Trump Media & Technology Group Corp. DJT shares are trading lower on Friday after the U.S. Securities and Exchange Commission charged the company’s audit firm with “massive fraud.”
The regulatory body 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) standards.
The charges were regarding audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023, according to a statement.
“Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets,” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement.
According to the company’s website, Trump Media’s auditor is BF Borgers (under “Who is Trump Media’s Independent Auditor?” section).
The SEC’s significant action has sparked concerns regarding the accuracy of financial data in numerous reports audited by Borgers, including those of Trump Media, of which former President Donald Trump is a majority owner.
The SEC’s investigation was conducted by Taryn Lewis, Jake Schmidt and Ann Tushaus of the Chicago Regional Office, and was supervised by Brian Fagel.
To settle the SEC’s charges, BF Borgers agreed to pay a $12 million civil penalty, and Benjamin Borgers agreed to pay a $2 million civil penalty. Respondents also agreed to permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately.
The shocking turn occurred when Trump Media CEO Devin Nunes was in the headlines for accusing certain brokerage firms of potential stock manipulation and anomalous trading.
To address the issue, Nunes wrote a letter to the U.S. House of Representatives, addressing each of the chairmen of the U.S. House of Representatives Committee on the Judiciary, Committee on Financial Services, Committee on Ways and Means, and Committee on Oversight and Reform.
Price Action: DJT shares are trading lower by 5.63% to $45.94 at last check Friday.
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