Catherine Rusoff
Trump Media & Technology Group’s independent accounting firm BF Borgers faces “massive fraud” charges from the Securities and Exchange Commission, which on Friday claimed the auditor ran a “mock audit factory” that put investors at risk.
The SEC said Borgers was shut down, noting that the company agreed to a permanent suspension from appearing and practicing as an accountant before the agency. The suspension takes effect immediately. Additionally, BF Borgers has agreed to pay a $12 million civil penalty, while owner Benjamin Borgers will pay a $2 million civil penalty.
Neither the SEC’s statement nor its complaint mentioned Trump Media & Technology Group. Borgers did not respond to a request for comment.
In an email, Trump Media said it “looks forward to working with new audit partners in accordance with today’s SEC order.”
The SEC accused Borgers of “deliberate and systemic failures” to comply with accounting standards in 1,500 SEC filings from January 2021 to June 2023, during which time Borgers had about 350 clients. Trump Media’s March debut as a public company came after that period, but the social media company said in its 2023 Annual Report who had worked with Borgers before going public on the Nasdaq stock exchange.
In its report, the company added that on March 28 an audit committee approved Borgers to audit its 2023 and 2022 financial statements.
Among the issues cited by the SEC is the fact that Borgers failed to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits, even though the regulatory agency requires that public companies’ financial statements meet those standards. Borgers also allegedly falsely told customers that its work would meet these standards.
The agency claims that at least 75 percent of the records incorporating Borgers’ audits and reviews did not meet PCAOB standards.
“Ben Borgers and his auditing firm, BF Borgers, were responsible for one of the largest wholesale failures committed by gatekeepers in our financial markets,” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement, in the statement.
He added: “As a result of their fraudulent conduct, they have not only put investors and markets at risk by causing public companies to incorporate non-compliant audits and reviews into more than 1,500 filings with the Commission, but they have also undermined confidence in our markets .”
