Trump Media Fires Whistleblower After He Shares SEC Complaint Detailing Securities Violation, Infighting: Report

Zinger Key Points
  • The Trump-linked SPAC is already in troubled waters amid SEC investigation.
  • A whistleblower complaint now alleges SPAC's merger partner Trump Media is fraught with infighting and chaos.

Trump Media & Technology Group (TMTG), which owns the Truth Social platform, lost no time in firing Will Wilkerson after he shared with the Washington Post a whistleblower complaint he filed with the SEC in August.

What Happened: Wilkerson, who was onf of its first employees, was fired from his role as senior vice president of operations on Thursday after he spoke to the Post, the media outlet said on Saturday.

In the whistleblower complaint, the executive reportedly alleged that TMTG relied on fraudulent misrepresentations for raising money through a Special Purpose Acquisition Company (SPAC), in violation of federal securities laws.

Among Wilkerson’s other disclosures was Trump getting back at TMTG co-founder Andy Litinsky for not agreeing to give some of his shares in the company to former first lady Melania Trump.

Litinsky was expelled from the company’s board in early 2022. Wilkerson shared with the WaPo and the SEC Litinsky’s email that complained about Trump retaliating by threatening to “blow up the company” if his demands were not met.

Wilkerson reportedly provided the SEC with hundreds of previously unreported company messages, documents, photos and audio recordings as part of whistleblower submissions. Detailed day-to-day computer logs compiled by co-founder Wes Moss, Litinsky and Wilkerson about their day-to-day operations were part of the SEC submissions, the report said.

See Also: Trump's SPAC Partner For Truth Social Deal Faces Setback As Shareholders Reject Time Extension: Report

Tracing Origin and Securities Fraud: Evidence submitted by Wilkerson traced the origin of TMTG, with a photo showing Litinsky, Moss and Florida criminal lawyer Bradford Cohen meeting with Trump at his Mar-a-Lago residence to discuss the idea. Trump reportedly was offered a 90% stake in the company without investing any money in it.

Wilkerson discussed how the SPAC partner was roped in for securing financing. TMTG has agreed to merge with Digital World Acquisition Corp. DWAC, headed by Patrick Orlando.

Wilkerson alleged Digital World said in the registration form filed with the SEC in May 2021 that it has yet to identify a business combination target even while Orlando was already in talks with TMTG regarding a merger.

Digital World closed Friday's session at $17.49, down 4.43%, according to Benzinga Pro data.

Read Next: How To Invest In SPACs

Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsSocial MediaPoliticsSmall CapTop StoriesSECMediaGeneralDonald TrumpSPACSPACsTrump Media and Technology GroupTRUTH Social
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!