The Securities and Exchange Commission (SEC) has accused an auditing firm, BF Borgers, and its owner, Benjamin F. Borgers, of engaging in "massive fraud" in over 1,500 audits.
Despite being hired by Trump Media and Technology Group just 37 days ago, the charges do not pertain to any work performed for the company. The SEC alleges that BF Borgers and Benjamin Borgers failed to comply with accounting rules, fabricated documentation to hide their failures, and falsely claimed that their work met audit standards.
To settle the charges, BF Borgers agreed to pay a $12 million fine, while Benjamin Borgers agreed to pay a $2 million fine. Both parties also agreed to permanent suspensions, preventing them from handling SEC-related matters as accountants.
Trump Media had named BF Borgers as its auditor on March 28, as disclosed in its most recent annual report filing.
This appointment came after the company had cycled through at least two other auditors, with one resigning in July 2023 and another being terminated by the board in March, coinciding with BF Borgers' re-hiring.
In response to the SEC's findings, Trump Media stated that it "looks forward to working with new auditing partners in accordance with today’s SEC order."
The SEC discovered that BF Borgers' misconduct included copying audit documentation from previous years, altering dates, and falsely representing approval from auditors. Gurbir Grewal, director of the SEC’s enforcement division, described Borgers' actions as "one of the largest wholesale failures by gatekeepers in our financial markets," and commended the SEC staff for shutting down Borgers' "sham audit mill."