Trump Media’s recently hired auditing firm accused of ‘massive fraud’ by SEC | Global News

The Securities and Exchange Commission (SEC) has charged auditing firm BF Borgers and its owner, Benjamin F. Borgers, with massive fraud, despite their recent hiring by Trump Media and Technology Group. The SEC found deliberate and systematic failures in over 1,500 audits conducted by the firm, including violations of accounting rules, fabrication of documentation, and false statements in audit reports.

BF Borgers has agreed to pay a $12 million fine, while Benjamin Borgers will pay a $2 million fine. Both parties have also agreed to permanent suspensions, preventing them from handling SEC-related matters as accountants. Trump Media had named Borgers as its auditor on March 28, but the company now looks forward to working with new auditing partners in compliance with the SEC’s order.

The SEC discovered that BF Borgers had taken shortcuts such as copying audit documentation from previous years, altering dates, and falsely representing approval from reviewers. Gurbir Grewal, director of the SEC’s enforcement division, described Borgers and his firm as responsible for one of the largest failures by financial market gatekeepers. He commended the SEC staff for shutting down Borgers’ “sham audit mill.”

This development raises questions about the due diligence conducted by Trump Media in selecting its auditing partners. The company had previously cycled through multiple auditors, with Borgers being the latest in a series of changes. The SEC’s actions highlight the importance of thorough vetting and oversight in financial auditing to maintain market integrity and investor confidence.