SAN FRANCISCO – The Securities and Exchange Commission (SEC) recently brought charges against auditing firm BF Borgers and its owner for significant fraud. Despite being hired by Trump Media and Technology Group only 37 days prior, the SEC’s allegations do not pertain to the firm’s work with former President Donald Trump’s media company.
The SEC accused BF Borgers and its owner, Benjamin F. Borgers, of widespread failures in over 1,500 audits, including violations of accounting regulations, falsification of documents to conceal deficiencies, and misleading claims in audit reports about meeting standards. As part of a settlement, BF Borgers agreed to a $12 million fine, while Benjamin F. Borgers agreed to a $2 million fine.
In March, Trump Media appointed Borgers as its auditor, as indicated in the company’s latest annual report filing. Prior to this, Borgers had conducted audits for the company before its merger with Digital World Acquisition Corp, a cash-rich shell company.
Following the SEC’s findings, both BF Borgers and Benjamin Borgers accepted permanent suspensions, barring them from handling SEC-related matters as accountants moving forward. Trump Media expressed readiness to collaborate with new auditing partners in compliance with the SEC’s directive.
The SEC discovered that BF Borgers engaged in deceptive practices, such as duplicating audit documentation from previous years, altering dates, and passing it off as current records. This fabricated documentation included references to meetings with clients that never took place and falsely indicated approval from Benjamin Borgers and another reviewer.
Gurbir Grewal, director of the SEC’s enforcement division, condemned Ben Borgers and BF Borgers for what he labeled as one of the most significant breakdowns by financial market gatekeepers. Grewal noted that the SEC’s actions effectively shut down Borgers and their fraudulent audit operations.