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  • Writer's pictureDonald V. Watkins

Securities and Exchange Commission Okays Donald Trump's 58 to 64% Ownership of a Publicly Traded Social Media Company, Despite Court Findings of Business Fraud

By: Donald V. Watkins

Copyrighted and Published on March 19, 2024

IMAGE: Donald Trump, Jr., speaks to his father, Donald J. Trump.

An Editorial Opinion


On February 16, 2024, a New York state court found that Donald Trump, Donald Trump, Jr., and Eric Trump schemed for years to defraud banks and insurers by inflating his wealth on financial statements used to secure loans and make deals. The court entered a $454 million civil fraud judgment against Trump and his sons, who are appealing this ruling.

 

The day before the much-anticipated court ruling in Donald Trump's case, the U.S. Securities and Exchange Commission approved a merger of Trump Media and Technology Group with Digital World Acquisition Corp., a publicly-traded blank-check acquisition company. Trump's media company owns Truth Social, which he founded after he was banned from Twitter (now known as X) in 2021.


Trump Media's merger deal with Digital World was valued in February at an estimated $10 billion. This valuation was purely speculative

 

Digital World’s shareholders are scheduled to vote on the merger deal on Friday, March 22, 2024.

 

Since its founding in 2021, Truth Social has sustained massive financial losses and a limited base of users (estimated 607,000 monthly users as of July 2023).  Trump has 6.61 million followers on Truth Social. Digital World says Truth Social has so far had 8.9 million signups.


The Commission's approval of the merger occurred despite Donald Trump's documented history of filing business bankruptcies – six to be exact -- and stiffing creditors.

 

The merger was approved while Donald Trump is awaiting state and federal criminal trials in New York, Washington, Atlanta, and Miami on 88 felony charges.

 

Donald Trump, Jr., who was also found liable of business fraud in the New York civil case, is slated to join the board of directors of the merged entity.

 

Despite all of these red flags, Donald Trump will own between 58.1% and 69.4% of the combined company.

 

If Digital World’s shareholders approve the merger deal, Trump will become the first person in the history of the Securities and Exchange Commission to own a majority interest in a publicly traded company AFTER he was: (a) convicted of repeated acts of civil business fraud in court, (b) indicted by state and federal authorities on 88 felony charges, and (c) involved in six business bankruptcies.

 

The Securities and Exchange Commission is supposed to be the watchdog agency that protects the investing public from fraudsters.  It rarely performs this function. Instead, the Commission has become a cleansing agent for crooked Wall Street banks, major utilities like the Southern Company, and soiled businessmen like Donald Trump.


With the Trump Media-Digital World merger deal, the Commission found a pathway to hold its nose and look past Donald Trump’s adjudicated business fraud, four criminal indictments, and six corporate bankruptcies so that Trump and his son could (a) seize control of a public social media company and (b) save Truth Social from bankruptcy.  


The Securities and Exchange Commission is as crooked as the Trumps. No other explanation makes sense for its approval of the Trump Media-Digital World merger deal.

 

Digital World’s share price closed at $35.57 on Monday -- the same day Trump's lawyers announced that he was unable to post a $464 million appeal bond in his New York civil fraud case. The share price is down from $50.49 in February when the Commission approved the merger.


We now know the highly touted Trump Media-Digital World stock is virtually worthless since it does not provide Donald Trump with the amount of liquidity he needs to post a $464 million appeal bond in his civil fraud case.


From the public's standpoint, the Commission's approval of the merger has facilitated the nightmare scenario of stacking of fraud on top of fraud.

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Donald V. Watkins
Donald V. Watkins
22 mars

Trump Media and Technology Group's merger with Digital World Acquisition Corp. was approved today by Digital World's shareholders. Donald Trump owns 80 million shares in the merged company. He is the first and only adjudicated fraudster and four-times indicted criminal defendant to become the majority owner of a publicly traded company. Congratulations are in order to the U.S. Securities and Exchange Commission for facilitating this fraud milestone in a public company. Nobody thought this could happen in America.

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Donald V. Watkins
Donald V. Watkins
19 mars

For those who claim they have never seen "White Privilege," here it is in all of its luster.

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livingtho2
19 mars
En réponse à

I agree, granting Donald Trump control of a social media company is quite unusual considering the vast number of felonies pending against him. I'd said before and remain convinced that Trump is

untouchable.His well documented criminal acts aren't enough to disqualify or bar him from access to opportunities he doesn't deserve.


White privilege with reference to Trump is only a metaphor; It's far more deeper. His whiteness plus wealth allows him to say and do as he please to anyone regardless of their status without concern about the consequences that may follow.


Another point to consider, Trump's gaining control of a social media company will empower him to target those he deems his foes with intent to destroy them. Futhermore,…


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Kamar Jones
Kamar Jones
19 mars
Noté 5 étoiles sur 5.

If the value of this social media platform continues to be weak, the shares may continue to go to hell, making it difficult to use them to secure the bond. He'll be getting maintenance calls constantly. I wouldn't be surprised if he's bailed out by some ultra rich conservative who may have a stock or bond portfolio that they offer. With that being said, good luck collecting the money when that happens.

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