Trump's Social Media Deal Under Serious Scrutiny For Possible Fraud

Things keep getting worse for Donald Trump's fledgling social media company, as a former member of the acquisition group is now suing the owner of the group alleging fraud. The executive claims that he was wrongfully kicked out of the project and entitled to financial compensation, but there are other claims in his filing that are raising serious legal red flags for investigators. Farron Cousins explains what's happening. Link - https://www.axios.com/trump-spac-deal... Don't forget to like, comment, and share! And subscribe to stay connected! Connect with Farron on Twitter:   / farronbalanced   *This transcript was auto-generated. Please excuse any typos. More bad news for Donald Trump's, uh, social media platform that, uh, as of yet, has still not gotten off the ground. But, uh, the group that acquired Donald Trump's company, digital world acquisition group is now actually being sued by a former investor who alleged is that he was improperly kicked out of the group. And therefore the group is fraudulent. He's alleging this fraud took place because they, I guess didn't want to give him the money. And he is suing to either get financial compensation or in fact, be allowed to come back again as an investor, buying up the amount of shares he would've otherwise been entitled to at 3 cents per share. So that's a big problem. When one of your former investors who you, according to him, improperly kicked outta the group says that this group is riddled with fraud, probably a big red flag for investigators who again are already looking into the deal. And that is just the tip of the iceberg. By the way, on all of the news we have gotten about Donald Trump's little group, this, uh, uh, special, uh, purpose acquisition group is what they're called specs. Uh, there was more BA had news that came out earlier last week that obviously flew a little bit underneath the radar because of all of the news about text messages and, you know, trees, and inition from Republicans in the house of representatives. But that news came from investors in wall street, not investors in the company, but who have been scrutinizing this and saying that it's murky, that it doesn't smell right. And that they've literally never seen anything like this. And they say they probably will never see anything like this again, because the company was valued at a little under $11 billion last week, in spite of all the red flags, in spite of the S E C investigation into the company, which is most likely a formality, but with these new fraud charges coming from one of the investors, it could easily take off into a very serious investigation because in the court filing itself, this former investor, a man by the name of Brian, Chevlin alleges that Donald Trump and the CEO of digital world acquisition group, the group that acquired Trump's social media company, they'd been talking about this for months, that this was an ongoing plan. And that would be folks, the fraud that the guy's talking about, because what is supposed to happen with these spec groups. And again, I hate all of these stupid little acronyms that they have on wall street, but anyway, what's supposed to happen is you gather up all your investors. Everybody puts their money into a central location. And at that point, once all the money is in, then you decide where to invest it. And if it turns out the CEO of digital world acquisition was in fact in talks with Donald Trump long before the money came into the pot, that absolutely would be fraud. And that absolutely would be prosecutable likely for both parties, uh, which would be Donald Trump and the CEO of digital world, Patrick Orlando. So both parties could face some kind of criminal liability. If what Mr. Chevlin is alleging in his lawsuit is actually true. So at this point, it is probably worth the SEC's effort to continue their investigation and find out what happened. They also clearly need to go ahead and speak with Mr. Chevlin himself. See if he has any evidence to back up his claims that Orlando and Trump were in fact, in talks prior to the purchase being made. There's a lot of unknowns here, but the more we're finding out about it, the more this venture does start to look at least on the surface. Totally fraudulent, a get rich quick scheme by a bunch of wall street investors and Donald Trump himself, where they get to bring in all the money. They get to take home off a, all the profits. They end up fleeing the average investors who bought into this once they all sell and, you know, leave them with stock that is effectively worthless and even other investors on wall street. As I mentioned, are looking at this and saying this isn't right, something's wrong here.