US SEC Sues Digital World Ex-CEO Patrick Orlando For Alleged Securities Fraud

(RTTNews) - The U.S. Securities and Exchange Commission sued Patrick Orlando, the former CEO of Digital World Acquisition Corp. (DWAC) that merged with Trump Media (DJT), accusing him of securities fraud.

In a filing with the court of the District of Columbia, the SEC stated that the chief lied in public filings by claiming that his company has no plans for a merger while he "personally engaged in numerous lengthy discussions" with representatives of Trump Media & Technology Group.

"Orlando knew these statements were false," the SEC's complaint stated.

Further, the court filing stated that Orlando's company raised $287.5 million in its IPO in September 2021, and in October the company announced a merger agreement with Trump Media, which owns the social media platform Truth Social, as per USA Today.

The Digital World Acquisition Corp. completed its merger with Trump Media & Technology Group in March.

The SEC has urged the court to charge Orlando with civil penalties and permanent injunction, and to ask him to return his "ill-gotten gains".