The accounting firm was accused of being a sham audit mill

CNN

Truth Social owner Trump Media & Technology Group announced Monday it fired BF Borgers after US regulators accused the accounting firm of “massive fraud.” The decision to fire BF Borgers was expected and required by regulators.
The accounting firm did not respond to a request for comment.
Trump Media said in a filing that it “dismissed” BF Borgers as its independent registered public accounting firm on Friday.
Firing BF Borgers wasn’t optional for Trump Media or any other public company that used the firm.
BF Borgers served as Trump Media’s independent registered accounting firm before the company went public in March.
Later in March, Trump Media hired BF Borgers as the public company’s accounting firm.
The SEC did not accuse Trump Media of any wrongdoing, nor did it mention the company in its charges.
The SEC review only focused on public companies, meaning BF Borgers’ work for Trump Media when it was private was not included.

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Trump Media and Technology Group, the owner of Truth Social, declared on Monday that it had fired BF Borgers following allegations of “massive fraud” by US regulators against the accounting firm. “.

Regulators anticipated and demanded that BF Borgers be fired. When contacted for comment, the accounting firm remained silent.

Friday, BF Borgers was “dismissed” by Trump Media as its independent registered public accounting firm, according to a filing. On that same day, BF Borgers and its owner were accused by the Securities and Exchange Commission of running a “sham audit mill” and of committing widespread fraud. “.

Semple, Marchal & Cooper was hired by Trump Media on Saturday to take BF Borgers’ position, the company said.

Trump Media claimed in the filing that there were no differences over accounting issues and that BF Borgers’ audit reports on the business’s financial statements for 2022 and 2023 did not include an unfavorable opinion.

For Trump Media or any other publicly traded company that employed the company, firing BF Borgers was an absolute must. Public corporations were notified by the SEC on Friday that they would have to select new accounting firms.

Before going public in March, Trump Media’s independent registered accounting firm was BF Borgers. Trump Media selected BF Borgers to serve as the public company’s accounting firm later in March.

In its charges, the SEC made no mention of Trump Media and made no accusations against the company. The work that BF Borgers did for Trump Media while it was a private company was excluded from the SEC review because it only examined public companies.

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