Whenever a business raises money, either in a public offering or a private placement, SEC rules require full disclosure to potential investors of that enterprise's risks. What's delicious about this HuffPost article is that the disclosures were not the result of investigative reporting but rather of honest self-disclosure. Enjoy....
Donald Trump's New Business Partners Just Published A Damning List Of All His Failures
A document filed by Donald Trump’s new business partners makes terrible reading for the former president.
Trump’s business failings — and the number of lawsuits he currently faces — are laid bare in damning detail in the S-4 registration statement that Digital World Acquisition Corp., the special-purpose acquisition company that is merging with Trump’s Trump Media & Technology Group Corp. to take it public, filed with the U.S. Securities and Exchange Commission on Monday.
Multiple risk factors associated with doing business with Trump are highlighted in the filing because, it says, the company’s success depends largely on his reputation and popularity.
Of Trump’s lengthy history of bankruptcies, it states:
Entities associated with President Trump have filed for bankruptcy protection. The Trump Taj Mahal, which was built and owned by President Trump, filed for Chapter 11 bankruptcy in 1991. The Trump Plaza, the Trump Castle, and the Plaza Hotel, all owned by President Trump at the time, filed for Chapter 11 bankruptcy in 1992. THCR, which was founded by President Trump in 1995, filed for Chapter 11 bankruptcy in 2004. Trump Entertainment Resorts, Inc., the new name given to Trump Hotels & Casino Resorts after its 2004 bankruptcy, declared bankruptcy in 2009. While all of the foregoing were in different businesses than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of those entities.
Of failed license agreements with Trump, it notes:
Trump Shuttle, Inc., launched by President Trump in 1989, defaulted on its loans in 1990 and ceased to exist by 1992. Trump University, founded by President Trump in 2005, ceased operations in 2011 amid lawsuits and investigations regarding the company’s business practices. Trump Vodka, a brand of vodka produced by Drinks Americas under license from the Trump Organization, was introduced in 2005 and discontinued in 2011. Trump Mortgage, LLC, a financial services company founded by President Trump in 2006, ceased operations in 2007. GoTrump.com, a travel site founded by President Trump in 2006, ceased operations in 2007. Trump Steaks, a brand of steak and other meats founded by President Trump in 2007, discontinued sales two months after its launch. While all these businesses were in different industries than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of these entities.
In both cases, the statement warns there are “no assurances” that the new company will not go the same way as Trump’s past scuttled ventures.
The filing also details the “numerous lawsuits and other matters that could damage his reputation, cause him to be distracted from the business or could force him to resign from TMTG’s board of directors.”
They range from the congressional investigation into Trump’s role in the incitement of the deadly U.S. Capitol riot and his alleged removal of classified documents to a defamation lawsuit from writer E. Jean Carroll, who has accused Trump of rape.
“The foregoing does not purport to be an exhaustive list,” the document warned.
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