The Securities and Exchange Commission has charged BF Borgers, the accounting firm responsible for conducting financial audits for Trump Media & Technology Group, with fraud. The firm is accused of engaging in a large-scale operation to deceive and misrepresent their auditing practices.
The SEC stated on Friday that Borgers’ audits on 369 companies between January 2021 and June 2023 were not compliant with federal regulations in at least 75% of cases. The firm is accused of failing to adequately maintain documentation of their work and is also alleged to have fabricated fraudulent documentation on multiple occasions.
Gurbir Grewal, director of the SEC’s enforcement division, expressed his appreciation for the SEC staff’s diligent efforts in permanently shutting down Borgers and his fraudulent audit mill.
In a settlement with federal regulators, owner Benjamin Borgers and his firm have agreed to pay $14 million and will permanently suspend their accounting practice. The settlement does not require an admission of guilt. As a result, all of Borgers’ clients will need to find new auditors, as stated by the SEC.
The filing does not mention Trump Media, but according to CNN, the company plans to search for a new accounting partner as directed by the SEC. BF Borgers has been working with Trump Media even before it went public, and they were responsible for auditing the April prospectus to issue additional shares.
The SEC’s investigation did not review the past filings of Trump Media for fraudulent accounting practices because it was not a public company at that time.
Trump Media, the owner of Truth Social, has emerged as one of the firm’s most valued clients with a staggering valuation of $6.6 billion, despite generating minimal revenue. The SEC has clarified that Trump Media, along with other clients that Borgers worked with, may not be required to revise their filings. However, it is advisable to amend the forms to rectify any reporting deficiencies.
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