Trump Media Auditor Shutdown Delays Company's IPOs, Earnings

Stay informed with free updates

Simply sign up for myFT Digest Professional Services – delivered straight to your inbox.

The closure of the accounting firm behind former US President Donald Trump's social media group threatens to derail the plans of a number of companies to go public and force dozens of listed companies to delay their financial results.

The Securities and Exchange Commission this month charged BF Borgers, one of the most widely used auditors in the United States, which was previously used by Trump Media & Technology Group and its founder, with falsely representing to its clients that its audit work would comply with American standards. He accused it of massive fraud and said three-quarters of its audits were flawed.

The sudden closure of Borger sent shockwaves through the US small-cap sector at the height of earnings season. Nine microcap companies planning an IPO were clients of the now-disgraced firm, while about 170 public companies that had hired Borgers suddenly found themselves in need of a new accountant.

The ripple effect has been significant, said Agnes Cheng, an accounting professor at the University of Oklahoma's John T Steed School of Accounting. She compared Borgers to a little Arthur Andersen, the auditor who collapsed more than 20 years ago after becoming embroiled in the Enron scandal.

Borgers' nine former clients, including drone operator Droneify Holdings, UAE robotics company Micropolis Robotic and blockchain group TessPay, hoped to raise a total of $150 million through public offerings, documents show. analyzed by the research and asset management company Renaissance Capital, which is handling the IPO. targeted exchange-traded funds.

Each of these companies must now have their accounts re-audited by a new auditor. It's unclear how many have found replacements.

Florida-based Key Mining, which mines copper and titanium in Chile, was due to list in New York this week but failed to do so. The company declined to comment. None of the other eight companies responded to requests for comment.

SEC filings also suggest that many listed companies that relied on Borgers would delay filing their results. The SEC said earlier this month it would allow a limited extension of the deadline for affected companies.

Biotechnology group Next-ChemX said in a May 6 filing that it was in the process of hiring another auditor, along with many other companies that are in the same situation, adding that there were there is a good chance that he will delay submitting his file. Financial state.

American Rebel, which makes safes for storing firearms, was a former customer of Borgers. Its president, Doug Grau, said the listeners' meltdown came out of nowhere.

He added: We were a day or two away from filing… looking back, one might say how did you not see this coming? But we didn't do it. This puts a company like ours in a very difficult position.

Telecommunications group FullNet Communications, mining company Atlas Lithium and entertainment group Lingerie Fighting Championships were among more than 50 companies to officially fire Borgers this week. Among them, 14 have already found a replacement.

Trumps TMTG has chosen Semple, Marchal & Cooper as its new auditor.

Gold Rock Holdings, Eva Live and Bioforce Nanoscience wrote separately Tuesday that they had hired Michael Gillespie & Associates. The closure of Borgers earlier this month was obviously a big event in this area, so a lot of people have been talking about it, Gillespie told the Financial Times.

Without admitting or denying the SEC's findings, Borgers and its founder Ben Borgers were fined and barred from practicing before the regulator as an accountant. Companies' deliberate and systemic failure to comply with professional standards affected more than 1,500 company filings between January 2021 and June 2023, the SEC said. At least 16 companies dropped Borgers earlier this year.

It is better for many companies to have to deal with the inconvenience of finding a new auditor than to [Borgers] go unpunished, said a person with knowledge of the company's case.

Sources 1/ https://Google.com/ 2/ https://www.ft.com/content/59236aa8-8eac-4b2f-9d3d-30ee361afbd3 The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos