The U.S. stock market watchdog SEC has accused accountant BF Borgers CPA of large-scale fraud, including as an auditor of Donald Trump’s social media company. The SEC permanently suspended the company and its founder Benjamin Borgers, who must pay a $14 million settlement.
The SEC alleged that Borgers and his auditing firm were responsible for one of the biggest failures in financial markets, as investors rely on audited financial statements when making investment decisions. This failure could have had major consequences for the economy and industry as a whole.
Trump Media & Technology Group Corp., Borgers’ biggest client, has announced it will seek a new auditor. The SEC did not specify whether there was fraud in the company’s annual accounts. The company has not yet responded to the SEC’s allegations of fraud, but it is likely to face significant fallout from this scandal.
The SEC commended its staff for their meticulous work to permanently disqualify Borgers and his company. This action sends a strong message to other accounting firms about the importance of ethical behavior and accuracy in financial reporting. It also highlights the need for better oversight of the accounting industry to prevent future instances of fraud and misconduct.