Fogbow

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.

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.

RTH10260 wrote: ↑Thu Jun 29, 2023 1:19 pm 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

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

RTH10260 wrote: ↑Sun May 19, 2024 6:57 pm

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.

johnpcapitalist wrote: ↑Mon May 20, 2024 9:45 am 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.

Rolodex wrote: ↑Mon May 20, 2024 8:23 pm I mean...how do you lose $328 million in 3 months?

Do they sell ads?

Rolodex wrote: ↑Mon May 20, 2024 8:23 pm I mean...how do you lose $328 million in 3 months?

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 they’re spending more to make less