The Securities and Exchange Commission (SEC) has accused BF Borgers CPA PC and its founder, Benjamin Borgers, of massive fraud impacting over 1,500 regulatory filings. As a result, the SEC has permanently suspended them from practicing as accountants and imposed fines totaling $14 million to settle the investigation. The SEC’s enforcement chief, Gurbir Grewal, emphasized the critical role auditors play in financial markets and condemned Borgers and his firm for neglecting their responsibilities.
BF Borgers, which has been among the most active auditors in the US, faced a 100% deficiency rate in its most recent regulatory review. The SEC’s order described instances of false audit work papers, nonexistent work, and fabricated meetings. Despite requests for comment, BF Borgers did not immediately respond, and the extent of their involvement with Trump Media & Technology Group Corp., one of their clients, remains undisclosed.
Trump Media’s Accountant Accused of Big Fraud, Making Fake Papers, Skipping Work, and Faking Meetings (Credits: AP News)
Trump Media has utilized BF Borgers’ services since 2022, even after going public through a merger with Digital World Acquisitions Corp. While inspections by the Public Company Accounting Oversight Board have not yet covered BF Borgers’ audits of Trump Media, the former president’s social-media company stood as BF Borgers’ largest client by market capitalization. However, over 80% of BF Borgers’ clients trade over the counter, indicating their inability to meet the listing requirements of larger exchanges.
Despite being among the busiest auditing firms in the US, BF Borgers has faced regulatory scrutiny in both Canada and the US. The PCAOB’s inspections highlighted significant deficiencies, with the auditor doubling its client base between 2019 and 2021 without increasing staff to manage the workload. Notably, just one person was responsible for 147 audits, raising concerns about the firm’s capacity to effectively fulfill its auditing duties.
