Citizens for Ethics and Responsibility in Washington pursues the facts about corruption in federal government. Lately, CREW has zeroed in on the potential for corruption in the launch of Trump’s new media company. So far, not a good investment. Trump owns more than half the stock, which he got for free. The stock opened at $78 and plummeted. On Friday it stood at $32.59.
CREW recently distributed this notice:
Digital World Acquisition Corp. (DWAC), a so-called blank-check company also known as a SPAC, last Friday officially merged with Donald Trump’s Truth Social, providing a massive cash infusion for the company. It also provided a lifeline for Trump himself, at a time when he desperately needs cash because he needs to post bonds for huge penalties in civil lawsuits.
Immediately, we wanted to figure out who had invested in Trump’s newly public company.
CREW got to work and uncovered the biggest institutional investor in DWAC: Susquehanna International Group LLP, which was co-founded by GOP megadonor Jeffrey Yass.
Yass is a major investor in TikTok’s parent company ByteDance, and he recently faced scrutiny for meeting with Trump shortly before Trump changed his mind about banning TikTok. For Trump, this was a huge reversal that is quite beneficial for Yass.
Then we dug a little deeper and learned that Yass is worth $28 billion, is the single biggest political donor in the U.S. this cycle—and is also reportedly in the running to become Trump’s Treasury Secretary if he wins a second term.
This deal just gave Donald Trump a massive financial lifeline. And it opened up an even easier way to potentially influence Donald Trump.
The Yass connection raises enough alarm bells on his own, but the issue is even bigger. Trump taking his company public creates the opportunity for anyone who wants influence with Trump to buy stock in DJT. (Literally, that’s what they’re calling it.)
The value of the stock is widely understood to be massively inflated, with the true draw being the chance to invest in Trump himself. What if a foreign sovereign wealth fund invests? What if a person who wants a pardon invests? There’s nothing preventing either scenario.
As Trump runs for the presidency again, he’s cashing in from a publicly traded company. That is an ethics nightmare.
My comment:
Do you remember Jeff Yass? He went to New York City public schools. After college, he joined the financial industry, where he has been a great success. He is the richest person in Pennsylvania. He supports Trump. He opposes abortion. He supports charter schools and vouchers. “The Center for Education Reform” awards cash prizes annually called the Yass Prize. Most of the winners are charter schools. The top prize is $1 million. In 2022, the Capitol Prep Charter Schools was a finalist. The school in Harlem was launched by Dr. Steve Perry and Sean “Diddy” Coombs. In addition, Yass gave Texas Governor Greg Abbott $6 million to get the Legislature to enact a voucher plan. Abbott used the money to run radical right wingers to run against moderate Republicans who opposed vouchers.
Citizens for Responsibility and Ethics in Washington
PO Box 14596
Washington, DC 20044
United States