The Securities and Exchange Commission has charged auditing firm BF Borgers and its owner, Benjamin F. Borgers, with “massive fraud” for deliberate failures in over 1,500 audits. Despite being hired by Trump Media and Technology Group just 37 days prior, the charges do not pertain to their work with the former President Donald Trump’s media company. The firm allegedly failed to comply with accounting rules, fabricated documentation to cover up deficiencies, and falsely claimed their audits met standards. To settle the charges, BF Borgers agreed to pay a $12 million fine, while Benjamin Borgers agreed to pay $2 million. Both have been permanently suspended from handling SEC-related matters.
Trump Media had appointed BF Borgers as its auditor on March 28, as disclosed in its recent annual report filing. The company had previously changed auditors twice, with one resigning in July 2023 and another being terminated in March. Trump Media stated that it looks forward to working with new auditing partners following the SEC’s order.
The SEC found that BF Borgers engaged in shortcuts such as copying audit documentation from previous years, altering dates, and falsely representing approvals. Gurbir Grewal, director of the SEC’s enforcement division, highlighted the severity of the situation, referring to it as one of the largest failures in financial markets. Thanks to the SEC’s intervention, Borgers and his firm have been permanently shut down.
Vocabulary List:
- Fraud (noun): Deception with the intent to gain an unfair advantage or benefit.
- Compliance (noun): Act of following ruleslawsor regulations.
- Fabricated (adjective): Made or produced to deceive or mislead.
- Deficiencies (noun): Lack of something that is necessary or required.
- Settle (verb): Resolve or reach an agreement about an argumentproblemor dispute.
- Terminated (verb): Ended abruptly or dismissed from employment or job.
