The Securities and Exchange Commission (SEC) has leveled severe accusations against BF Borgers, the independent accounting firm responsible for auditing Trump Media & Technology Group.
The charges include widespread fraud and operating what the SEC termed a “sham audit mill.”
While the allegations are serious, the SEC clarified that they do not implicate Truth Social owner Trump Media (DJT), which has not been mentioned in the charges.
According to the SEC, BF Borgers engaged in “deliberate and systemic failures,” which involved fabricating audit documentation and falsely assuring clients that their work adhered to accounting standards.
This purported fraud occurred between January 2021 and June 2023 and affected over 1,500 SEC filings and 500 public companies.
As a consequence of these findings, the SEC has taken drastic action, permanently suspending BF Borgers from practicing as accountants before the agency.
Additionally, the firm’s owner, Benjamin Borgers, has agreed to pay $14 million in fines.
Gurbir Grewal, director of the SEC’s enforcement division, emphasized the severity of the situation, stating, “Borgers and his sham audit mill have been permanently shut down.”
The repercussions extend beyond BF Borgers itself. Public companies that employed the firm’s services will now need to seek alternative accounting firms.
Trump Media, in response to the SEC’s actions, has expressed readiness to collaborate with new auditing partners. Trump Media spokesperson Shannon Devine told CNN, “Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order.”
Although Trump Media is one of BF Borgers’ notable clients, the firm served around 350 clients during the period under scrutiny, according to the SEC.
Notably, the SEC’s review only scrutinized BF Borgers’ work for public companies, excluding its services to Trump Media during its private phase.
This development comes amid Trump Media’s growing profile, with former President Donald Trump at its helm.
Despite achieving a substantial valuation on Wall Street, Truth Social, Trump Media’s flagship platform, faces challenges in user engagement.
Recent data indicates a significant drop in active US users compared to the previous year.
The recent allegations add to BF Borgers’ history of regulatory troubles. Since 2019, Colorado regulators have repeatedly taken disciplinary action against the firm and its founder.
Last year, BF Borgers was removed from the peer review program of the Association of International Certified Professional Accountants due to significant performance deficiencies.
Trump Media announced BF Borgers as its public accountant in late March, signaling a partnership that has now been marred by the SEC’s accusations.
