Trump Media and Technology Group, the owner of social networking site Truth Social, has terminated its auditor, BF Borgers, following recent charges of 'massive fraud' by federal regulators. The Securities and Exchange Commission accused BF Borgers and its owner, Benjamin F. Borgers, of 'deliberate and systematic failures' in over 1,500 audits, leading to a settlement of $14 million in civil penalties and permanent suspensions from handling SEC-related matters.
The dismissal of BF Borgers came on the same day as the SEC charges, prompting Trump Media to engage Arizona-based accountant Semple, Marchal & Cooper as the replacement auditor. Notably, the charges against BF Borgers do not involve any work performed for Trump Media.
BF Borgers was appointed as Trump Media's auditor on March 28, as disclosed in a recent annual report filing. Prior to this, the Colorado firm had also conducted audits for Trump Media before its merger with Digital World Acquisition Corp.
This change in auditors marks the latest in a series of transitions for Trump Media, which had previously parted ways with two other auditing firms. One auditor resigned in July 2023, while another was terminated by the board in March, coinciding with the re-hiring of BF Borgers.
Trump Media stated in a regulatory filing that the decision to switch auditors was made with the recommendation and approval of the Audit Committee. The company did not provide further comment on whether Semple, Marchal & Cooper would review BF Borgers' previous work for Trump Media.
Both BF Borgers and Semple, Marchal & Cooper have yet to respond to requests for statements regarding the recent developments.
