AP – The Securities and Exchange Commission (SEC) yesterday charged an auditing firm hired by Trump Media and Technology Group just 37 days ago with “massive fraud” – though not for any work it performed for former president Donald Trump’s media company.
The SEC charged the accounting firm BF Borgers and its owner, Benjamin F Borgers, with “deliberate and systematic failures” in more than 1,500 audits. The charges include failing to abide by accounting rules, fabricating documentation to cover up its shortcomings, and falsely stating in audit reports that its work met audit standards.
To settle the SEC charges, BF Borgers agreed to pay a USD12 million fine while its owner agreed to pay a fine of USD2 million, according to the SEC.
Benjamin Borgers did not immediately return a call seeking comment. BF Borgers and Benjamin Borgers also agreed to permanent suspensions, effective immediately, that will prevent them handling SEC-related matters as accountants.
Trump Media named BF Borgers as its auditor on March 28, according to the company’s most recent annual report filing.
The company disclosed at the time that BF Borgers had also handled its audits before the company went public by merging with a cash-rich shell company called Digital World Acquisition Corp The company had previously cycled through at least two other auditors one that resigned the account in July 2023 and another that was terminated by the board in March, just as it was re-hiring BF Borgers.
In a statement, Trump Media said it “looks forward to working with new auditing partners in accordance with today’s SEC order.”
