It has been complicated, but most people know that Donald Trump is trying to start up his own digital media company, only this company is going to be much different than any Trump company before. He wants to take it public, as in sold on the stock exchange and funded/owned by shareholders. (He would retain plenty of shares). He wants to merge World Acquisition Corp (DWAC) and Trump Media & Technology Group (TMTG). Except there’s a problem with that.

With your own company, that you personally own, you’re far freer to just bankrupt that thing right into the damned ground, violating every law along the way, and take your chances. But when you’re using other people’s money in a registered legal “entity,” the rules are a bit different. In that there are rules.

And Trump may already be violating them. According to Mediaite:

The statement notes that “the investigation does not mean that the SEC has concluded that anyone violated the law,” but it does come after the organization has been seeking documents regarding DWAC policies, investor information, and communications with TMGT.

The investigation comes after previous reports outlined Trump’s effort to merge TMGT with DWAC, a special purpose acquisition company (SPAC). SPACs, also known as “blank cheque companies,” are designed to help private firms go public by setting up a shell company with the sole purpose of raising money through an IPO to acquire another company.

Ah, yes. The shareholders, unbeknownst to them, own the shell company owns the company that makes, and keeps, the money. Sounds like a Trump-type of move.

He is violating one of the cardinal rules on Wall Street. If you are a rich white dude committing a financial crime, fine – you’ll likely get out of it… so long as it’s not taking other rich, white, dudes’ money.  Once you start doing that, well – then you are actually a real criminal and face real consequences.

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