Trump Media Group dismisses accounting firm amid allegations of being a 'fraudulent audit company'.
It was predicted and demanded by regulators that BF Borgers would be let go. The accounting firm failed to react to a request for a statement.
In a statement, Trump Media declared on Friday that it had "dismissed" BF Borgers as their independent registered public accountancy firm. This day also saw the SEC accuse BF Borgers and its owner of pervasive fraud, calling the firm a "fake audit mill".
Trump Media announced on Saturday the hiring of Semple, Marchal & Cooper to replace BF Borgers.
In the filing, Trump Media stated that BF Borgers' audit reports on the company's financial records for 2022 and 2023 did not include an adverse opinion and there were no conflicting views on accounting matters.
The dismissal of BF Borgers wasn't optional for Trump Media or any of the other corporations that had used the firm. The SEC warned on Friday that these companies will be required to seek out new accounting firms.
BF Borgers had served as Trump Media's independent registered accountancy firm before the company went public in March. Afterward, in March, Trump Media brought in BF Borgers as its accountancy firm for the public company.
The SEC did not allege that Trump Media had done anything wrong or mentioned the company in its charges. The audit review merely focused on public firms, meaning BF Borgers' work for Trump Media when it was a private company was not considered.
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Trump Media Group's decision to dismiss BF Borgers as their accounting firm was influenced by the allegations of fraudulent auditing practices. Businesses in similar situations may want to reconsider their investing strategies with their current financial advisors.
In the wake of the SEC's accusations against BF Borgers, corporations like Trump Media Group will need to invest in new accounting firms to ensure financial transparency and regulatory compliance.
Source: edition.cnn.com
