SAN FRANCISCO — The Securities and Exchange Commission charged an auditing firm hired by Trump Media and Technology Group only 37 days ago with “massive fraud” on Friday, but not for any work done for former President Donald Trump’s media company.
The SEC accused the accounting firm BF Borgers and its owner, Benjamin F. Borgers, of “deliberate and systematic failures” in over 1,500 audits.
Trump Media’s Newly Hired Auditing Firm Was Just Busted By The SEC For ‘Massive Fraud’
The charges include failing to follow accounting regulations, falsifying documents to conceal flaws, and falsely claiming in audit reports that its work fulfilled audit criteria.
To settle SEC accusations, BF Borgers agreed to pay a $12 million fine, while its owner consented to pay a $2 million fine, according to the SEC. Benjamin Borgers did not immediately return a phone for comment.
BF Borgers and Benjamin Borgers both agreed to permanent sanctions, which will take effect immediately and prevent them from handling SEC-related matters as accountants.
According to the company’s most recent annual report filing, Trump Media appointed BF Borgers as its auditor on March 28. The business acknowledged that BF Borgers had similarly addressed its audits before its public offering by combining with a cash-rich shell company called Digital World Acquisition Corp.
The company had already hired at least two other auditors, one who resigned from the account in July 2023 and another who was fired by the board in March, just as it was rehiring BF Borgers.
Trump Media “looks forward to working with new auditing partners in accordance with today’s SEC order.”
Trump Media’s Newly Hired Auditing Firm Was Just Busted By The SEC For ‘Massive Fraud’
The SEC discovered that BF Borgers’ shortcuts included:
- Copying audit documents from the prior year.
- Changing the pertinent dates.
- Passing it off as current documentation.
In addition to inaccurately recording work that was never completed, the fake documentation detailed planning meetings with clients that never took place and “falsely represented” that both Benjamin Borgers and another reviewer had authorized the audit work.
Trump Media’s Newly Hired Auditing Firm Was Just Busted By The SEC For ‘Massive Fraud’
“Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets,” stated Gurbir Grewal, the SEC’s enforcement director. “Thanks to the painstaking work of the SEC staff, Borgers and his sham audit mill have been permanently shut down.”
SOURCE – (AP)
