BF Borgers, the accounting firm for Trump Media & Technology Group, was charged with widespread fraud by the Securities and Exchange Commission (SEC) on Friday. The firm, led by its owner Benjamin Borgers, is accused of operating a “sham audit mill” that affected over 1,500 SEC filings and 500 public companies between January 2021 and June 2023.
While Trump Media, the owner of Truth Social, was not implicated in the charges, the SEC found BF Borgers guilty of systemic failures, including fabricating audit documents and falsely representing compliance with accounting standards. These actions led to the firm and Borgers being fined a total of $14 million, and they have been permanently barred from practicing before the SEC.
SEC Enforcement Director Gurbir Grewal called the firm’s activities “massive fraud” and confirmed that the firm has been permanently shut down. Public companies working with BF Borgers have been advised to find new accounting partners, including Trump Media, which has announced plans to do so.
Though Trump Media is a high-profile client, BF Borgers served 350 companies subject to SEC rules during the relevant period. Trump Media, chaired by Donald Trump, hired the firm as its public accountant in March, although the SEC’s review excluded the firm’s work for Trump Media while it was still private.
Despite Trump Media’s valuation of over $9 billion, Truth Social remains a small player in the social media space, with a significantly lower user base compared to platforms like X (formerly Twitter).
BF Borgers has faced prior disciplinary actions dating back to 2019, with the Association of International Certified Professional Accountants expelling the firm from its peer review program last year due to serious deficiencies.
BF Borgers did not respond to requests for comment.