Trump Media auditor charged by SEC with 'massive fraud,' permanently barred from public company audits
Last edited Fri May 3, 2024, 11:45 AM - Edit history (1)
Source: CNBC
Published Fri, May 3 2024 9:34 AM EDT Updated 4 Min Ago
The auditing firm for Trump Media and the auditors owner were charged Friday with massive fraud by the Securities and Exchange Commission for accounting work that affected more than 1,500 SEC filings, the federal regulator announced.
The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, without admitting or denying the allegations, the SEC said.
The agency, calling BF Borgers a sham audit mill, said the company and its owner deliberately systematically failed to conduct in accordance with Public Company Accounting Oversight Board standards audits and quarterly reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023.
The SEC said the Lakewood, Colorado-based auditor lied to clients by saying its work complied with PCAOB standards, fabricated audit documents to make it seem that the work did comply with those standards, and falsely claims in audit reports included in more than 500 public company SEC filings that the firms audits complied with such standards.
Read more: https://www.cnbc.com/2024/05/03/trump-media-auditor-charged-by-sec-with-massive-fraud-permanently-barred-from-public-company-audits.html
Link to SEC PRESS RELEASE - SEC Charges Audit Firm BF Borgers and Its Owner with Massive Fraud Affecting More Than 1,500 SEC Filings
Article updated.
Previous articles -
The auditing firm for Trump Media and the auditor's owner were charged Friday with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings, the federal regulator announced.
The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, with admitting or denying the allegations, the SEC said.
The agency, calling BF Borgers a "sham audit mill," said the company and its owner engaged in "deliberate and systemic failures to comply with Public Company Accounting Oversight Board ... standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023," according to a press release.
The respondents also were charged with falsely telling clients that the auditor's work would comply with PCAOB standards, fabricating audit documents to make it seem that the work did comply with those standards, and "falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards," the release said.
The auditing firm for Trump Media and the auditor's owner were charged Friday with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings the federal regulator announced.
The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, with admitting or denying the allegations, the SEC said.
The agency accused BF Borgers and its owner of "deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023," according to a press release.
The respondents also were charged with falsely telling clients that the auditor's work would comply with PCAOB standards, with fabricating audit documents to make it seem that the work did comply with those standards, and "falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards," the release said.
The auditing firm for Trump Media and the auditor's owner were charged with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings.
The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties.
This is breaking news. Please check back for updates.
The auditor for Trump Media and the auditor's owner were charged with "massive fraud" by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings.
This is breaking news. Please check back for updates.
Original article -
This is breaking news. Please check back for updates.
Ocelot II
(116,122 posts)Birds of a feather and all that...
underpants
(183,168 posts)The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, the SEC said Friday.
COL Mustard
(6,021 posts)The walls are starting to crumble. Eventually Smelvis von Shitzenpants will have his due.
Gimble
(14 posts)I'm going to use that from now on for those times when I want to use his full name.
COL Mustard
(6,021 posts)But Im also going to use it!!!
FakeNoose
(33,016 posts)That was in the news as recently as this week. What an idiot! I'm shocked to learn that he's a real person. I assumed "Borgers" was a bot of some kind.
underpants
(183,168 posts)Person of Interest
(367 posts)You can't make this stuff up!!
Comfortably_Numb
(3,874 posts)if they go to work for him they are admitting that they have neither morals nor shame.
Prairie_Seagull
(3,359 posts)The accountants made me do it.
FredGarvin
(488 posts)FredGarvin
(488 posts)Trump is worth $6 billion more with this pump and dump fiasco
Criminality right out in the open.
Wall Street is a joke
jvill
(232 posts)only the best.
orangecrush
(19,704 posts)And this is headline news, right?
(Edit - just checked. CNN did pick this up. About time they did their job.)
ArkansasDemocrat1
(1,338 posts)cilla4progress
(24,850 posts)is stunning...
iluvtennis
(19,936 posts)LetMyPeopleVote
(146,240 posts)WOW. I have an accounting degree and passed the CPA exam a very long time ago. In those days, if you passed the bar exam, you got a simple post card with your grade. When you passed the CPA exam, you got a thick envelope with the take home ethics exam. Maybe the accounting profession needs more ethics testing.
Link to tweet
https://www.ft.com/content/16947980-2da2-49f3-980c-401c80cb36a9
The US regulator charged the firm, BF Borgers, and its founder, Ben Borgers, on Friday with falsely representing to clients that its audit work would comply with US standards, and fabricating documentation.
It said Borgers, one of the most prolific auditors of US public companies, was responsible for one of the largest wholesale failures by gatekeepers in our financial markets.
Without admitting or denying the SECs findings, the firm has agreed to pay a $12mn penalty and Ben Borgers to pay $2mn. Ben Borgers did not immediately respond to a request for comment.
Borgers has expanded rapidly to become auditor to hundreds of small and microcap companies including the former US presidents Trump Media & Technology Group but the SEC said that three-quarters of its audits were faulty.
The agency said it was stepping in to permanently close what it called a massive fraud and sham audit mill, and it told Borgers clients they would need to check past financial statements in case they contained errors. The firms deliberate and systemic failure to meet professional standards affected more than 1,500 company filings, the SEC said.
IronLionZion
(45,706 posts)the poor innocent fellow just wants to make America great again but can't catch a break. There are crooks and liars all around him.
Martin68
(23,052 posts)Justice matters.
(6,965 posts)Birds of a feather in massive criminality
SleeplessinSoCal
(9,222 posts)Certainly that was a big sign of fraud.
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