Monday, May 20, 2024

Trump Media’s Auditor BF Borgers Slapped with SEC Charges Over ‘Massive Fraud’

BF Borgers, the independent accounting firm for Trump Media & Technology Group, faces severe SEC allegations of widespread fraud and operating what regulators termed a “sham audit mill.”

The Securities and Exchange Commission (SEC) unleashed allegations of pervasive fraud against BF Borgers, the accounting firm enlisted by Trump Media & Technology Group. The SEC’s probe unveiled damning accusations of systematic failures within BF Borgers, encompassing the fabrication of audit documentation and the misleading representation of adherence to accounting standards. This purported malfeasance, described as “massive,” unfolded between January 2021 and June 2023, affecting over 1,500 SEC filings and more than 500 public companies.

The SEC’s punitive measures against BF Borgers were swift and stern, resulting in the permanent suspension of the firm’s accounting practice before the regulatory body. Additionally, the firm’s owner, Benjamin Borgers, agreed to a collective fine of $14 million. Gurbir Grewal, director of the SEC’s enforcement division, asserted in a press release that “Borgers and his sham audit mill have been permanently shut down.”

In light of these developments, public companies previously employing BF Borgers are urged to seek alternative accounting services. Trump Media & Technology Group swiftly responded, expressing its readiness to engage new auditing partners in alignment with the SEC’s directives. Trump Media spokesperson Shannon Devine conveyed this sentiment to CNN in a statement.

Despite Trump Media’s prominence, particularly as the high-profile client of BF Borgers, the firm’s roster comprised 350 clients under SEC jurisdiction during the period under scrutiny. Notably, the SEC’s review exclusively scrutinized BF Borgers’ interactions with public companies, thus excluding its engagements with Trump Media during its private tenure.

This recent debacle adds to a series of regulatory entanglements for BF Borgers, dating back to 2019. Instances of disciplinary actions in Colorado and termination from professional review programs underscore the recurrent issues plaguing the firm’s operations.

Trump Media’s association with BF Borgers dates back to late March, with the firm assuming responsibilities as the social media company’s public accountant.

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