Litinsky tried to brush it off, telling Trump “the gift would have meant a huge tax bill he couldn’t pay,” Wilkerson said in an interview. “Trump didn’t care. He said, ‘Do whatever you need to do.’ ”
Five months later, Litinsky, who first met Trump in 2004 as a contestant on the TV show “The Apprentice,” was abruptly removed from the company’s board. Wilkerson said he believes it was payback for his refusal to turn over a small fortune to the former president’s wife. Litinsky thought so, too, according to an email Wilkerson and his attorneys shared with The Washington Post and the Securities and Exchange Commission. In that email, Litinsky complained that Trump was “retaliating against me” by threatening to “ ‘blow up the company’ if his demands are not met.”
Litinsky did not respond to emails and phone messages. It is unknown whether he still retains his shares.
The email — one of hundreds of previously unreported company messages, documents, photos and audio recordings that Wilkerson has provided to the SEC in connection with a whistleblower submission — reveals a stunning portrait of the animosity that has built up inside Trump Media since its high-profile debut last year.
Promoted as the centerpiece of Trump’s post-presidential business ambitions, the company had marketed itself as a budding media empire, with enterprises planned in social media, video streaming, live events and online payments — a powerful rival not just to Twitter but Disney, Google and Amazon.
But inside the company, Wilkerson said, those plans gave way to bitter infighting, technical failures and a chaotic jockeying for power among Trump allies that undermined its potential and left some employees crying at their desks.
Wilkerson, who was fired from his job Thursday as a senior vice president of operations at the company after he spoke to The Post, filed the whistleblower complaint with the SEC in August. The complaint, drafted by Wilkerson’s attorneys, alleges that the company’s bid to raise money via an investment vehicle known as a special purpose acquisition company, or SPAC, relied on “fraudulent misrepresentations … in violation of federal securities laws.”
The SEC, a federal watchdog agency, allows members of the public to submit tips, complaints and referrals about suspected financial wrongdoing via a document the agency calls a Form TCR. Whistleblowers can be granted confidentiality protections and, in some cases, financial awards. Litinsky did not join in the complaint.
Wilkerson is cooperating with investigations into Trump Media by the SEC and federal prosecutors from the Southern District of New York, said his attorneys, Phil Brewster, Patrick Mincey and Stephen Bell. Among the materials he filed with the SEC’s whistleblower office is a detailed, day-to-day computer log compiled by company co-founder Wes Moss, Litinsky and Wilkerson about their daily company-related activities.
He also provided to The Post a copy of that log as well as numerous other memos, photographs and videos that chronicled the creation of Trump Media. All of the materials Wilkerson shared with The Post were previously provided to government investigators, his attorneys said.
The SEC and the SDNY declined to comment.
In an SEC filing in December, Digital World acknowledged that the SEC was investigating and had sought documents related to the merger with Trump Media. In another filing in June, Digital World said it had become aware that a federal grand jury in the Southern District of New York had issued subpoenas to its board members seeking documents related to its initial public offering filings and “communications with or about multiple individuals.” The investigations, the company said, could “impede or prevent” the merger.
Wilkerson said he was still working for the company on Oct. 6 when his SEC complaint was first reported by the Miami Herald. A Trump Media attorney sent Wilkerson a letter that night suspending him for what the lawyer said was a “blatant violation” of his nondisclosure agreement.
After interviewing Wilkerson alongside his attorneys, The Post on Wednesday sent a detailed list of claims and questions raised by Wilkerson’s allegations to representatives for Trump, Trump Media and the Trump Organization, Trump’s long-running family business.
Only Trump Media responded, saying in a statement that Trump, as company chairman, had hired former congressman Devin Nunes (R-Calif.) as CEO to “create a culture of compliance and build a world-class team to lead Truth Social.” The company said it was already a success, having launched on the Apple and Google app stores, “executed multiple feature updates” and attracted millions of users. “Ignoring these achievements, The Washington Post sent us an inquiry rife with knowingly false and defamatory statements and other concocted psychodramas.” The statement did not directly address any of Wilkerson’s claims.
Trump Media fired Wilkerson on Thursday, citing his “unauthorized disclosures” to The Post. Brewster, his attorney, called the termination “patent retaliation against an SEC whistleblower of the worst kind.”
Digital World Acquisition, the SPAC that is pushing to take Trump Media public, has asked shareholders to give the company more time to finalize the merger, which would unlock hundreds of millions of dollars for Trump Media but is effectively frozen pending the outcomes of the federal investigations. Digital World and its chief executive, Patrick Orlando, did not respond to requests for comment.
The revelations to the SEC from Wilkerson, the most prominent company official to speak publicly about its operations, come at a turbulent time for Trump Media’s business. Investors, discouraged by the halted merger, have sent the SPAC’s share price plunging from a high of $175 to less than $18 on Friday. Roughly 4 million users follow Trump on the company’s sole product, Truth Social — far below his Twitter peak of 88 million. The company has pledged to investors it would surpass 50 million total users by 2024.
In past public statements, Nunes, Orlando and Trump have argued that Trump Media will ultimately prove to be a successful business. But Wilkerson said he expects its internal problems could lead the company to fall apart.
“We weren’t trying to be Trump Org 2.0,” he said. “We always saw Trump as the rocket fuel to send this thing to space. I wanted this to succeed more than anything. … But these are glaring issues, and they’re threatening me now for calling them out. I couldn’t stay quiet anymore.”
Wilkerson, 38, isn’t a traditional Trump critic.
When Litinsky and Moss, another former “Apprentice” contestant, first started discussing the idea of a multipronged Trump media business after Trump’s November 2020 election loss, the men had asked for his help developing the business, Wilkerson said. A former executive producer for Litinsky’s conservative radio show, Wilkerson was excited about monetizing the following of a person he considered a master marketer with 40 years as a political and household name.
Wilkerson shared a photo from that time of the men sketching the original concept on a whiteboard, titled “Trump’s New Media Empire,” that would ultimately compose the company’s public pitch, including new business lines (“Trump Digital Subscription,” “Trump Documentaries”) and a chain of “Trump technologies,” including in servers and online payments.
After Trump supporters stormed the U.S. Capitol on Jan. 6, 2021, and Trump was banned from major social networks, the men drew up plans for a tech platform that would be “resilient to cancel culture and the impact of bias against the right,” according to the daily log Wilkerson shared with The Post and the SEC.
To meet with Trump, the men sought help from another “Apprentice” contestant, Bradford Cohen, a Florida criminal-defense attorney who represented two rappers, Lil Wayne and Kodak Black, to whom Trump had granted clemency on his final day in the White House.
In late January, three weeks after the riot, Cohen, Litinsky and Moss met with Trump at Mar-a-Lago, his opulent home and club in Palm Beach, Fla., to discuss the idea. Over cheeseburgers, Diet Cokes and ice cream, the men offered to build Trump a media company that he would own 90 percent of without putting in any of his own money, Wilkerson said. He was interested, and Trump Media was born. Cohen and Moss did not respond to requests for comment.
Raising money, however, proved to be a major challenge. The investment bankers they called rejected them because of fears over Trump’s post-election behavior, Wilkerson said. So they started cold-calling SPACs. Known as “blank-check companies,” SPACs sell shares to investors before merging with a private company, allowing the combined business to make money on the stock market without abiding by the traditional transparency requirements of a public listing.
They ultimately found a willing partner in Orlando, a financier in Miami who had recently…
Read More:Whistleblower Will Wilkerson reveals the turmoil inside Trump’s Truth Social
2022-10-15 22:03:00
