Investors For Trump Media Company Already Under SEC Investigation

By
Carissa House-Dunphy
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0
996

If a company or organization has the Trump name on it, it’s just about guaranteed to be shady. His central business agency, the Trump Organization, is under both civil and criminal investigation. His charity organization, the Trump Foundation, was not only shut down for fraud, but Trump and his children are now legally barred from running any other charity organizations. During his presidency, Trump committed acts of election interference and inciting an insurrection, both of which are being investigated for potential criminal actions. If it’s Trump’s, it’s almost sure to be corrupt.

His new social media venture, which he plans to start because Facebook and Twitter won’t allow him on their sites anymore, hasn’t even been launched yet but is already shaping up to be the same. One of its largest investors, Arc Capital, is a shell company based in China with a number of “businesses” under its model. Shell companies, which often have no profits and no employees, are allowed to be publicly traded but only if they are honest with investors about what their company does. Thanks to their own shadiness, they’ve been under investigation by the Securities Exchange Commission (SEC) more than once in the past and again currently.

According to The Washington Post:

‘Arc Capital, an investment advisory firm based in Shanghai, has repeatedly helped create or finance companies with little or no revenue, no customers and office locations that point to P.O. boxes, according to a Washington Post review of regulatory and court filings. One claimed to be developing autonomous drone software despite having no employees; another said it operated a publicly traded in-home bakery “specializing in freshly-made cakes and cupcakes” before sayingit pivoted into touch-screen technologies for a “diversified blue-chip client base,” regulatory filings show.’

The company has already put together more than $1.3 billion to invest in Trump’s new company, which at this point is just a shell company invested in by a shell company. Although shareholders will have the power to approve or disapprove the investment by a shell company under investigation, it’s likely that Trump will personally profit greatly by those funds, making those funds some that Trump will be loathe to part with.

‘This year, Arc helped create Digital World Acquisition, an investment vehicle that has raised over $1.2 billion to conduct a merger with Trump Media and Technology Group. Digital World is what’s known as a special purpose acquisition company, or SPAC, a type of shell business that raises money from investors to acquire a private start-up with strong growth prospects. The deal, which still must be approved by shareholders and regulators, has the potential to enrich the former president and turn his nascent social media start-up into a public company overnight.’

Former stars of The Apprentice first developed and pitched the idea to Trump, while Rep. Devin Nunes (R-CA), whose shady activities in Congress in support of Trump have yet to be fully investigated, is leaving his elected position to run the new company. Giving up his day job may not be the smartest move he’s made.

‘Other Trump ventures have come under scrutiny in recent years, including his charitable foundation, which shut down after an investigation by the New York attorney general’s office, and Trump University, an online school that closed and paid a $25 million settlement to former students.’



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