Digital World, the Trump Social-Media SPAC, Charged with Fraud

By Sabela Ojea

Digital World Acquisition, the special-purpose acquisition company trying to merge with former President Donald Trump's social-media company, has been charged with fraud by the U.S. Securities and Exchange Commission.

The blank-check company allegedly filed an initial public offering-related form that was "materially false and misleading," to investors and the SEC, the government agency said Thursday.

These charges come less than three weeks after Digital World Acquisition said it had reached a settlement with the SEC's division of enforcement over alleged fraud claims.

In September 2021, Digital World Acquisition stated in a filing that the company and its officers had never had discussions with any potential target companies prior to the initial public offering with Trump Media & Technology. However, the company allegedly omitted information about the history of its interactions with Trump Media & Technology.

"An individual who would later become DWAC's CEO and Board Chairman, and others involved with DWAC, had extensive SPAC merger discussions with TMTG," the SEC added.

Digital World Acquisition in March fired Chairman and Chief Executive Patrick Orlando, who had been on the board of the SPAC since its IPO, "to restore confidence to the shareholders."

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

July 20, 2023 17:52 ET (21:52 GMT)

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