Financial Associated Press, May 4 (editor Ma Lan) Trump Media and Technology Group (DJT) announced a partnership with BF Borgers, an audit firm, about a month ago. However,JungleJackpotJauntOn Friday, the audit firm was shut down by the Securities and Exchange Commission for "mass fraud."
The Securities and Exchange Commission (SEC) accused BF Borgers of intentional and systematic errors, including falsifying audit documents and falsely stating to clients that its work would comply with accounting standards.
SEC pointed out that the company conducted between January 2021 and June 2023.JungleJackpotJauntA large number of misconduct, affecting more than 1500 SEC filings and more than 500 listed companies.
Gurbir Grewal, head of law enforcement at the Securities and Exchange Commission, said BF Borgers would face severe penalties and that the fake audit factory had been permanently closed.
But SEC did not accuse Trump media of being actively or passively involved in illegal operations because of BF Borgers. DJT said it had sought to cooperate with the new audit firm to carry out normal business activities.
be implicated in trouble
According to SEC, Trump Media is probably BF Borgers's best-known customer, while BF Borgers had 350 customers before the seizure.
BF Borgers Trump Media served as an independent certified public accounting firm for the social media company before it went public in March, according to the documents. In late March, Trump's media audit committee approved the hiring of BF Borgers as an accounting firm for the listed company.
According to SEC's survey of the public documents of BF Borgers's previous 369 customers, at least 75 per cent of its customers did not comply with accounting standards. But these investigations are limited to publicly listed clients, so it is not clear whether BF Borgers acted irregularities when BF Borgers was the auditor of Trump's media private company.
SEC said BF Borgers had agreed to pay a fine of $12 million, while its owner, Benjamin F. Borgers, also agreed to pay a personal fine of $2 million.
Although the dirty water of BF Borgers did not spill on Trump Media, it still raised some doubts in the market. The company's shares fell as much as 6% on Friday.JungleJackpotJaunt.7%, the decline narrowed to 1% at the close.JungleJackpotJaunt.54%.
Trump Media now has a market capitalization of more than $6 billion, but its income is too small to support the valuation. Meanwhile, the average number of US daily active users of Trump Media's social app Truth Social on iOS and Android fell 19 per cent in April from a year earlier, to only 1/300 of X, according to Similarwe, a data intelligence company.