Trump Media Calls for Investigation Against Firms That Were Short Selling DJT Shares

The CEO of Trump Media has urged prominent House committee chairmen to investigate eight financial firms due to concerns about potentially illicit short selling of DJT, majority-owned by former President Donald Trump.

“I believe quick action is necessary to protect retail shareholders, identify wrongdoers, and determine whether any laws including [Racketeer Influenced and Corrupt Organizations Act] statutes and tax evasion laws have been violated,” wrote CEO Devin Nunes. Nunes had previously asked top House Republicans to investigate short selling of Trump Media stock.

In his letter dated Wednesday, Nunes specified that the committees should seek documents and testimony from eight firms: Apex Clearing, Clear Street, Cobra Trading, Cowen and Company, Curvature Securities, StoneX Securities, TradePro, and Velocity Clearing.

A spokesperson for Clear Street declined to comment on Nunes’ letter. CNBC has reached out to the other companies named in the letter for comment.

Truth Social (Credits: Anna Barclay/Getty Images)

Nunes has intensified his efforts to combat short selling of Truth Social app owner’s shares, urging shareholders to block their stock from such trades and asking the Nasdaq Stock Market and the House to probe potentially illegal “naked” short selling.

Nunes suggested that the sharp decline in Trump Media’s share price since public trading began on March 26 is the result of naked short sales, not a reflection of the company’s modest revenue of $4.1 million last year compared to its market capitalization of over $6 billion.

DJT shares were trading 6% higher early Thursday at $47.84 per share, which is 32% lower than its opening price on March 26.

Much of Donald Trump’s net worth is tied up in his 65% stake in Trump Media, but he cannot sell the shares, valued at over $5 billion, until September due to a provision in the merger with a shell company that took the firm public.

Donald Trump Under Trial

Nunes wrote to the House Judiciary, Ways and Means, Financial Services, and Oversight and Reform chairmen, citing anomalies in DJT trading and urging them to investigate whether intra-day short sales of DJT violate SEC rules.

“In addition to asking for records and information regarding trading in DJT, relevant documents include compliance policies — including any policies that condone the application of a ‘multiplier’ to facilitate the lending of more shares than are available,” Nunes wrote.

Nunes noted that DJT has remained on Nasdaq’s Reg SHO Threshold List since April 2, 2024.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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