SEC Imposes Harsh Penalty on BF Borgers for Accounting Fraud
The Securities and Exchange Commission (SEC) charged Trump Media & Technology Group’s independent accounting firm, BF Borgers, with widespread fraud, leading to a severe penalty.
Accusations Against BF Borgers
- Deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards
- Falsely representing compliance with PCAOB standards to clients
- Fabricating audit documentation to falsely show compliance with PCAOB standards
- Falsely stating in audit reports that their audits complied with PCAOB standards
The SEC accused BF Borgers of these violations in audits and reviews included in over 1,500 SEC filings from January 2021 through June 2023.
The SEC imposed a penalty on BF Borgers, permanently barring the firm from operating as accountants before the agency, effective immediately. Additionally, the company and its owner agreed to pay a combined $14 million in fines.
“Borgers and his sham audit mill have been permanently shut down,” said Gurbir Grewal, director of the SEC’s enforcement division.
Implications for Companies and Trump Media
Companies that have employed BF Borgers will now need to seek new accounting firms, as per the SEC’s directive. Trump Media has also initiated the search for a new accounting firm.
Following these developments, Trump Media’s stock price experienced a 9 percent decline as trading began on Friday. Borgers had previously served as Trump Media’s independent registered accounting firm before the company’s public listing in March.
