Whistleblower Complaint Claims Media Company Trump Committed “Fraudulent Claims”

A former executive told the government that Donald Trump’s media company of the same name – which sources are under federal investigation – made “fraudulent claims” regarding possible mergers with two other companies while trying to raise funds.

The denunciation of Will Wilkerson, a former Trump Media executive & Technology Group (TMTG), claims that TMTG and several company officials have committed violations of federal securities law, as well as by Benessere Capital Acquisition Corporation (BENE) and Digital World Acquisition Corporation (DWAC).

BENE and DWAC had been considered or are being used as investment vehicles to potentially bring TMTG on the stock exchange, a move that would also secure an additional $ 1 billion reported by other investors if the deal were to close.

Wilkerson’s complaint, filed in August and obtained this weekend by ABC News, alleges “fraudulent claims regarding merger attempts between these companies. [Trump’s firm, BENE and DWAC] in violation of federal securities laws. “

More specifically, Wilkerson claims in his complaint that DWAC and Trump’s media company “had substantial disclosures” about the merger before DWAC was itself a public company, violating Securities and Exchange Commission (SEC) regulations.

The SEC and federal prosecutors in the Southern District of New York are investigating Trump’s company, according to sources familiar with the matter.

Both agencies declined to comment on ABC News.

None of the SPACs named in the complaint immediately responded to requests for comment.

In a statement, TMTG’s legal team touted the company’s work so far, such as its cross-platform launch and its millions of users, dismissing what it described as “knowingly false and defamatory statements” in an article in the Washington Post on Saturday in which Wilkerson talked about his whistleblower complaint and his time as a TMTG executive.

Wilkerson was fired last week as senior vice president of operations after the Post sent questions to Trump based on his account, according to the newspaper.

DWAC first acknowledged in December that the SEC was looking into its merger with TMTG and was looking for related documents.

DWAC also indicated in June that it was aware of a federal grand jury investigation in the Southern District of New York.

Former President Donald Trump speaks at the 2022 Conservative Political Action Conference in Orlando, Florida on February 26, 2022.

Chandan Khanna / AFP via Getty Images, FILE

The whistleblower complaint states that DWAC was replaced as SPAC to merge with Trump’s company, TMTG, because a deal with BENE “could not sufficiently capitalize TMTG at an acceptable rating for President Trump” and others involved.

The CEO of BENE would also have made “less money” than if the CEO had used his other, more recent SPAC, according to the complaint.

“For these reasons, the parties have decided to replace BENE with DWAC” in a merger, reads the whistleblower’s complaint.

Wilkerson’s complaint was first reported last week by the Miami Herald. TMTG was launched last year and is the umbrella company of Truth Social, the platform used by Trump since it was banned from most major social media sites in the wake of the January 6 uprising.

Wilkerson also told The Post in his report on Saturday that TMTG co-founder Andy Litinsky was expelled from the board because he would not hand over shares in the company to the former president’s wife, former first lady Melania Trump, when Donald Trump asked him to do so.

The Post published a copy of an email Wilkerson shared with them, apparently sent by Litinsky in March, in which Litinsky refers to Donald Trump’s alleged request to transfer his shares and his belief that being removed from the advice was a retaliation against him.

The Post reported that it was not known whether Litinsky ultimately renounced his shares.

Speaking to the Post, Wilkerson attacked the leadership of TMTG CEO Devin Nunes, a former California congressman.

In its statement, TMTG defended Nunes, saying he was hired by Donald Trump “to create a culture of compliance and build a world-class team to lead Truth Social.”

The Post’s story was “filled with knowingly false and defamatory statements and other fabricated psychodramas,” the company said. “We will see the republishing of such statements as legally prosecutable evidence of a reckless disregard for the truth.”

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