was possible. Delay or even prevent Merger with Trump’s newly established company, including Truth Social, a social media app aimed at replacing Twitter.

Neither TMTG nor Trump’s spokeswoman immediately responded to CNBC’s request for comment.

The Justice Department and the SEC, which regulates the stock market, are investigating transactions between DWAC and Trump Media. By merging with DWAC, a special purpose acquisition company or a type of shell company called SPAC, Trump’s company will have potentially billions of dollars in access to the public stock market.

Trump said when hundreds of supporters attacked the U.S. Capitol to overturn Joe Biden’s victory in the presidential election months after Twitter banned his tweets on January 6, 2021. Established Truth Social.

Nunes, CEO of Trump Media, is one of the Republican’s most ardent supporters of the former president. Trump is also considering whether to run for president in the 2024 election.

Trump continues to spread the lie that the election was stolen from him. Allegations of his involvement in the January 6 riots have been investigated by the House Select Commission, which has accused the former president of being at the center of a multifaceted plot to prevent a change of power to Biden.

Early criticisms of the Trump-DWAC deal came from Senator Elizabeth Warren, D-Mass. When asking for her investigation, she wrote: November SEC Chair Gary GenslerDWAC said, “As early as May 2021, we may have committed a securities breach by having a private and private discussion about the merger, but this information is [SEC] Filing and other official statements. “

DWAC’s share price is well off the highs, closing at $ 24.20 on Friday. After the announcement of a deal with Mr. Trump’s group, stock prices soared above $ 90 in October.

Monday’s DWAC Securities filing On June 16th, I learned that each member of the board received a subpoena from the same grand jury.

The grand jury requested a document similar to what the SEC had already requested as part of a civil investigation, DWAC said. The company itself received a subpoena a week ago with similar requests, as well as other requests related to rocket one capital related communications, individuals, and information.

DWAC also revealed on Monday that board member Bruce J. Garelick told management that he would leave the board the previous week. “It wasn’t the result of a disagreement over the operation, policies and practices of Digital World,” Galerick said, according to the company’s filings.

— CNBC’s Kevin Broyninger and Thomas Frank contributed to this story.

Trump media company gets summons in federal criminal investigation of SPAC transactions

Source link Trump media company gets summons in federal criminal investigation of SPAC transactions

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