DiamondPeak Holdings Corp

DiamondPeak Holdings Corp, a Delaware-based SPAC, merged rapidly with Ohio electric truck maker Lordstown Motors in 2020, raising $675 million to fund production. Valued at $1.6 billion, the merger attracted major institutional investors but faced allegations of misleading pre-order claims and inflated valuations. Subsequent investigations by the SEC and lawsuits exposed significant regulatory failures, financial opacity, and governance issues. The case highlights the exploitation of SPAC structures in the US as vehicles for potential asset concealment and investor deception amid weak anti-money laundering enforcement and political complacency.

DiamondPeak Holdings Corp, a Delaware-based SPAC incorporated in 2019, epitomizes the United States’ systemic financial opacity and its weak anti-money laundering enforcement, especially in SPACs and shell structures used as “blank check” vehicles. The rapid reverse merger with Lordstown Motors raised hundreds of millions with misleading valuation claims and dubious operational progress, enabling potential asset concealment and investor harm. The involvement of large institutional investors and Wall Street executives contrasts with the lack of transparent beneficial ownership details, facilitating financial obscurity and political complicity by regulators failing to adequately police these vehicles. While no direct PEP or criminal ties to DiamondPeak are confirmed, the company’s use as a shell vehicle within a flawed US regulatory framework raises significant red flags about potential laundering or illicit financial flows camouflaged through SPAC maneuvers.

Jurisdiction of Registration

United States (Delaware Corporation)

Incorporation Date

2019 (IPO date February 28, 2019)

Registered Address

40 West 57th Street, New York, New York, 10019, United States

Directors / Shareholders

CEO: David T. Hamamoto (also Chairman)
Institutional Shareholders include significant investors such as Fidelity Management & Research Company, Wellington Management Company, Federated Hermes Kaufmann Small Cap Fund, BlackRock, and Integrated Core Strategies (linked to Millennium Management LLC and Israel A. Englander) with reported holdings of 4.8% shares as of 2019.

Beneficial Owner(s)

Institutional investment funds (as noted above)
Specific beneficial ownership beyond institutional shareholders is opaque; suspected but not confirmed due to typical SPAC and shell structures.

Linked Individuals

No publicly confirmed PEPs linked directly to DiamondPeak Holdings Corp
Key executives involved are Wall Street and institutional investors; no direct criminal links confirmed but suspicious SPAC vehicle usage noted

Linked Entities

Lordstown Motors Corp (merged via reverse merger in October 2020, resulting in Lordstown becoming the publicly traded company successor to DiamondPeak)
Likely involvement in layered shell structures typical of SPACs (Special Purpose Acquisition Companies), which are often criticized as “blank check” and “clean shell” entities used to obscure financial sources

Purpose

The SPAC was used as a vehicle to take Lordstown Motors public, raising around $675 million through the merger and private investment in public equity (PIPE)
Suspected use includes asset concealment, capital raising with limited transparency, and potential overvaluation to benefit insiders and select investors
Weak AML controls and broad financial opacity make SPACs like DiamondPeak attractive shells for potentially laundering or obfuscating financial flows

Red Flags Identified

Use of SPAC/blank check company structure known for minimal upfront disclosure and regulatory gaps
Overvaluation of Lordstown Motors in merger (implied $1.6 billion equity value), while Lordstown’s operational viability was questionable (e.g., misleading pre-orders, failure to meet production goals)
Rapid merger process (closed in 11 weeks) with SEC scrutiny for misrepresentations
Involvement of institutional investors and executives with significant market power but without clear beneficial ownership transparency
Lack of detailed disclosure on beneficial owners and transaction funding sources (a common US SPAC opacity feature)
No direct PEP links but political-complicity critiques apply widely to US financial environment allowing SPAC and shell misuse

Estimated Amount Laundered

Direct laundering amount unknown
Approximately $675 million raised through the SPAC merger and PIPE investments, with suspicion on possible misuse for asset concealment or fraud

Involvement in Investigations or Leaks

Investigation ongoing regarding potential breaches of fiduciary duty by DiamondPeak’s board in the Lordstown merger
Lordstown Motors and the merger with DiamondPeak under SEC scrutiny for misstatements and misleading investor information
No direct exposure in Panama Papers or FinCEN Files publicly attributed to DiamondPeak, but the broader SPAC use invites suspicion from those leaks’ themes of financial opacity

Regulatory Actions / Legal Proceedings

SEC investigation into merger-related misrepresentations by Lordstown and DiamondPeak
Litigation initiated relating to breaches of fiduciary duties and misleading disclosures in merger announcements
Lordstown Motors filed for bankruptcy in 2023; class-action lawsuits associated with securities allegations ongoing against executives and DiamondPeak board members

Sources

DiamondPeak Holdings Corp

Country of Incorporation:

United States

Year of Incorporation:

Registered Address:

40 West 57th Street, New York, New York, 10019, United States

Legal Structure / Entity Type:

Delaware Corporation, Special Purpose Acquisition Company (SPAC)

Linked Real Estate Assets:

Suspected but not confirmed involvement in real estate asset overvaluation or concealment

Linked Corporate Entities:

Lordstown Motors Corp (successor via reverse merger); potential other layered SPAC shells

Known Beneficial Owners:

Institutional investors including Fidelity, Wellington, Federated Hermes, BlackRock; individual beneficial ownership opaque

PEPs Linked:

N/A

Involved in Laundering Schemes?:

Known Bank Accounts or IBANs:

Not publicly disclosed

Law Firm or Agent Used:

Legal counsel and underwriters include Goldman Sachs & Co. LLC; other standard corporate agents

Related Offshore Leak :

No direct linkage to Panama Papers or other offshore leaks publicly confirmed

Status of Entity:

Inactive

Year of Dissolution (if any):

Jurisdiction:

United States (Delaware corporate law)

AML Network Risk Rating:

🔴 High Risk