Red Flags

3 Red Flags About Trump’s Social Media Company That Scream Fraud

Is TMTG just another bad SPAC investment, or are we watching securities fraud in real-time

Photo by Maxim Hopman on Unsplash

Donald Trump just bought his lawyer a new yacht. This realization slapped me upside the head like a sledgehammer 30 seconds after opening Trump Media and Technology Group Corporation’s (TMTG) pitch deck. While political commentators yammered about Trump’s return to social media — a triumph or catastrophe depended on the network — TMTG broke the cardinal rule of publicly traded companies and those merging with them.

Don’t mislead investors.

And no one mentioned it. I guess everyone was too distracted by Trump’s shiny new do-it-yourself social media account.

Let me be clear. The Securities and Exchange Commission (SEC) has not reviewed Digital World Acquisition Corporation’s (DWAC) acquisition of TMTG. A merger announcement is far from a done deal; just ask Aetna and Humana. Nothing suggests this is a good business deal for anyone other than DWAC’s founding members, who have likely cashed out already , and Trump, who has a sweet earnout bonus. However, this is not just another bad SPAC investment.