Trump Media Misses SEC Deadline After Ex-Auditor Is Banned Over Fraud Charges

Trump Media and Technology Group will not meet the deadline to submit a necessary Securities and Exchange Commission form, as stated in a filing made by the company on Wednesday.

This comes after the SEC accused the company’s former auditing firm of “massive fraud” earlier in the month, alleging non-compliance with accounting standards.

The parent company of Truth Social, Trump Media, informed the Securities and Exchange Commission about a delay in filing, citing the inability to meet the deadline due to the new auditor needing more time for a thorough review.

The delayed submission pertains to form 10-Q, a quarterly financial performance report mandated to be filed with the SEC.

Trump Media stated in the Wednesday filing that it was “unable without unreasonable effort and expense” in completing the review of its financial statements because of the timing of appointing the new auditing firm, Semple, Marchal & Cooper.

Following the SEC’s ban on its previous auditor, BF Borgers, Trump Media issued a late filing notice. BF Borgers was replaced by Semple, Marchal & Cooper on May 3, the day before the new auditor was appointed.

Trump’s estimated net worth stands at $7.9 billion, ranking him as the 331st wealthiest individual globally.

His wealth is primarily derived from real estate investments and ownership in Trump Media, with restrictions preventing the sale of shares until the conclusion of a six-month lockup period.

Despite overall market gains, Trump Media’s stock closed down by 1.6% on Wednesday, settling at $52.21 per share.

Since its initial public offering in March, the media company’s shares, traded under the symbol DJT, have experienced significant volatility and deviated from market trends.

Just a month ago, the stock was valued at $26.21 per share. BF Borgers faced fraud charges this month for purportedly failing to adhere to accounting standards and falsely claiming compliance.

The charges were resolved with a $12 million settlement by BF Borgers and a $2 million penalty by the firm’s owner, Benjamin Borgers.

Both Borgers and the firm are permanently prohibited from practicing as accountants, as per the SEC, which asserted that the fraudulent activities impacted over 1,500 SEC filings.