Tag: conviction
Truth Social

Truth Social Investors (And Trump) Lose Billions In Post-Conviction Stock Plunge

Investors in Truth Social — former President Donald Trump's social media platform — are losing money fast. And financial markets aren't feeling particularly bullish about the stock price of a company whose majority owner is a convicted felon.

According to the latest data from MarketWatch, the price of Trump Media and Technology Group (trading on the Nasdaq Composite as $DJT) is hovering around $33 per share. This is a significant drop from the $51.84 per-share price $DJT posted on May 30 — the day a 12-person jury in New York convicted the former president on 34 felony counts of falsifying business records.

The share's roughly 40 percent decline in value impacts its principal shareholder more than anyone else. The May 30 share price of $51.84 meant Trump's approximately 114.75 million shares in the company (nearly two-thirds of all total shares) were worth roughly $5.9 billion. But as of June 18, those shares are now worth roughly $3.8 billion — meaning Trump's personal net worth has declined by more than $2.1 billion in less than three weeks.

Trump Media and Technology Group has rebounded in the past from slumps in the markets, however. The stock hit a low point of $22.84 per share in mid-April, when jury selection for the former president's New York criminal trial was underway. It rebounded to $54.39 in early May, though it has yet to recover from its current slide. In the immediate aftermath of Trump's guilty verdict, the share's price plunged by nine percent in after-hours trading, marking a drop in net worth of roughly $500 million in roughly 24 hours.

Last month, the company reported a quarterly loss of more than $300 million. However, Truth Social CEO Devin Nunes — a former Republican congressman from California — attributed the poor financials to the company's merger with Digital World Acquisition Group, and downplayed pessimism from investors as a temporary malaise motivated by politics.

"We have consummated our merger and dispensed with the vast bulk of merger-related expenses, leaving the Company well-capitalized and supported by a legion of retail shareholders who believe in our mission to provide a free-speech beachhead against Big Tech censorship," Nunes stated at the time. He added that Trump Media and Technology Group has "more than $200 million in the bank" and "more than 600,000 retail shareholders who believe in our vision."

In April, The Guardian reported that $DJT was becoming a favorite target of "short sellers," or investors who make money by betting that a company's stock will fail. Nunes accused some short sellers of engaging in the illegal practice of "naked" short selling, in which someone shorting the stock does so without first borrowing the shares or insuring that they can be borrowed.

"[Naked short] perpetrators need to be criminally prosecuted, possibly using federal and state RICO statutes," Nunes said in a statement shared with the website Just The News.

Whether Truth Social is a victim of naked short schemes remains unproven. But short sellers may find a continued reliable stock to bet against in $DJT based on its tenuous financial position. In 2023, a regulatory filing with the Securities and Exchange Commission (SEC) showed that the company had losses of $58 million and revenue of just $4.1 million. That SEC filing also showed that the company needed the funding provided by its merger to stay afloat.

Under the merger agreement, Trump can't sell any of his shares for six months. This means he's powerless to liquidate his rapidly declining stake in the company until at least September. The stock's value may decline even further after Trump is sentenced on July 11. While the 34 charges he was convicted on are class E felonies, which don't require jail time, Judge Juan Merchan has the option to sentence the 45th president of the United States to as much as 20 years behind bars.

Reprinted with permission from Alternet.

Pistorius Starts Five-Year Jail Term For Killing Girlfriend

Pistorius Starts Five-Year Jail Term For Killing Girlfriend

Pretoria — South African star athlete Oscar Pistorius was sentenced to five years in prison on Tuesday for killing his girlfriend, in the climax to his sensational trial watched around the world.

The Paralympian sprinter, known as the “Blade Runner”, was led from the dock down to the cells to start his sentence for shooting model Reeva Steenkamp on Valentine’s Day 2013.

“Count one, culpable homicide: the sentence imposed is five years,” Judge Thokozile Masipa told Pistorius in the Pretoria courtroom.

It was a stunning fall from grace for the 27-year-old who made history by becoming the first double amputee Paralympian to compete against able-bodied athletes at the 2012 London Olympics, inspiring millions.

But during his trial, the prosecution painted a darker picture of the sports star, presenting a dangerously volatile young man with a penchant for guns, beautiful women and fast cars.

Lawyers said however that Pistorius will probably not serve the full term for the offense of culpable homicide, equivalent to manslaughter, and perhaps as little as 10 months.

Pistorius, who had wept and vomited at times during his trial, stood stock-still as he was sentenced, veins bulging in his forehead and his jaw muscles clenched.

He was also sentenced to three years, suspended for five years, for accidentally firing a pistol under a table at a restaurant in Johannesburg in January 2013.

Pistorius had testified that he shot Steenkamp, 29, four times through a locked bathroom door at his upmarket Pretoria home after he mistakenly believed she was an intruder.

Prosecutors had argued that he murdered her in a fit of rage after an argument.

– Verdict hotly debated –

As the court adjourned, Pistorius turned to look at the public gallery, then briefly took the hands of his family members before being led by police to the cells.

Amid a media frenzy, he was later taken to a police van which was escorted to Pretoria’s Kgosi Mampuru prison.

“He is already accommodated at Kgosi Mmapuru, in Pretoria,” said correctional services spokesman Manelisi Wolela.

Steenkamp’s family welcomed the sentence, the dramatic end to a trial televised globally that began in March but was repeatedly adjourned.

Steenkamp’s ailing father Barry said he was “very glad” the trial was over and a lawyer for the family said the sentence was “welcome”.

Oscar Pistorius’s uncle said the sprinter’s family accepted the court’s judgement.

“Oscar will embrace this opportunity to pay back to society,” Arnold Pistorius said.

The verdict and the sentence have been hotly debated in South Africa, with many expressing the opinion that Pistorius literally got away with murder.

The Steenkamps’ lawyer Dup de Bruyn told AFP that the sentence will likely be served as two years in prison and three years under house arrest.

A member of Pistorius’s legal team, Roxanne Adams, said he would likely serve a sixth of the five-year term — 10 months — before being transferred to house arrest.

– No decision on appeals –

Neither side indicated immediately whether they would appeal against either the September verdict or Tuesday’s sentence.

State prosecution spokesman Nathi Mncube said they had been disappointed with the conviction for culpable homicide rather than murder.

But he added: “We have not made up our minds whether we are going to appeal or not.”

Adams said the defense had “no comment” on whether it will appeal.

The International Paralympic Committee said Pistorius — who won sprint gold medals at three Games — would not be allowed to compete in the next event in 2016 even if he was released early.

Masipa said she wanted to find a balance between retribution, deterrence and rehabilitation, dismissing defense claims that the disabled athlete would face particular suffering in prison.

“It would be a sad day for this country if an impression were to be created that there was one law for the poor and disadvantaged and another for the rich and famous,” said Masipa.

She also weighed the ability of Pistorius to cope with incarceration given his physical disability.

“Yes the accused is vulnerable, but he also has excellent coping skills,” she said.

Discussing the gravity of Pistorius’s crime, the judge said he had been guilty of “gross negligence”.

“Using a lethal weapon, a loaded firearm, the accused fired not one, but four shots into the door,” said Masipa.

“The toilet was a small cubicle and there was no room for escape for the person behind the door,” she said.

The prosecution had called for 10 years in jail for the athlete, while the defense pleaded for house arrest and community service.

But Masipa said a community service order “would not be appropriate”.

With the conviction and sentence, Pistorius has lost his glittering sports career, lucrative contracts and — above all — his hero status, tarnished forever.

AFP Photo/Kim Ludbrook

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California Bans Paparazzi Drones

California Bans Paparazzi Drones

Los Angeles (AFP) — California approved a law which will prevent paparazzi from using drones to take photos of celebrities, among a series of measures aimed at tightening protection of privacy.

Governor Jerry Brown signed into law a string of legislative bills also including an expansion of one against so-called “revenge porn,” when former lovers share nude photos of their exes online.

The drone ban bill, which is aimed at shoring up privacy for the general public but will work equally well for celebrities, was authored by lawmaker Ed Chau.

“As technology continues to advance and new robotic-like devices become more affordable for the general public, the possibility of an individual’s privacy being invaded substantially increases,” he said.

“I applaud the governor for signing (the law) because it will ensure that our state’s invasion of privacy statute remains relevant even as technology continues to evolve,” he added on his website.

California passed a “revenge porn” law last year, making it illegal to post naked pictures of an ex-partner online and setting a jail term of up to six months for anyone convicted.

The new law signed Tuesday allows victims of revenge porn to seek damages in civil court, and also to seek a restraining order to get the offending photos taken down from the Internet.

The bill also expands the ban to include “selfie” photos.

“Rather than having to argue in court on the grounds of invasion of privacy… lawyers can now pursue relief by directly showing the images were sent without the consent of the victim,” said the bill’s author Bob Wieckowski.

AFP Photo/Michel Comte

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Ex-Detroit Mayor Kwame Kilpatrick Appeals Corruption Conviction

Ex-Detroit Mayor Kwame Kilpatrick Appeals Corruption Conviction

By Tresa Baldas, Detroit Free Press

DETROIT — Almost a year into his lengthy prison term, former Detroit Mayor Kwame Kilpatrick is asking a federal appeals court to toss his conviction and grant him a new trial.

The disgraced ex-mayor, who is serving a 28-year prison term for public corruption, argued in court documents filed Wednesday that he didn’t get a fair trial for three reasons:

— He was forced to go to trial with a lawyer he didn’t want — and shouldn’t have had — due to a conflict of interest.

— The nearly $4.7 million he was ordered to pay in restitution was not authorized under federal law.

— The judge erred in allowing two FBI agents to offer their opinions to jurors about what Kilpatrick’s and others’ text messages meant and how texts and phone calls showed the ex-mayor was involved in crooked contracts.

“Kilpatrick was denied a fair trial because the court allowed the two case agents to testify 23 times and ‘spoon-feed’ the jury the prosecution theory of the case based on the agents’ review of all the text messages, recorded calls, and documents, (which) the jury never had the opportunity to review on their own and to use to draw their own conclusions,” Kilpatrick’s lawyer, Harold Gurewitz, argued in the filing with the 6th U.S. Circuit Court of Appeals.

The 80-page filing focused heavily on Kilpatrick’s longtime defense attorney James Thomas, whom Kilpatrick tried to get thrown off the case at the start of his trial, citing a conflict of interest. Thomas and his associate were working for a law firm that was suing Kilpatrick for the same alleged crimes of which Thomas was defending him.

At Kilpatrick’s request, Thomas asked U.S. District Judge Nancy Edmunds to withdraw from the case. But Edmunds denied it, noting that when Kilpatrick ran out of money and couldn’t afford a lawyer, he requested Thomas, so he got him. Edmunds also found that Thomas had been a good and effective lawyer for Kilpatrick.

Thomas represented Kilpatrick throughout the six-month trial, which ended with Kilpatrick getting convicted in March 2013 on 24 counts for crimes including racketeering, extortion, and bribery. He was sentenced to 28 years in prison.

Thomas was not readily available for comment.

Two months after the guilty verdict, Kilpatrick officially dumped Thomas, telling Edmunds that “a grave error” occurred in his case and that he needed a new lawyer.

Thomas agreed that it was time for him to step down.

Edmunds appointed Gurewitz to handle Kilpatrick’s case.

“Among the basic duties owed by a criminal defense lawyer to his client are the duty of loyalty, the duty to avoid conflicts of interest, and the overarching duty to advocate the defendant’s cause,” Gurewitz wrote in the latest filing.

Photo via WikiCommons

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