SEC Charges Auditor of Trump Media with Massive Fraud

An auditor associated with Trump Media, owned by former president Donald Trump, has been charged by the US Securities and Exchange Commission (SEC) with engaging in fraudulent activities. BF Borgers, the auditor, and its owner, Benjamin Borgers, are accused of operating an illegitimate audit operation that impacted over 1,500 SEC filings. The fraudulent scheme involved the fabrication of audit documentation, misleading claims about conducting audit planning meetings, and using previous audits as if they were for the current period. Both BF Borgers and Benjamin Borgers have agreed to pay civil penalties and will be permanently suspended from practicing as accountants on SEC filings. Trump Media has expressed its intention to collaborate with new auditing partners.

SEC Charges Auditor of Trump Media with Massive Fraud

The US Securities and Exchange Commission (SEC) has leveled serious allegations of fraudulent activity against an auditor associated with Trump Media, the media company associated with former president Donald Trump. The auditor in question is BF Borgers, owned by Benjamin Borgers, who has been charged with engaging in a fraudulent scheme that impacted over 1,500 SEC filings. BF Borgers has also represented financial technology and cryptocurrency companies, according to SEC filings.

Trump Media’s Auditor Faces Serious Allegations

BF Borgers, the auditor for Trump Media, is now under review by the SEC. In the company’s most recent annual report filing, it was disclosed that BF Borgers was named as the auditor for Trump Media on March 28. The audits conducted by BF Borgers took place prior to the company’s public debut, which occurred through a merger with Digital World Acquisition Corp, a shell company with substantial funds. The SEC’s allegations against BF Borgers and its owner, Benjamin Borgers, have resulted in civil penalties. BF Borgers has agreed to pay a $12 million civil penalty, while Benjamin Borgers has agreed to pay a $2 million civil penalty. The two individuals have also been permanently suspended from practicing as accountants on SEC filings.

Charges Filed by the US Securities and Exchange Commission (SEC)

The charges against BF Borgers and Benjamin Borgers were filed by the US Securities and Exchange Commission (SEC). The SEC accuses BF Borgers of engaging in a fraudulent scheme that impacted over 1,500 SEC filings. This scheme has raised serious concerns about the integrity of the auditing process and the accuracy of financial information provided by companies.

BF Borgers and its Owner Benjamin Borgers Charged with Fraudulent Scheme

The SEC has charged BF Borgers and its owner Benjamin Borgers with operating a fraudulent scheme. The scheme impacted over 1,500 SEC filings and has raised questions about the accuracy and reliability of financial information provided by companies. BF Borgers, which represents Trump Media, has agreed to pay a $12 million civil penalty, while Benjamin Borgers has agreed to pay a $2 million civil penalty. Both individuals have also been permanently suspended from practicing as accountants on SEC filings.

Impacted SEC Filings and Companies

The fraudulent scheme orchestrated by BF Borgers and Benjamin Borgers has impacted over 1,500 SEC filings. The SEC has not disclosed which specific filings or companies have been affected. This raises concerns about the accuracy of financial information provided by these companies and the potential impact on investors.

BF Borgers Agrees to Pay Civil Penalty

As part of the settlement with the SEC, BF Borgers has agreed to pay a civil penalty of $12 million. This penalty is intended to hold the auditing firm accountable for its fraudulent conduct and to serve as a deterrent to other auditors engaging in similar practices.

Permanent Suspension from Practicing as Accountants

In addition to the civil penalty, BF Borgers and its owner Benjamin Borgers have been permanently suspended from practicing as accountants on SEC filings. This suspension is a significant consequence of their fraudulent conduct and serves as a strong message that such behavior will not be tolerated by the SEC.

Previous Auditors of Trump Media

Prior to BF Borgers, Trump Media had gone through at least two other auditors. One auditor resigned the account in July 2023, and another was terminated by the board in March. The circumstances surrounding the departure of these auditors and the re-hiring of BF Borgers are unclear.

Trump Media’s Response to SEC Charges

In response to the SEC charges, Trump Media released a statement expressing its anticipation of working with new auditing partners in compliance with the recent SEC order. The company acknowledges the seriousness of the allegations against BF Borgers and Benjamin Borgers and is committed to upholding the integrity of its financial reporting.

Details of Borgers’ Fraudulent Conduct

According to the SEC, Benjamin Borgers and his audit firm, BF Borgers, engaged in fraudulent conduct that undermined the integrity of the auditing process. Borgers failed to adequately prepare and maintain audit documentation, falsely claimed to have conducted audit planning meetings, and used previous audits as if they were for the current audit period. This fraudulent conduct put investors and markets at risk by causing public companies to incorporate non-compliant audits and reviews into their filings. The SEC considers this behavior to be a significant failure by gatekeepers in the financial markets.

SEC’s Stance on BF Borgers

The SEC has taken a strong stance against BF Borgers and its owner Benjamin Borgers. Out of 369 clients served by BF Borgers, the majority of their filings from January 2021 through June 2023 did not meet the SEC’s regulations. The auditor engaged in unethical practices, including duplicating audit documentation from previous years, altering important dates, and presenting it as current documentation. The fabricated documentation included records of work that was never performed and falsely claimed that planning meetings with clients took place. The SEC’s allegations against BF Borgers and Benjamin Borgers represent a serious breach of trust in the financial markets.

Trump’s Media Head under SEC’s Review

The SEC is now reviewing the head of Trump Media, which includes a review of the company’s auditor, BF Borgers. The recent annual report filing of Trump Media revealed that BF Borgers was named as the auditor for the company on March 28. The audits conducted by BF Borgers took place prior to the company’s public debut through a merger with Digital World Acquisition Corp. The merger involved a shell company with substantial funds.

Audits Conducted Prior to Company’s Public Debut

BF Borgers conducted audits for Trump Media prior to the company’s public debut. These audits played a crucial role in ensuring the accuracy and reliability of the financial information provided by the company. However, the allegations of fraudulent conduct by BF Borgers have raised concerns about the integrity of these audits and the accuracy of the financial information disclosed by Trump Media.

Auditor’s Penalties and Suspension

In response to the SEC’s charges, BF Borgers has agreed to pay a civil penalty of $12 million. Benjamin Borgers, the owner of BF Borgers, has agreed to pay a civil penalty of $2 million. Both individuals have also been permanently suspended from practicing as accountants on SEC filings. These penalties and suspensions serve as consequences for the fraudulent conduct of BF Borgers and Benjamin Borgers.

Unclear Impact on Filings and Companies

While the fraudulent scheme orchestrated by BF Borgers and Benjamin Borgers has impacted over 1,500 SEC filings, it is unclear which specific filings or companies have been affected. This lack of clarity raises concerns about the accuracy and reliability of financial information provided by these companies and the potential impact on investors.

SEC’s Stand on BF Borgers

The SEC has taken a strong stance against BF Borgers, as indicated by the charges filed against the company and its owner Benjamin Borgers. The majority of BF Borgers’ filings from January 2021 through June 2023 did not meet the SEC’s regulations. The auditor engaged in unethical practices, including duplicating and fabricating audit documentation. These practices not only compromised the accuracy and reliability of financial information but also undermined trust and confidence in the markets. The SEC’s actions against BF Borgers send a clear message that such behavior will not be tolerated.

Trump Media’s Financial Challenges

In addition to the allegations and charges against its auditor, Trump Media is facing financial challenges. The company recently merged with Digital World Acquisition Corp, a publicly traded shell company. However, the share price of Trump Media has experienced a decline since its initial launch. Despite these challenges, the former president, Donald Trump, has seen an increase in his wealth as a result of his ownership stake in the company.

Merge with Digital World Acquisition Corp

Trump Media recently merged with Digital World Acquisition Corp, a publicly traded shell company. This merger allowed Trump Media to go public and access substantial funds. However, the share price of Trump Media has experienced a decline since the merger, indicating challenges in the company’s performance and market perception.

Decline in Share Price of Trump Media

The share price of Trump Media has declined since its initial launch. This decline may stem from concerns about the company’s financial performance, market reception, and the allegations against its auditor, BF Borgers. While the share price experienced a decline of over 5% on a specific day, it still showed an overall increase of nearly 14% over the past five trading days.

Increase in Former President’s Wealth

Despite the challenges faced by Trump Media, the former president, Donald Trump, has seen an increase in his wealth. As the largest shareholder of Trump Media, the former president recently qualified for a bonus based on the company’s share performance. This has resulted in a boost in the paper value of his stake to $3.7 billion.

Current Valuation of Trump Media

Despite the decline in its share price, Trump Media still holds a valuation exceeding $6.5 billion. This valuation reflects the market’s perception of the company’s potential and its position within the media industry. While the company faces financial challenges, its current valuation indicates that there is still confidence in its future prospects.

In conclusion, the SEC charges against BF Borgers and its owner Benjamin Borgers have exposed significant fraudulent conduct and raised concerns about the integrity of the auditing process. The permanent suspension of BF Borgers from practicing as accountants on SEC filings and the civil penalties imposed on the company and its owner serve as consequences for their actions. The impact of the fraudulent scheme on specific filings and companies is unclear, but the allegations highlight the need for transparency and accuracy in financial reporting. Trump Media, the company audited by BF Borgers, is also facing financial challenges, including a decline in share price. Despite these challenges, the former president has seen an increase in his wealth as a result of his ownership stake in the company. The current valuation of Trump Media reflects the market’s perception of its potential.