Trump Media shares fall after new SEC filing with reaudited financial statement

Trump Media was prompted to hire a new public accounting firm after its previous auditor, BF Borgers CPA, was charged with "massive fraud" by the U.S. Securities and Exchange Commission (SEC). The SEC accused BF Borgers of failing to comply with established auditing standards and falsely representing to clients that their work would meet those standards. This affected more than 1,500 filings. As a result, Trump Media hired Semple, Marchal & Cooper, LLP in early May to replace BF Borgers.

The Securities and Exchange Commission (SEC) charged audit firm BF Borgers CPA PC and its owner, Benjamin F. Borgers, with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards1. The consequences faced by BF Borgers and its owner include:

1. A combined $14 million in civil penalties: The SEC ordered BF Borgers to pay a $12 million civil penalty and its owner, Benjamin Borgers, to pay a $2 million civil penalty5.

2. Permanent suspensions from appearing and practicing as accountants before the SEC: BF Borgers and Benjamin Borgers are no longer allowed to practice before the agency, effectively shutting down the firm5.

3. Implications for BF Borgers' clients: The permanent suspension of BF Borgers has thrown its hundreds of audit clients into turmoil, as they now need to search for a new firm to handle their audits. This has led to disruptions in filing deadlines and potential legal implications for affected companies.

In summary, the SEC's findings have led to significant financial penalties and the permanent suspension of BF Borgers and its owner from practicing before the SEC. Additionally, the firm's clients now face disruptions and challenges in finding new auditors and meeting filing deadlines.