business venture money pit shambolic grift is well underway, and the news is not good.
According to three sources talking to Fox Business, Trump’s Truth Social, which is to Twitter what backyard family reunions are to Tinder, “is stiffing” one of its vendors—for more than $1.5 million since March.
In October, RightForge announced it entered into an agreement to host Truth Social, which Trump helped create after he was banned by Twitter following the Jan. 6 riots. RightForge now contends that Truth Social has reneged on its contractually obligated monthly payments for setting up the platform’s web-servicing infrastructure, according to three people with direct knowledge of the matter.
These people say RightForge contends that Truth Social has made just three payments and ceased making any payments since around March. RightForge claims that Truth Social owes it around $1.6 million and is threatening legal action to recoup the money, these people add.
Surprisingly, neither company denies the conflict.
Granted, it’s likely that Trump’s Truth Social platform, which, as part of Trump’s media company’s merger to a special purpose acquisition company (SPAC) that’s currently at the center of at least two federal investigations, was a lurid grift from the get-go. Of course, that would track with Trump‘s previous experience running a public company, which also looked, to many observers, like a slow-rolling scam.
It didn’t take long for Donald John Trump to betray his shareholders, acting in ways that benefitted himself but harmed the larger business. Trump Hotels and Casino Resorts started with just one Atlantic City casino, but Trump personally held another two outside of the firm. Less than a year after taking the company public, he used it to buy one of his two other casinos, the debt-burdened Taj Mahal, in a deal that valued his stake at $40.5 million. The transaction improved Trump’s personal balance sheet, but the company suddenly had a disastrous amount of debt. As part of the agreement, Trump also collected $51 million of cash and $11 million of stock, in exchange for land that he had previously rented to the company for about 5% of that price annually. A couple of months later, Trump Hotels and Casino Resorts announced that it was going to pony up roughly another $500 million for Trump’s third Atlantic City casino. At the time, one analyst estimated that the property was worth more like $400 million, suggesting Trump was essentially robbing the public company of $100 million. Investors smelled a rotten deal, and shares plummeted 37% within days.
You’re not alone if you’re thinking such behavior feels like something out of Goodfellas.
Surprisingly, neither Trump Social nor RightForge denies the allegations. Of course, Trump is also trotting out his usual excuse for not paying the people he owes: They did a bad job!
It’s unclear if Trump Social is having issues with other vendors over payment for services, these people add. One person with knowledge of the matter said Trump Social informed RightForge that it stopped making the payments over “breach of contract.” FOX Business couldn’t determine the alleged breach.
Okay, the “bad job” excuse makes perfect sense if you’re talking about Rudy Giuliani. At this point you’d get better legal advice from two drunk ferrets fighting over a Ouija board. But that hardly explains all the other vendors Trump has stiffed over the years.
Truth Social also was denied a trademark this week, which can’t be good for Trump’s mood (or his merger).
And if the platform really is in financial trouble—which seems pretty likely, considering it’s run by a litigious dairy farmer—we’ll likely see more evidence of that soon. Because if there’s one thing Trump has never been able to successfully cover up, it’s the fact that he’s a colossal loser and always has been.
Check out Aldous J. Pennyfarthing’s four-volume Trump-trashing compendium, including the finale, Goodbye, Asshat: 101 Farewell Letters to Donald Trump, at this link. Or, if you prefer a test drive, you can download the epilogue to Goodbye, Asshat for the low, low price of FREE.