CNN
BF Borgers, Trump Media & Technology Group’s independent accounting firm, was charged by the Securities and Exchange Commission on Friday with widespread fraud and accused of operating a “sham audit mill.”
The SEC made no allegation of wrongdoing against Truth Social owner Trump Media (DJT), which is not mentioned in the charges from the regulator.
The SEC accused BF Borgers of “deliberate and systemic failures,” including “fabricating” audit documentation and falsely representing to clients its work would comply with accounting standards.
The agency described this as “massive” fraud taking place between January 2021 and June 2023 that impacted more than 1,500 SEC filings and more than 500 public companies.
The SEC imposed a severe penalty against BF Borgers, permanently suspending the firm from practicing as accountants before the agency effective immediately. The firm and its owner, Benjamin Borgers, also agreed to pay $14 million collectively in fines.
“Borgers and his sham audit mill have been permanently shut down,” Gurbir Grewal, director of the SEC’s enforcement division, said in a press release.
Public companies that have hired BF Borgers will need to find new accounting firms, the SEC alerted companies in a separate statement on Friday.
Trump Media announced plans to do just that.
