SEC charges Trump Media auditor with ‘massive fraud’ on hundreds of companies, imposes lifetime ban

SEC charges Trump Media auditor with ‘massive fraud’ on hundreds of companies, imposes lifetime ban

CNBC reports:

The auditing firm for Trump Media and the auditor’s owner were charged Friday with “massive fraud” by the Securities and Exchange Commission for accounting work that affected more than 1,500 SEC filings, the federal regulator announced.

The auditor, BF Borgers CPA, and its owner, Benjamin Borgers, have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, without admitting or denying the allegations, the SEC said.

The agency, calling BF Borgers a “sham audit mill,” said the company and its owner “deliberately systematically failed to conduct” audits and quarterly reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023 in accordance with Public Company Accounting Oversight Board standards.

The SEC said the Lakewood, Colorado-based auditor lied to clients by saying its work complied with PCAOB standards, fabricated audit documents to make it seem that the work did comply with those standards, and falsely claims in audit reports included in more than 500 public company SEC filings that the firm’s audits complied with such standards.

BF Borgers during the period covered by the SEC complaint acted as the auditor for Trump Media, which was then privately held and moving toward a planned merger with the publicly traded shell company Digital World Acquisition Corp.

Trump Media and DWAC finalized that merger in late March 2024, leading to Trump Media becoming publicly traded under the DJT ticker.

Three days after the company went public, Trump Media’s board approved keeping BF Borgers on as the company’s auditors for 2024. [Continue reading…]

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