Omar Marks | Light Rocket | Getty Images
Trump Media hired a new auditor Over the weekend, after his former public accounting firm was indicted on Friday for massive fraud Securities and Exchange Commission.
The owner of Truth Social fired BF Borgers CPA after the SEC accused the firm of failing to conduct actual audits of its clients before signing on to more than 1,500 regulatory filings at the public company.
Trump Media said it has participated Semple, Martial and Cooper LLP replaces BF Borgers on Saturday.
As part of a settlement with regulators, BF Borgers and its owners agreed to a permanent ban on audits of public companies.
The injunction requires Trump Media and other public companies that have used BF Borgers to find new auditors.
“The decision to change the independent registered public accounting firm was made with the advice and approval of the Company’s Audit Committee,” Trump Media said in an 8-K filing announcing the new auditor on Monday.
Former President Trump owns 65% of Trump Media stock, which trades under his initials DJT.
A Trump Media spokesman did not immediately respond Monday when CNBC asked if the company planned to ask Semple, Marchal & Cooper to review past work done by BF Borgers to determine whether the firm violated auditing industry standards in the Trump Media case.
CNBC also asked for comment from Phoenix-based Semple, Marchal, which has “established itself as a preeminent and highly respected CPA firm” over four decades in business, according to its website.
The U.S. Securities and Exchange Commission called BF Borgers a “bogus audit mill” in its civil regulatory action, accusing the Lakewood, Colorado-based company and its owner, Benjamin Borgers, of “willfully” and “systematically” failing to comply with Public accountants conduct audits and quarterly reviews to firm standards.
The committee said Friday that Boggs’ systemic failure to properly audit its clients affected the SEC filings of more than 500 public companies.
The financial information signed by Boggs was included in more than 1,500 SEC filings from early 2021 to mid-2023.
BF Borgers and its owners agreed to pay fines totaling $14 million.
Trump Media was not yet publicly traded when BF Borgers’ alleged conduct occurred. But the firm served as an auditor for Trump Media during that time.
The SEC also said Friday that reports filed by companies using BF Borgers “do not necessarily need to be revised solely as a result” of the commission’s cease-and-desist order.
“However, issuers should consider whether they need to amend their filings to address any reporting deficiencies arising from BF Borgers’ involvement,” the SEC said.
Trump Media Company said in a filing with the SEC on Monday that “BF Borgers’ audit report on the company’s consolidated financial statements for the fiscal years ended December 31, 2023 and 2022 does not contain an adverse opinion or disclaimer. opinion and does not qualify or modify the scope of the audit or accounting principles.
“There are no divergences during the fiscal years ended December 31, 2023 and 2022 and subsequent interim periods as of the date of this report, as that term is defined in Item 304(a)(1)(iv) of Regulation SK Any disagreement between the Company and BF Borgers as defined in the Company on any issue of accounting principles or practices, financial statement disclosures, or audit scope or procedures, if these disagreements are not resolved to the satisfaction of BF Borgers, will result in BF Borgers notifying the Company in its audit report. ,” Trump Media said in the document.
Shares of Trump Media became publicly traded on March 26 after the company completed its merger with Digital World Acquisition Corp., a previously publicly traded shell company.
This is developing news. Please check back for updates.
About The Author
