Trump Media and Technology Group will miss a deadline to file a required Securities and Exchange Commission form, as per a recent filing from the company. The SEC had accused the company’s previous auditing firm of “massive fraud” earlier this month, alleging that the firm failed to comply with accounting standards. Trump Media, the parent company of Truth Social, submitted a notification of late filing to the SEC, citing the inability to provide the required form due to the new auditor needing more time to properly review.
The late filing in question is form 10-Q, a financial performance report that must be submitted to the SEC each quarter. Trump Media stated that it was “unable without unreasonable effort and expense” to complete the review of its financial statements because of the timing of appointing a new auditing firm, Semple, Marchal & Cooper. This notification comes after the SEC banned the previous auditor, BF Borgers, due to allegations of fraud. The dismissal of BF Borgers occurred just a day before Semple, Marchal & Cooper was hired as the new auditor.
Trump Media’s current net worth is estimated at $7.9 billion, with much of his wealth derived from real estate holdings and shares in Trump Media. However, the shares in Trump Media cannot be sold until the end of a six-month lockup period. Despite broader market gains, Trump Media’s stock closed down 1.6% on Wednesday at $52.21 per share. The media company’s shares have experienced significant fluctuations since its initial public offering in March, trading at $26.21 per share just a month prior.
The previous auditing firm, BF Borgers, faced charges of fraud earlier this month for allegedly failing to comply with required accounting standards. The charges were settled by BF Borgers for $12 million, with the firm’s owner, Benjamin Borgers, agreeing to a $2 million penalty. Additionally, Borgers and his firm are permanently barred from practicing as accountants. The SEC claimed that the fraud scheme had an impact on over 1,500 SEC filings.
For further information, individuals can refer to Forbes articles such as “Trump Media’s Auditing Firm Charged With ‘Massive Fraud’ By SEC” and “Trump Stock Jumps More Than 10%—Boosting His Net Worth To An All-Time High.” These articles provide additional insights into the recent developments surrounding Trump Media and the challenges it is currently facing with its auditing process and financial disclosures.
