Exclusive – Trump’s Truth Social Considering Legal Action Against SEC Over Alleged Delays In Merger Approval Process

Founded by former President Donald Trump, who started social media platform Truth Social, the company is considering taking legal action against the Securities and Exchange Commission (SEC) over alleged slow approval of the company’s planned merger with another company that would give the joint venture a big win. capital injection, exclusively to Breitbart News.

In a statement exclusively provided to Breitbart News, the Trump Media and Technology Group (TMTG) said it was investigating possible legal action against the SEC for alleged delays, which TMTG’s statement partly referred to alleged political bias within the regulatory body. . . Private company TMTG plans to merge with SPAC or special purpose acquisition company Digital World Acquisition Corp. (DWAC), but the issue has been suspended pending SEC approval and has been going on for months. DWAC is a public company.

“The SEC has suspended its review of our planned merger with DWAC without taking any action, despite DWAC’s application for registration more than four months ago,” TMTG said in a statement. Said. “This is an unforgivable hurdle that directly contradicts the SEC’s stated mission, hurting investors and many others who simply follow the rules and try to grow successful businesses. In light of the obvious conflicts of interest and clear signs of political bias among SEC officials, TMTG is currently considering taking legal action against the SEC. Despite the increasing armament and politicization of government agencies, Truth Social will continue its expansion plans supported by unprecedented levels of user engagement on the platform.”

The SEC has not made public the reason for the delays, but official media leaks indicate that the agency is investigating several issues related to the merger, and the Department of Justice is also investigating. “The SEC launched an investigation into DWAC in December after allegations emerged that company executives may have negotiated with TMGT prior to DWAC’s initial public offering and that it would violate rules that prevent SPACs from entering merger deals—before the same fundraising.” forbes for example, at the beginning of August. “DWAC also reported last month that it was the subject of criminal investigation by the Department of Justice. Regulatory filings state that each of the company’s board members has received a grand jury subpoena asking them to provide “relations with certain individuals and information about Rocket One Capital, a little-known private equity firm based in Miami.”

Had the SEC approved the merger on Tuesday this week, the risk of access to massive capital available to Truth Social was delayed. In total, approximately $1 billion in additional financing was raised by TMTG investors through private equity investment, or what is known as PIPE. Those pledges by investors who pledged a billion dollars are dependent on the SEC’s approval of the private company’s merger with SPAC on Tuesday, which obviously won’t happen due to SEC delays.

While it’s unclear what exactly were the reasons behind the delays and investigations, several recent reports, one from Just the News’ John Solomon and the other from RealClearInvestigation’s Paul Sperry, suggest that some of the SEC’s top officials under the Democratic President It seems to show that. Joe Biden can open a political vendetta against his ideological rivals. Apparently, TMTG was founded by Trump and the CEO of Truth Social is former Representative. Devin Nunez (R-CA), former chairman of the House Permanent Elected Intelligence Committee (HPSCI).

When Nunes was head of the Trump administration, he revealed the source of Russia’s joke on Trump, including some details about the Christopher Steele case and the alleged FBI misconduct.

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), speaks during the Allocation Subcommittee session in Washington DC on Wednesday, May 18, 2022. (Al Drago/Bloomberg)

Now, according to Solomon and Sperry, the Biden Securities and Exchange Commission chair actually seems confused about his previous position as the CFO of former Secretary of State Hillary Rodham Clinton, the failed Democratic presidential candidate in 2016. financed the creation of the now discredited Steele dossier. Biden’s head of the SEC is Gary Gensler, who was appointed when Biden took office and was confirmed by the Senate in the spring of 2021.

President Joe Biden (AFP)

Earlier this month, Solomon said, “While Gensler is widely regarded as Clinton’s campaign finance director, former Clinton campaign chairman John Podesta held Gensler personally responsible for the funding of the file.” In his 2017 testimony before the House Intelligence Committee, Podesta said Gensler was the senior campaign official to approve the business research firm Fusion GPS made on the case and payments to campaign law firm Perkins Coie to save Steele. “.

Maybe worse than Solomon described. Sperry told RealClearInvestigations last summer that Melissa Hodgman, wife of disgraced former FBI agent Peter Strzok, is working for Gensler on such matters at the Securities and Exchange Commission.

“Last year, Gensler appointed Melissa Hodgman as Deputy Executive Director,” Sperry wrote in July. She is married to Peter Strzok, a disgraced ex-FBI agent who was also involved in the Durham investigation. Strzok conducted an investigation into Trump and his campaign, codenamed “Crossfire Hurricane”, before being fired in 2018 for anti-Trump texts he shared with his mistress, former FBI attorney Lisa Page. As an adviser to the SEC’s executive chief, Hodgman is currently helping to oversee an investigation into Trump’s social media startup, Truth Social. Under the regulations, the SEC last month sent a federal subpoena to the Trump Media and Technology Group to retrieve the tapes. The company owns Truth Social, Trump’s response to left-wing Twitter, which was kicked off its platform for statements about the January 6 riots last year. Digital World Acquisition Corp. is a public company regulated by the SEC. RCI has contacted the SEC regarding the investigation and Gensler’s past work on the Clinton campaign, but has received no response.”

How all this will turn out – and depending on whether TMTG takes legal action, and what form that legal action will ultimately take – this could turn into an ugly and bitter political battle that echoes the dueling narratives of the Trump-Russia collusion deception story. Clearly, Trump won in the end; no evidence has emerged to support the fraud, and a great deal of evidence has emerged to disprove the fraudsters. Although this particular story is still in its infancy, it has become one of the hallmarks of the deep state’s effort against Trump; a series of strategically placed leaks designed, in part by the established media, to undermine credibility in any way whatsoever, down to the truth. Trump’s Truth is the Social narrative, a successful business.

But this kind of activity, which transcends the traditional worlds of politics, intelligence and law enforcement, is “absolutely unprecedented,” as someone close to the subject put it. The source expects Trump’s allies in Congress to look into the matter eagerly, especially if Republicans win the House, Senate, or both in the November midterm elections. That source said it wasn’t because Trump was in danger, but because the SEC had to protect shareholders—that’s the agency’s legal purpose—and these delays seem to hurt the shareholders the agency should seek. because. On that note, hundreds of people signed on Monday, an initiative by DWAC’s retail investors, which launched a petition on change.org to pressure the SEC to approve the merger.