Trump Media and Technology Group is set to miss a deadline to file a required Securities and Exchange Commission form after the SEC accused the company’s previous auditing firm of “massive fraud.” The company submitted a notification of late filing to the SEC, citing its new auditor, Semple, Marchal & Cooper, needing more time to review the financial statements. This late filing pertains to form 10-Q, a financial performance report required by the SEC each quarter.
Trump Media’s former auditor, BF Borgers, was dismissed on May 3 after being accused of failing to comply with accounting standards and falsely claiming it did so. The charges were settled for $12 million, and the firm’s owner, Benjamin Borgers, agreed to a $2 million penalty. The fraud scheme impacted over 1,500 SEC filings, leading to Borgers and his firm being permanently barred from practicing as accountants. The timing of the new auditing firm’s appointment prevented Trump Media from completing the financial statement review on time.
Despite broader market gains, Trump Media’s stock closed down 1.6% on Wednesday at $52.21 per share. The company’s shares have been volatile since its initial public offering in March, trading under the ticker symbol DJT. Trump’s net worth is estimated at $7.9 billion, with a significant portion tied to his real estate holdings and shares in Trump Media. However, these shares cannot be sold until the end of a six-month lockup period.
Investors and analysts are closely monitoring Trump Media’s financial performance and stock movement following the recent fraud allegations against its former auditor. The company’s late filing to the SEC raises concerns about its financial transparency and compliance with accounting standards. The impact of this delay on Trump Media’s stock price and overall market performance remains to be seen, as the company navigates through these challenges and works with its new auditing firm to complete the required financial statements.
For more information on the fraud allegations and the implications for Trump Media’s operations, investors can refer to Forbes articles that provide detailed insights into the company’s financial situation and the regulatory issues it is facing. Despite these challenges, Trump Media continues to operate Truth Social and other platforms under its umbrella, attracting attention and scrutiny from both investors and industry observers.
