SEC Accuses Trump Media Auditor of ‘Sham Audit Mill’ and Extensive Fraud
The Securities and Exchange Commission (SEC) has charged BF Borgers, the independent accounting firm for Trump Media & Technology Group, with conducting a “sham audit mill” and committing extensive fraud that affected more than 1,500 SEC filings between January 2021 and June 2023.
According to the SEC, the Lakewood, Colorado-based auditor lied to clients about the compliance of its work with PCAOB standards and “fabricated” audit documents. The firm allegedly made false claims in audit reports cited in the SEC filings of over 500 public companies that the firm’s audits adhered to those requirements.
Without acknowledging or disputing the accusations, BF Borgers CPA and its owner, Benjamin Borgers, have agreed to a permanent ban from practicing accounting before the SEC. They have also agreed to pay a total of $14 million in civil penalties.
Gurbir Grewal, Director of SEC Enforcement Division, stated in a press release: “Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets.”
The SEC has informed corporations that employed BF Borgers to locate new accounting firms. Following the SEC ruling, Trump Media’s stock price fell by 9 percent shortly after trading started on Friday. The company has indicated its plans to comply with the SEC order and appoint new auditing partners.
Donald Trump, the primary shareholder of Trump Media, has raised concerns about the financial information submitted in reports released by firms audited by Borgers. The SEC’s move highlights the importance of financial regulation and the consequences of accounting fraud.
