The Securities and Exchange Commission (SEC) has charged BF Borgers, the independent accounting firm for Trump Media & Technology Group, with widespread fraud, labeling it a “sham audit mill.” The SEC’s allegations against BF Borgers include “deliberate and systemic failures,” such as fabricating audit documentation and misleading clients about compliance with accounting standards.
This fraud, described as “massive,” occurred from January 2021 to June 2023, affecting over 1,500 SEC filings and more than 500 public companies. As a result, the SEC has permanently suspended BF Borgers from practicing as accountants before the agency and imposed fines totaling $14 million on the firm and its owner, Benjamin Borgers.
Gurbir Grewal, the SEC’s enforcement division director, stated, “Borgers and his sham audit mill have been permanently shut down.” Public companies that previously hired BF Borgers will need to find new accounting firms, a move that Trump Media has already announced.
“Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order,” said spokesperson Shannon Devine. Although Trump Media is BF Borgers’ highest-profile client, the firm had a total of 350 clients subject to SEC regulations during the investigation period. It is important to note that the SEC’s review did not assess BF Borgers’ work for Trump Media while it was a private entity.
Despite Trump Media’s valuation exceeding $9 billion, the company generates minimal revenue, and its platform, Truth Social, has struggled to compete in the social media landscape. Recent data shows Truth Social’s average daily active users fell by 19% year-over-year to 113,000 in April, significantly lagging behind its competitors.
The SEC discovered that at least 75% of BF Borgers’ public company clients did not comply with accounting standards. This is not the first disciplinary action against Borgers, as regulators in Colorado have previously targeted him for violations dating back to 2019.
In March, the Association of International Certified Professional Accountants terminated BF Borgers from its peer review program due to severe deficiencies in performance. Trump Media announced the firm as its public accountant shortly before the SEC charges were filed.
