Exclusive: Trump’s media company took out an $8 million loan in exchange for stock, but no one told the SEC
last month that it was cooperating with investigators from the SEC, Justice Department and Financial Industry Regulatory Authority but did not provide details on what was being examined. The federal agencies and Finra, an industry group, declined to provide more detail.
In a convertible promissory note dated Dec. 23, 2021, Trump Media was offered the money in exchange for agreeing to “automatically” convert the loan principal into “shares of Company Stock” once the merger with Digital World occurred, according to a copy of the document reviewed by The Post. The document does not say precisely how much stock ES Family Trust would receive. Trump
The referral fee agreement names “Anton Postolnikov and affiliated entities” as “Introduced Parties” who participated in the deal. Orlando is a registered broker at Entoro, according to aUnease over the money A month after the second payment, Trump Media executives still knew little about the origin of the money. On March 8, 2022, the company’s chief financial officer, Phillip Juhan, sent an email to the then-chief legal officer of another Orlando-run firm, Benessere Investment Group, seeking contact information for anyone at ES Family Trust.
Digital World did not tell investors about the $8 million in loans or Entoro’s referral fee in its filings submitted to the SEC, a review of public documents shows. Ohlrogge said the SEC could insist the loans should have been disclosed to investors, given that the concerns over its origins and Orlando’s finder’s fee could affect the value of the shares.
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