Trump Media & Technology Group, the entity behind the social media platform Truth Social, is facing a setback in its Securities and Exchange Commission (SEC) reporting due to the alleged fraudulent activities of its former auditing firm. The company has announced that it will miss the regulatory deadline for filing its quarterly report, known as form 10-Q, attributing the delay to the transition to a new auditor and the substantial time required to complete a review of its financial statements.
This development comes in the wake of the SEC’s charges against BF Borgers, Trump Media’s prior auditor, accused of “massive fraud” earlier this month. The SEC’s allegations suggest that the firm failed to adhere to accounting standards and subsequently misrepresented compliance in their reports. Consequently, BF Borgers has settled with the SEC, agreeing to pay a $12 million civil penalty. Additionally, Benjamin Borgers, the owner of the auditing firm, has been fined $2 million and is permanently prohibited from practicing as an accountant for any SEC filings.
Trump Media transitioned to a new auditing firm, Semple, Marchal & Cooper, on May 3, the day after BF Borgers was dismissed. This shift has caused a delay in the filing of Trump Media’s financial performance report for the quarter ended March 31. The company’s notification of late filing to the SEC expressed that it was “unable without unreasonable effort and expense” to complete the review of its financial statements promptly due to the new auditor appointment’s timing.
The fluctuation of Trump Media’s stock has been a point of contention, with shares closing down 1.6% on the day of the announcement despite a broader market uptick. The stock, trading under the ticker symbol DJT, has experienced significant volatility since its initial public offering in March, with its price swinging from a high of $70 per share at its debut to around $35 per share later in April.
Amid these financial uncertainties, Devin Nunes, the CEO of Trump Media & Technology Group and a former GOP congressman, has reached out to Congress with a request to investigate alleged market manipulation of the company’s stock. Nunes contends that there are strong indications of unlawful manipulation, including “naked” short selling, which involves selling shares without owning them.
Relevant articles:
– Trump Media Will Miss SEC Deadline After Ex-Auditor Is Banned Over ‘Massive Fraud’ Charges, Forbes, 05/16/2024
– Trump Media says it will delay quarterly filing due to auditor change, CNN, 05/16/2024
– Trump Media says it will delay quarterly filing due to auditor change, SaltWire NS, 05/15/2024
– Trump’s Truth Social company asks Congress to investigate alleged market manipulation of stock, Yahoo News Australia, 05/16/2024
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