The Securities and Exchange Commission (SEC) 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 ago, the charges do not relate to any work done for the former President’s media company. The SEC found that BF Borgers had violated accounting rules, fabricated documentation, and falsely claimed their work met audit standards.
To settle the charges, BF Borgers agreed to pay a $12 million fine, while Benjamin Borgers will pay a $2 million fine. Both parties are also facing permanent suspensions from handling SEC-related matters as accountants. Trump Media had named BF Borgers as its auditor on March 28, as disclosed in their most recent annual report filing. This came after the company had cycled through at least two other auditors, with BF Borgers having previously handled their audits before the company went public.
In response to the SEC’s findings, Trump Media stated that they look forward to working with new auditing partners in compliance with the SEC order. Director of the SEC’s enforcement division, Gurbir Grewal, condemned BF Borgers for their unethical practices and emphasized the importance of accountability in financial markets.
Vocabulary List:
- Fraud (noun): Wrongful or criminal deception intended to result in financial or personal gain.
- Auditing (noun): The official examination of financial accounts.
- Violated (verb): Broke or failed to comply with a rule or agreement.
- Falsely (adverb): In a way that is not true or correct; inaccurately.
- Suspensions (noun): A temporary stoppage of an activity or process.
- Compliance (noun): The action or fact of complying with a wish or command.
