Trump Media & Technology Group, owner of Truth Social, announced the firing of accounting firm BF Borgers after US regulators accused them of “massive fraud.” Trump Media confirmed the decision to dismiss BF Borgers, as required by regulators, and the accounting firm did not respond to requests for comment. The Securities and Exchange Commission had charged BF Borgers and its owner with widespread fraud, labeling them as operating a “sham audit mill.”
The decision to replace BF Borgers with Semple, Marchal & Cooper was made by Trump Media on Saturday, following the SEC charges against the former accounting firm. In a filing, Trump Media stated that BF Borgers’ audit reports for the company’s financial statements did not contain any adverse opinions or accounting disagreements for the years 2022 and 2023. The SEC’s directive for public companies that had been using BF Borgers to find new accounting firms meant that Trump Media had no choice but to sever ties with them.
Prior to going public in March, BF Borgers had served as Trump Media’s independent registered accounting firm. However, Trump Media switched to hiring BF Borgers as their accounting firm for the public company after the IPO. Despite the SEC charges against BF Borgers, the SEC made no mention of Trump Media in their allegations, focusing solely on public companies while excluding the private work that BF Borgers had done for Trump Media.
The firing of BF Borgers had not been optional for Trump Media or any other public company that had been using the accounting firm. The SEC’s warning to public companies regarding the need to find new accounting firms was a response to the charges of fraud levied against BF Borgers. Trump Media complied with this directive by hiring new accounting firm Semple, Marchal & Cooper to replace BF Borgers following the dismissal.
Although Trump Media did not face any accusations of wrongdoing from the SEC in relation to their association with BF Borgers, the replacement of the accounting firm was a proactive step taken to ensure compliance with regulatory requirements. Moving forward, Trump Media will be working with Semple, Marchal & Cooper, their new independent registered public accounting firm, as they navigate the aftermath of the SEC’s charges against BF Borgers.