SEC Charges Trump Media Auditor with Fraud, Imposes Lifetime Ban

Confidence UbaniMay 3, 20241 Mins read411

The Securities and Exchange Commission (SEC) has levelled allegations of “massive fraud” against the auditing firm responsible for Trump Media, BF Borgers CPA, and its owner, Benjamin Borgers. The federal regulator announced that the fraud impacted over 1,500 SEC filings, leading to significant penalties and a lifetime ban for the accused parties.

According to the SEC, BF Borgers systematically failed to conduct audits and quarterly reviews by standards set by the Public Company Accounting Oversight Board (PCAOB).

The agency-branded BF Borgers as a “sham audit mill,” accusing the company and its owner of fabricating documents and misleading clients about compliance with PCAOB standards.

During the period covered by the complaint, BF Borgers served as the auditor for Trump Media, which recently merged with Digital World Acquisition Corp, leading to its public listing under the ticker DJT. Despite the scandal, Trump Media initially retained BF Borgers as its auditors for 2024, raising concerns about the accuracy of financial information provided to investors.

Gurbir Grewal, the director of the SEC’s enforcement division, condemned the fraudulent conduct. He emphasises its detrimental impact on investor trust and market integrity.

While BF Borgers has yet to respond to media requests for comment, Trump Media expressed its commitment to collaborating with new auditing partners in compliance with the SEC’s directives. As companies affected by the scandal seek new qualified public accountants, the SEC advises issuers to consider potential reporting deficiencies arising from their engagement with BF Borgers.

Read: Band A Electricity Hike Turning Our Hospitals to Morgues – Nigerian Doctor Laments