AGS NEWS – The Securities and Exchange Commission (SEC) announced on Friday, May 3, that the auditing firm responsible for Trump Media, BF Borgers CPA, and its owner Benjamin Borgers, faced charges of “massive fraud” for their actions impacting over 1,500 SEC filings.

As part of the settlement, BF Borgers CPA and Benjamin Borgers agreed to a permanent suspension from practicing as accountants before the SEC and agreed to pay a combined $14 million in civil penalties, though they did not admit or deny the allegations.

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The SEC labeled BF Borgers as a “sham audit mill,” accusing them of deliberate and systemic failures to comply with standards set by the Public Company Accounting Oversight Board (PCAOB) in audits and reviews incorporated into SEC filings between January 2021 and June 2023.

During this period, BF Borgers served as the auditor for Trump Media, which was undergoing a merger with Digital World Acquisition Corp, leading to Trump Media becoming publicly traded under the DJT ticker in March 2024.

The SEC alleged that BF Borgers and Benjamin Borgers falsely assured clients that their work complied with PCAOB standards, fabricated audit documents to create the appearance of compliance, and falsely stated in audit reports included in over 500 public company SEC filings that the audits met PCAOB standards.

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SEC Enforcement Division Director Gurbir Grewal remarked that the actions of Benjamin Borgers and BF Borgers represented one of the largest failures by gatekeepers in financial markets, jeopardizing investors and undermining trust in the markets.