Senator Elizabeth Warren wants the Securities and Exchange Commission to probe Donald Trump's SPAC deal.
The Massachusetts Democrat says SPAC sponsor Digital World Acquisition Corp. may have violated securities laws because it discussed the merger with Trump before the SPAC went public, according to media reports.
DWAC's failure to disclose the talks "appears to be an omission of material information necessary for both early institutional investors and retail investors in the SPAC's public offering," wrote Warren in her Nov. 17 letter to SEC chairman Gary Gensler.
Warren also believes the lack of a core business model for Trump Media and Technology Group raises questions about the extent to which DWAC is profiteering off the SPAC model and inherent disclosure failures.
She noted that the overview of Trump Media and Technology Group fails to list any officers, employees or operations, "instead relying on the brand of former president Trump and aspirational statement about the company's ability to compete with existing social media giants, traditional news media, and streaming services including Netflix and Disney Plus."
Warren wrote that she frequently holds public officials to task for lawbreaking and ethics violations: "This includes the former president, who is not above the law."
She hopes the probe of the Trump deal would lead to a broader SEC investigation "of wrongdoing and fraud in the SPAC space."
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