May 07, 2024

SEC charges Trump Media auditor with ‘massive fraud’ on hundreds of companies, imposes lifetime ban

The auditing firm for Trump Media and its owner were hit with charges of "massive fraud" by the Securities and Exchange Commission (SEC) on Friday for their accounting practices, affecting over 1,500 SEC filings, the federal regulator revealed. BF Borgers CPA, the auditor, and its owner, Benjamin Borgers, have agreed to a permanent suspension from […] 
 May 07, 2024

SEC charges Trump Media auditor with ‘massive fraud’ on hundreds of companies, imposes lifetime ban

The auditing firm for Trump Media and its owner were hit with charges of "massive fraud" by the Securities and Exchange Commission (SEC) on Friday for their accounting practices, affecting over 1,500 SEC filings, the federal regulator revealed.

BF Borgers CPA, the auditor, and its owner, Benjamin Borgers, have agreed to a permanent suspension from practicing as accountants before the SEC and to pay a combined $14 million in civil penalties, without admitting or denying the allegations, according to the SEC.

Describing BF Borgers as a "sham audit mill," the SEC accused the company and its owner of systematically failing to conduct audits and quarterly reviews in compliance with Public Company Accounting Oversight Board standards from January 2021 through June 2023.

The SEC complaint covers the period when BF Borgers acted as the auditor for Trump Media, which was then privately held and moving towards a merger with Digital World Acquisition Corp.

Trump Media went public after finalizing the merger with DWAC in late March 2024, with BF Borgers retained as its auditors for 2024.

The SEC's enforcement division director, Gurbir Grewal, condemned BF Borgers and its owner for one of the largest failures by gatekeepers in financial markets, emphasizing the risk posed to investors and markets due to their fraudulent conduct.

The SEC's action has raised concerns about the accuracy of financial information in thousands of reports issued by the audited companies, including Trump Media. While reports filed by these companies do not necessarily require amendments solely due to the SEC's order, issuers are advised to evaluate any reporting deficiencies arising from the BF Borgers engagement.

Trump Media, which owns the Truth Social app, saw its share price decline by as much as 9% on Friday before partially recovering to a 1.7% decrease. The company stated its intention to work with new auditing partners following the SEC's order.

Find your merch

EYL MERCH

New Styles 2024

Shop EYL Merch and Assets over Liabilities Collections
Shop Now

RELATED NEWS

Shop EYL Merch

SHOP ALL >
Join The Earn Your Leisure Newsletter

Stay up-to-date with the latest news in Business, Investing and Real Estate.

*by clicking Subscribe you agree to our Terms of Service and Privacy Policy