SEC discovers ‘massive fraud’ at Trump Media’s recently hired auditing firm

The Securities and Exchange Commission has taken action against auditing firm BF Borgers and its owner, Benjamin F. Borgers, for what they describe as “massive fraud” in over 1,500 audits. Despite being recently hired by Trump Media and Technology Group, the charges do not relate to any work done for the former President Donald Trump’s media company. The SEC alleges that BF Borgers failed to follow accounting rules, falsified documentation to cover up their failures, and inaccurately claimed that their audits met standards.

In a settlement with the SEC, BF Borgers agreed to pay a fine of $12 million, while Benjamin Borgers will pay $2 million. Both parties have also agreed to permanent suspensions, prohibiting them from handling SEC-related matters as accountants going forward. Trump Media had only appointed BF Borgers as their auditor in March, after cycling through two previous auditors. The company has expressed its intention to work with new auditing partners going forward, in compliance with the SEC order.

The SEC investigation found that BF Borgers engaged in unethical practices such as copying previous year’s audit documentation, altering dates, and falsely portraying approval from auditors. Gurbir Grewal, director of the SEC’s enforcement division, condemned the actions of Ben Borgers and his firm, calling it one of the “largest wholesale failures” in financial markets. The SEC’s efforts have resulted in the shutdown of Borgers’ fraudulent audit operation.