Trump Media Technology Group’s independent accounting firm, BF Borgers, has been charged by the Securities and Exchange Commission with extensive fraud and accused of operating a “sham audit mill.”
The SEC, which issued the charges on Friday, is accusing the firm of “deliberate and systemic failures,” including “fabricating” audit documentation and falsely representing its work to clients.
The agency has made no allegations against Truth Social owner Trump Media (DJT), which is chaired and majority owned by former President Donald Trump.
However, the SEC review only focused on public companies, meaning that BF Borgers’ work for Trump Media before it went public was not investigated.
The SEC has imposed a full penalty against BF Borgers, permanently suspending the firm from practicing as accountants before the agency, effective immediately.
The firm, along with its owner, Benjamin Borgers, have agreed to pay $14 million collectively in fines.
“Borger and his sham audit mill have been permanently shut down,” Gurbir Grewal, director of the SEC’s enforcement division, said in a press release.
According to the SEC, this “massive” fraud occurred between January 2021 and June 2023, impacting more than 1,500 SEC filings and upwards of 500 public companies.
While Trump Media may have been the highest profile client of BF Borgers, the firm had 350 clients during this time period subject to SEC rules, the agency reported.
Additionally, the agency found that out of the 369 Borger clients whose public filings incorporated the firm’s audits and reviews, at least 75% did not comply with accounting standards.
Public companies that have hired BF Borgers will now need to find new accounting firms, the SEC alerted businesses in an additional statement on Friday.
BF Borgers served as Trump Media’s independent registered accounting firm before the social media company went public in March, after which, the audit committee of Trump Media approved the hiring of Borgers as the public company’s accounting firm.
The media corporation is now severing ties with the business.
“Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order,” Shannon Devine, a Trump Media spokesperson told CNN in a statement.
This is far from Borger’s first offense, as the firm has faced disciplinary action for improper or insufficient performance in the past.
The accounting firm has not yet publicly commented on its fraud charges and suspension.
