Austin Private Wealth LLC Accused of Shorting Donald Trump Stock

Financial Services Company Faces Scrutiny

Allegations of Short-Selling DJT Stock

Austin Private Wealth LLC, a financial services company, is reportedly under scrutiny for alleged short-selling of 15 million shares of Donald Trump's stock, DJT, via a put option.

Austin Private Wealth is an independent fee-only registered investment advisory firm based in Austin, Texas. The company's mission is to "help our clients prepare for a life of personal and financial freedom."

The allegations against Austin Private Wealth stem from a recent regulatory filing by the Securities and Exchange Commission (SEC). According to the filing, the company entered into a put option contract on DJT stock in March 2023. A put option gives the buyer the right, but not the obligation, to sell a specified number of shares of a stock at a specified price on or before a specified date.

If the price of DJT stock falls below the strike price of the put option, the buyer can exercise the option and sell the shares at a profit. This is known as "short-selling" and is a common trading strategy used by investors to bet on the decline of a stock's price.

The SEC filing alleges that Austin Private Wealth sold the 15 million shares of DJT stock short in order to profit from a decline in its price. The filing also alleges that the company did not disclose its short position to its clients, which is a violation of SEC regulations.

Austin Private Wealth has denied any wrongdoing and has stated that it is cooperating with the SEC's investigation.

The allegations against Austin Private Wealth have raised concerns about the company's investment practices and its commitment to its clients. The SEC's investigation is ongoing, and it is unclear what the outcome will be.