Partners at EF Hutton, the Firm Backing Truth Social, Spent Money on Prostitutes, Drugs, Strippers and Gambling, Lawsuits Say

Skip to Main ContentNewslettersCrosswordSUBSCRIBEALLCSCHEAT SHEETNEWSLETTERSLOG INCheat SheetMediaObsessedRoyalsPoliticsOpinionInnovationU.S. NewsScoutedMy AccountManage NewslettersSubscription OffersNeed Help?LogOutHOMEPAGETrumplandTruth Social’s Bank Spent Funds on Prostitutes, Drugs and Strippers BANKERS BEHAVING BADLYThe partners of the firm that backed Donald Trump’s IPO this spring also allegedly lost millions of dollars gambling, according to two lawsuits.Janna BrancoliniPublished Oct. 24 2024 12:24PM EDT Carlos Barria/Carlos Barria/ Reuters Janna BrancoliniGot a tip? Send it to The Daily Beast here.Trending NowPoliticsTrump Signs New Order to Vastly Expand His Presidential PowersYasmeen HamadehMediaCNN Host Asks Hysterical Stephen Miller to ‘Calm Down’ in Live InterviewYasmeen HamadehMediaAnti-Trump Podcast Dethrones Joe Rogan at Top of the ChartsJulia OrnedoPoliticsDOGE’s Shocking $8 Billion Dollar Mistake Called OutJosh FialloU.S. NewsJFK’s Grandson Freaks Out After Trump Order Closes Kennedy LibraryKenneal PattersonTrending NowPoliticsTrump Signs New Order to Vastly Expand His Presidential PowersYasmeen HamadehMediaCNN Host Asks Hysterical Stephen Miller to ‘Calm Down’ in Live InterviewYasmeen HamadehMediaAnti-Trump Podcast Dethrones Joe Rogan at Top of the ChartsJulia OrnedoPoliticsDOGE’s Shocking $8 Billion Dollar Mistake Called OutJosh FialloU.S. NewsJFK’s Grandson Freaks Out After Trump Order Closes Kennedy LibraryKenneal Patterson



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>Partners at the Wall Street firm backing Donald Trump’s social media platform Truth Social used company funds to pay for prostitutes, abused drugs, partied with strippers and lost millions of dollars gambling, according to a new report in the Wall Street Journal.  
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>EF Hutton is also being investigated for securities fraud, and investors have accused its brokers of pushing speculative investments, according to competing lawsuits filed by two of the firm’s partners. (...)  
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>Trump Media’s lone product, Truth Social, was launched in Feb. 2022. This April, EF Hutton helped take Trump Media public. To celebrate, the firm hosted a party in Palm Beach, Fla., and one of the founding partners capped off a night of partying by accidentally using company funds to pay a prostitute $500, according to one of the lawsuits.  
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>When the payment set off alarms at the firm, the partner allegedly tried to cover it up. (...) Trump owns 59 percent of Trump Media stock (...) The company lost a staggering $58 million in 2023, according to SEC filings, despite claiming to be valued at several billion dollars.  
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>Internal whistleblowers have also accused Truth Social’s parent company of hiring foreign contractors instead of Americans—despite Trump’s campaign promise to impose stiff tariffs on companies that outsource labor abroad.