TRUTH SOCIAL #PRAVDASOCIAL & Trump Media & Technology Group (TMTG) NASDAQ:DJT - SPAC Digital World Acquisition Corp

[Suranis]

Hmmm, Speculation 129,452: They are spending millions to prop up the stock and failing, so they think it has to be someone else that is countering their efforts.

As for Nunes, apparently his family basically runs the area his farm is in like Barons, so he might actually think he is super powerful.

[tek]

Wait, remind me again of all the successful investigations Nunes headed in congress?

[Suranis]

He successfully lead an investigation of his ass through the medium of his elbows. After several months of intense action, he successfully determined the potential probability of substantial verification of the evidence for the existence of evidence of the existence of his Backside.

[MN-Skeptic]

Good lord, they're crazy...

20240429 DJT.jpg (41.55 KiB) Viewed 2819 times

[Volkonski]

[p0rtia]

Okay, financial folk, please put aside your Ben Meiselas dislike and take a look at the following video, wherein Ben gives his thoughts on what the hell is going on with DJT stocks. He sees shenanigans at work, centering on a letter that is being sent to retail shareholders.

None of the annoying repetition of video clips.



Trump LATEST MOVE with Stock Raises MAJOR RED FLAGS

Thanks!

[Flatpoint High]

could he be the reincarnation of this guy:
https://www.smithsonianmag.com/history/ ... -29861908/

Secret Service agents finally had one of the world’s greatest imposters, wanted throughout Europe as well as in the United States. He’d amassed a fortune in schemes that were so grand and outlandish, few thought any of his victims could ever be so gullible. He’d sold the Eiffel Tower to a French scrap-metal dealer. He’d sold a “money box” to countless greedy victims who believed that Lustig’s contraption was capable of printing perfectly replicated $100 bills. (Police noted that some “smart” New York gamblers had paid $46,000 for one.) He had even duped some of the wealthiest and most dangerous mobsters—men like Al Capone, who never knew he’d been swindled.

Now the authorities were eager to question him about all of these activities, plus his possible role in several recent murders in New York and the shooting of Jack “Legs” Diamond, who was staying in a hotel room down the hall from Lustig’s on the night he was attacked.

[MN-Skeptic]

This is the auditing firm used by DJT Media -

Trump Media’s accounting firm charged with ‘massive fraud’

BF Borgers, Trump Media & Technology Group’s independent accounting firm, was charged by the Securities and Exchange Commission on Friday with widespread fraud and accused of operating a “sham audit mill.”

The SEC made no allegation of wrongdoing against Truth Social owner Trump Media (DJT), which is not mentioned in the charges from the regulator.

The SEC accused BF Borgers of “deliberate and systemic failures,” including “fabricating” audit documentation and falsely representing to clients its work would comply with accounting standards.

The agency described this as “massive” fraud taking place between January 2021 and June 2023 that impacted more than 1,500 SEC filings and more than 500 public companies.

The SEC imposed a severe penalty against BF Borgers, permanently suspending the firm from practicing as accountants before the agency effective immediately. The firm and its owner, Benjamin Borgers, also agreed to pay $14 million collectively in fines.

“Borgers and his sham audit mill have been permanently shut down,” Gurbir Grewal, director of the SEC’s enforcement division, said in a press release.

Public companies that have hired BF Borgers will need to find new accounting firms, the SEC alerted companies in a separate statement on Friday.

Trump Media announced plans to do just that.

“Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order,” Trump Media spokesperson Shannon Devine told CNN in a statement.

According to filings, Borgers served as Trump Media’s independent registered accounting firm before the social media company went public in March. Later in March, the audit committee of Trump Media approved the hiring of Borgers as the public company’s accounting firm.

Although Trump Media may be the highest profile client of BF Borgers, the firm had 350 clients during this time period subject to SEC rules, according to the agency.

The SEC review only focused on public companies, meaning BF Borgers’ work for Trump Media when it was private was not included.

(Most of the article quoted above, the rest at the link above.)

[Rolodex]

Of court trump picked an audit mill type company. LOL

So they're suspended from working with anything in front of the SEC...but who on earth will hire them for anything at all now?

[Suranis]

The people will probably set up another audit mill company and be back in business in a year or Two. The SEC does not have the resources to track these people. And there are always people looking for someone to rubber stamp their books for this quarter.

[keith]

Queue Turnip blaming his accounting woes on these guys in 3...2...

[MN-Skeptic]

not DWAC staff or management

Three Charged With Illegally Trading Ahead of Trump Media Merger
The arrests came after an investigation into trading in the securities of Digital World Acquisition Group, which merged with former President Donald

By Matthew Goldstein
June 29, 2023 Updated 11:19 a.m. ET

Federal authorities charged three men on Thursday with taking part in a scheme to make $22 million in illegal profits by trading ahead of the proposed merger of former President Donald J. Trump’s social media company with a cash-rich public shell company in fall 2021.

The arrests came after a lengthy investigation by federal prosecutors in Manhattan into trading in the securities of Digital World Acquisition Group, a so-called special purpose acquisition company. The inquiries had focused on a small Miami-based venture capital firm, Rocket One Capital, led by Michael Shvartsman.

Federal prosecutors in Manhattan said they charged Mr. Shvartsman and his brother Gerald, who owns an outdoor furnishing store in Miami, in connection with the alleged improper trading. Also charged was Bruce Garelick, a former hedge fund manager who had worked at Rocket One. He also was a board member of Digital World before resigning last summer.

None of the individuals arrested are said to have any connection to Mr. Trump or anyone associated with Trump Media & Technology Company, the parent company of his right-leaning social media platform, Truth Social, said one person briefed on the matter, who spoke on condition of anonymity because he was not authorized to speak publicly. Trump Media is supposed to merge with Digital World.




https://www.nytimes.com/2023/06/29/busi ... erger.html

All guilty -

Two Insider Traders on Trump Media SPAC Pled now Garelick Found Guilty After Trial

[RTH10260]

Trump Media says it will delay quarterly filing due to auditor change

PUBLISHED WED, MAY 15 20249:10 PM EDT
Reuters

Trump Media & Technology Group filed a notice to the U.S. Securities and Exchange Commission on Wednesday that it would delay its quarterly filing, just days after the regulator charged its former auditor with fraud.

Former U.S. President Donald Trump’s media company said it was unable to complete the review of its financial statement for the quarter ended March 31 due to the timing of its appointment of Semple, Marchal & Cooper as the new auditor.

The company dismissed previous auditor BF Borgers, after the SEC charged the accounting firm with “massive fraud” earlier this month.

Borgers, the auditor of the Truth Social parent since 2022, agreed to a $12 million civil penalty and to discontinue practicing as accountants on SEC filings, the agency had said.

An army of Trump supporters and speculators snapped up the company’s shares, sending them soaring as much as 59% in their Nasdaq debut on March 26. The stock has since then cut its gain to about 5%, giving it a market value of about $7 billion.

Truth Social’s revenue was $4.13 million last year, up from $1.47 million in 2022.



https://www.cnbc.com/2024/05/16/trump-m ... hange.html

[johnpcapitalist]

Trump Media says it will delay quarterly filing due to auditor change

Trump Media & Technology Group filed a notice to the U.S. Securities and Exchange Commission on Wednesday that it would delay its quarterly filing, just days after the regulator charged its former auditor with fraud.

Normally, when a company files a notice like this, the stock plummets to near-zero, as rational investors worry about FBI raids, executive indictments, etc. But since this is a cult stock, it'll probably actually go up because someone will say this means that the company is now even more financially sound than ever, with a high-class new auditor.

Of course, when the new firm gets in there, they may discover the financials are enough of a shit show that they don't want to be associated with it, even if they are somewhat sketchy overall. If I were running a sketchy accounting firm, the last thing I would want is a high-visibility client that has some potential to get the SEC interested in potential fraud it's committing. I would only do business with scummy clients that understand the value of flying under the radar.

[northland10]

Of course, when the new firm gets in there, they may discover the financials are enough of a shit show that they don't want to be associated with it, even if they are somewhat sketchy overall.

Scummy accounting firms are probably the only ones he can get because they will tell him what he wants to hear. Real accounting practices are not something Trump wants.

[bob]

Grains of salt, etc.

[raison de arizona]

That's...impressive. I suppose.

[Rolodex]

I mean...how do you lose $328 million in 3 months?

Do they sell ads?

[bill_g]

The GQP clearly have not paid attention to lemmings and buffalo as they approach a cliff.

[p0rtia]

I mean...how do you lose $328 million in 3 months?

Do they sell ads?

I'm going with...salaries.....

[MN-Skeptic]

You can find the quarterly report filed with the SEC - the 10-Q - at this site - https://ir.tmtgcorp.com/financials/sec-filings/. It looks like the big hit on the income statement was $225,926K as "Change in fair value of derivative liabilities."

[neeneko]

I mean...how do you lose $328 million in 3 months?

AWS? I doubt they have much of their own infrastructure, so they are likely depending heavily on cloud providers, which have gotten expensive.

[bbflatt]

That is a funky looking 10-Q. As MN-Skeptic point out, the big item creating the loss is the “Change in fair value of derivative liabilities” on the income statement. But the balance sheet shows that the Derivative liability balance went from $18,403k (long and short term combined) to $0, indicating a decrease in the liability and an improvement in financial condition, so where did the loss come from? It appears to be explained in Note 9 – Convertible Promissory Notes and Warrants, which to me reads like one of those disclosures intended not to actually disclose anything, but the last couple of paragraphs read as follows:

Conversion into Paid in Capital

At the closing of the merger, certain Digital World and TMTG convertible notes were converted into common stock of the Company. The carrying value of the Digital World notes converted was $8,228.6 and the carrying value of the TMTG notes converted was $300,426.0, including the derivative liability.

The Company determined the automatic discounted share-settlement feature upon certain events (e.g., SPAC, IPO, change in control, etc.) is an embedded derivative requiring bifurcation accounting as (1) the feature is not clearly and closely related to the debt host and (2) the feature meets the definition of a derivative under ASC 815 (Derivative and Hedging). Subsequent changes to the fair value of the embedded derivative flows through the Statement of Operations. The Debt (net of initial debt discount and any related debt issuance costs recorded) is accreted using the effective interest rate method under ASC 835 (Interest) until maturity. The Convertible Promissory Notes (debt host) are not subject to Subtopic 480-10.

So it looks like they took all the IOUs they issues to “certain institutional investors” exchanged them for common stock at the IPO which was valued at a lot more than the face value of the IOUs, resulting in a big loss. I wonder who those “certain institutional investors” were?

Other things to note, year-on-year revenue is down about 30% while Cost of revenue is up over 100%, so they’re spending more to make less, even before their out of control operating expenses. Overall this looks like a fiscal disaster area to me, but we already knew that.

[tek]

so they’re spending more to make less

How very Trumpian.

[p0rtia]

Watching DJT this morning -- holding steady around 48. Which I cannot believe, given yesterday's news on the first quarter numbers.

I know the stock market is a strange alternate universe, but this seems like it must be an alternate alternate universe. Similar to the one in which the worse fuckhead behaves, the more his flying monkeys love him.