Trump Media’s Auditor in Hot Water for “Massive Fraud”

It looks like Trump Media’s auditing firm, BF Borgers, just got slammed by the Securities and Exchange Commission (SEC).

The SEC dropped the bomb on Friday, accusing BF Borgers and its owner, Benjamin F. Borgers, of committing “massive fraud” with deliberate and systemic failures in over 1,500 filings.

Looks like they were being loose with audit standards.

And while the Democrats might think this is a win for them against Trump, there’s no accusations being made against him by the SEC in this matter.

BF Borgers, the Audit Firm for Trump Media, Charged with Massive Fraud Affecting More Than 1,500 SEC Filings

Suspended as Practicing Accountants Before the SEC

To Pay $14 Million in Civil Penaltieshttps://t.co/msuRnXrtn7$DJT pic.twitter.com/no98pEG7iH

— GuruLeaks (@Guruleaks1) May 3, 2024

NBC News reports:

An auditing firm that counted Trump Media among its clients has been barred from practicing accounting for committing “massive fraud,” the Securities and Exchange Commission said on Friday.

BF Borgers and its owner, Benjamin F. Borgers, were charged with “deliberate and systemic failures” to comply with audit standards in more than 1,500 filings, the SEC said on Friday. The firm also falsely claimed to clients that it was adhering to those standards and falsified documents to make it appear so, according to the agency.

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To settle the charges with the SEC, the company has agreed to pay a $12 million civil penalty, and Borgers will personally pay $2 million. Both are also permanently suspended from practicing as accountants. Neither responded to CNBC’s request for comment.

Gurbir S. Grewal, director of the SEC’s Division of Enforcement, slammed Borgers and “his sham audit mill” in a statement.

“Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets,” Grewal said. “As a result of their fraudulent conduct, they not only put investors and markets at risk by causing public companies to incorporate noncompliant audits and reviews into more than 1,500 filings with the Commission, but also undermined trust and confidence in our markets.”

BF Borgers’ sudden demise “will force hundreds of companies … to hunt for new auditors, scour old audits for potential problems, and scramble to meet public company regulatory deadlines,” Bloomberg reports.

Trump Media & Technology Group $DJT replaced its auditor after the company – BF Borgers – was charged with "massive fraud" by the SEC. Chair @GaryGensler weighs in pic.twitter.com/7GTQlNBXq9

— Squawk Box (@SquawkCNBC) May 7, 2024