Trump-linked SPAC settles SEC fraud charges for proposed $18M
By 
Kyle Brasseur2023-07-21T15:37:00
Digital World Acquisition Corp. (DWAC) faces a penalty of $18 million as part of a settlement reached with the Securities and Exchange Commission (SEC) regarding fraud allegations related to its dealings with Trump Media & Technology Group (TMTG).
The special purpose acquisition company (SPAC) was accused of making material misrepresentations to its investors by not disclosing its plans to acquire the social media company formed by former President Donald Trump. The SEC also alleged DWAC “mischaracterized and omitted information about the history of its interactions with TMTG” in filings with the agency, according to a press release Thursday.
DWAC will be fined $18 million in the event it closes a merger transaction, which it is still pursuing with TMTG. The penalty will be waived should the SPAC be dissolved and money returned to investors before January 2025.
Related articles
-
News BriefSEC fines Cantor Fitzgerald $6.75M for failing to disclose pre-IPO talks
Financial services firm Cantor Fitzgerald will pay a $6.75 million fine to the Securities and Exchange Commission for making misleading statements regarding two special purpose acquisition companies that it controlled.
-
News BriefSPAC to avoid $1.5M SEC fine for failing to disclose pre-IPO merger talks
Northern Star Investment Corp. II faced a penalty of $1.5 million to settle charges laid by the Securities and Exchange Commission that it made misleading statements in its January 2021 initial public offering.
-
News Brief
SEC orders AssetMark to pay $18M in conflicts of interest case
Investment adviser AssetMark agreed to pay more than $18 million to settle allegations by the Securities and Exchange Commission regarding undisclosed conflicts of interest involving its affiliate’s cash sweep program and its revenue-sharing arrangements with third parties.
More from Regulatory Enforcement
-
ArticleDOJ dismisses indictment against Cassava advisor amid mounting legal flaws
The DOJ dropped a June 2024 indictment against a Cassava Sciences advisor, closing a case tied to an alleged short-selling scheme and related government probes. The case was criticized for fundamental flaws in evidence and legal procedures.
-
ArticleFormer Capula CCO alleges misconduct and retaliation at the hedge fund firm
The former U.S. chief compliance officer of hedge fund firm Capula Investment Management has blown the whistle against his former employer, alleging he was terminated for raising concerns about improper expensing practices.
-
ArticleFINRA fines First Trust $10M for allegedly giving too-generous gifts to brokers
First Trust Portfolios has been fined $10 million by FINRA for allegedly providing excessive meals, gifts, and other incentives to broker-dealers.