Devin Nunes is no longer a member of the House of Representatives as he moves to become CEO of DDT’s new tech company, Trump Media & Technology Group (TMTG). The new minority leader of the House Intelligence Committee, Ohio’s Mike Turner, plans to move away from the past partisanship by being more independent of DDT. In 2019, Turner had signed a letter to oust Rep. Adam Schiff but no longer wishes to do so. Instead, Turner wants “to work across the aisle and to try to advance what’s important to our country.”
Having been a dairy farmer, Nunes has no experience as either an executive or in the technology industry. TMTG plans to merge with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company (SPAC), a type of shell business raising money from investors to acquire a private start-up with strong growth prospects, being investigated by the Securities and Exchange Commission. Also being investigated by SEC is Arc Capital, the Chinese firm helping DDT take TMTG public. Federal securities regulators allege the firm misrepresents shell companies with no products and few products as ambitious, growing enterprises. Their office locations are usually PO boxes.
Founded in 2015, Arc helped create DWAC that raised over $1.2 billion to complete its merger with TMTG. If the deal is approved by shareholders and regulators, it can make DDT a great deal of month by turning TMTG into a public company overnight. DDT’s name pushed DWAC’s shares to five times the listing price despite no information about the business. Little information about TMTG has been released. A securities lawyer said it’s “a shell company basically merging with another shell company.” In 2017, the SEC topped three Arc-backed companies from publicly selling shares and suspended trading in a fourth Arc-financed business. Mexican entrepreneur Abraham Cinta, Arc’s founder, said U.S. securities regulators are looser in registering companies than those in China and Hong Kong, making it easier to take unproven companies public.
Other DDT ventures have been investigated, including his charitable foundation, shut down by New York’s AG, and Trump University, closed with a $25 million settlement to former students. The Financial Industry Regulatory Authority is also checking into DWAC’s share trading.Progress Post-January 6? | Nel’s New Day