Trump Media CEO begs House GOP for help as stock value plunges
Former GOP lawmaker and current Trump Media & Technology Group CEO, Devin Nunes, is turning to his former colleagues on Capitol Hill to help fight against Wall Street traders dealing in the company’s stock who he says are participating in “anomalous trading” — a practice in which they bet on the stock declining.
In a letter to his former colleagues, Nunes warned that there are "strong indications of unlawful manipulation of DJT stock." As Politico points out, the letter was addressed to House Judiciary Chair Jim Jordan (R-OH), Financial Services Chair Patrick McHenry (R-NC), Ways and Means Chair Jason Smith (R-MO) and Oversight and Reform Chair James Comer (R-KY).
According to Politico, the letter marks "a new salvo in Trump Media’s attacks on Wall Street over claims that the Trump-controlled company’s stock price is being swayed by professional traders wagering against it."
Also read: Trump uses 1890 legal ruling to demand dismissal of 2 charges in Georgia election case
The stock price of Trump Media has plunged after it initially surged due to individual investors buying shares as a way to show support for Donald Trump. The drop in value came as more details were released about the company's financials.
In his letter, Nunes called on lawmakers to investigate the trading of the stock and “whether any laws including RICO statutes and tax evasion laws were violated, so that the perpetrators of any illegal activity can be held to account.”
As Politico points out, Nunes is worried about an illegal type of short-selling activity known as “naked short selling.”
"Typical shorting involves traders borrowing shares that they then sell into the market before buying them back later — hopefully at a lower price to collect the difference. But naked short selling entails never borrowing the stock to start, a far riskier practice," Politico's report stated.
Read more at Politico.