The SEC believes that the auditing firm BF Borgers has deliberately carried out deficient audits and the company refuses to practice.
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The US Financial Supervisory Authority SEC accuses the accounting firm used by Trump Media of having committed “massive fraud”.
This is stated in a press release from the SEC.
Finanstilsynet believes that the auditing firm BF Borgers CPA PC and its founder Benjamin Borgers have deliberately and systematically failed to report according to auditor standards in more than 1,500 audits.
Borgers and his firm have agreed to pay fines totaling $14 million, according to the release. This corresponds to around NOK 152 million at today’s exchange rate.
The firm is also permanently suspended from practicing auditing for listed companies, writes CNBC.
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“Has undermined trust”
SEC Director Gurbir S. Grewal says BF Borgers has not only created risk for investors and markets, but also undermined confidence in the markets.
– Because investors rely on the audited reports of publicly traded companies when making investment decisions, the auditors and audit firms that perform the audit play a critical role in our financial markets, Grewal says in the message from the SEC.
– Borgers and his company completely walked away from that role, but thanks to the diligent work that the SEC’s employees have put in, Borgers and his scam company are being shut down, he says.
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BF Borgers is one of the most productive auditing firms in the United States, according to Bloomberg.
Trump Media, where Donald Trump is the largest shareholder, still listed BF Borgers as an independent auditor on its website on Friday morning US time, writes CNBC.
Fall for Trump stock
Trump Media shares fell from the start in Wall Street trading on Friday, and are down 4 percent at the time of writing.
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The company, whose full name is Trump Media & Technology Group, was listed on the New York Stock Exchange in March. Trump Media owns Donald Trump’s social platform Truth Social.
Neither the company, its founder nor the SEC have commented on the matter to Bloomberg. CNBC has attempted to obtain comment from Trump Media, without success.
