SEC fines BF Borgers $14 million and bars them from auditing public companies
- SEC charges auditing firm used by Trump’s Truth Social with ‘massive fraud’
- BF Borgers and its owner fined $14 million and barred from auditing public companies
- Hundreds of audits contained deliberate and systemic failures
- False documentation used to make reports appear compliant
- Firm charged with falsely telling clients their work complied with standards
- 75% of filings by BF Borgers clients did not comply with standards
- Firm provided auditing services to Trump Media & Technology Group
- Shares of Trump’s media company have fluctuated since going public
The Securities and Exchange Commission (SEC) has charged BF Borgers CPA PC, the auditing firm used by Donald Trump’s Truth social media company, with ‘massive fraud’. The SEC found that hundreds of audits conducted by BF Borgers contained deliberate and systemic failures, including false documentation to make reports appear compliant with standards set by the Public Company Accounting Oversight Board. As a result, the firm and its owner, Benjamin F. Borgers, have agreed to a permanent bar from working as accountants for companies making filings with the SEC and will pay civil penalties of $14 million. This case is one of the largest failures by gatekeepers in our financial markets, undermining trust and confidence in our markets, according to Gurbir Grewal, director of the SEC’s enforcement division. BF Borgers provided auditing services to the Trump Media & Technology Group Corp. since 2022. The SEC did not disclose the names of the affected firms. Shares of Trump’s media company have experienced fluctuations since going public, with prices doubling in recent weeks amidst a campaign against short sellers.
Factuality Level: 9
Factuality Justification: The article provides a detailed account of the charges brought against the auditing firm used by Donald Trump’s Truth social media company by the Securities and Exchange Commission. It includes direct quotes from SEC officials and clearly outlines the fraudulent conduct of the firm. The information presented is specific, relevant, and based on official statements and documents, contributing to a high factuality level.
Noise Level: 2
Noise Justification: The article provides a detailed and relevant account of the charges brought against the auditing firm used by Donald Trump’s Truth social media company. It includes quotes from the SEC and provides specific details about the fraudulent conduct. The article stays on topic, supports its claims with evidence from the SEC, and does not contain irrelevant information or filler content. Overall, the article is focused, informative, and holds accountable the auditing firm and its owner for their actions.
Financial Relevance: Yes
Financial Markets Impacted: The auditing firm’s fraudulent conduct and charges of massive fraud by the Securities and Exchange Commission may impact investor trust and confidence in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses charges of massive fraud by an auditing firm used by Donald Trump’s Truth social media company. The fraudulent conduct of the auditing firm may have implications for investor trust and confidence in financial markets. However, there is no mention of an extreme event in the article.
Public Companies: Trump Media & Technology Group (DJT)
Private Companies: BF Borgers CPA PC
Key People: Benjamin F. Borgers (Owner of BF Borgers CPA PC), Gurbir Grewal (Director of the SEC’s enforcement division)
Reported publicly:
www.marketwatch.com 
