(Reuters) – Former U.S. President Donald Trump’s media technology company said it has replaced its auditor BF Borgers after the U.S. Securities and Exchange Commission (SEC) accused the accounting firm of “massive fraud” on Friday.
Trump Media & Technology Group said in a filing with the SEC on Monday that it switched to Semple, Marchal & Cooper on Saturday. The change was recommended and approved by the company’s audit committee.
Borgers, auditor of parent company Truth Social since 2022, agreed to a $12 million civil penalty and to cease practicing as an SEC accountant, the agency said.
Trump Media looks forward to working with its new audit partners following the SEC’s decision, a company spokesman said in an emailed statement Friday.
According to the SEC, Borgers did not properly maintain or review records, fabricated audit planning meetings, and in some cases deferred previous audits into the current audit period.
Trump Media shares have shown significant volatility since trading began on March 26, prompting the company to send a letter to Nasdaq CEO Adena Friedman last month warning the exchange of “potential market manipulation” of the stock.
The company’s shares fell about 2% in premarket trading.