(Reuters) – The media and technology company owned by former US President Donald Trump said it replaced its auditor, BF Borgers, after the US Securities and Exchange Commission accused the accounting firm of committing “large-scale fraud” on Friday.
Trump Media and Technology Group said in a filing with the Securities and Exchange Commission on Monday that it switched to Semple, Marchal & Cooper on Saturday. The change was recommended and approved by the company's audit committee.
Borgers, Truth Social Parent's auditor since 2022, agreed to a $12 million civil penalty and to cease practicing as accountants in Securities and Exchange Commission filings, the agency said.
Trump Media looks forward to working with its new audit partners following the SEC's decision, a company spokesperson said in an emailed statement on Friday.
According to the SEC, Borgers did not properly maintain and review documentation, held fabricated audit planning meetings, and, in some cases, passed on audits prior to the current audit period.
Trump Media shares have seen significant volatility since they began trading on March 26, prompting the company to send a letter to Nasdaq CEO Adena Friedman last month, alerting the stock exchange to “potential market manipulation” in the stock.
The company's shares fell about 2% in pre-market trading.
