“Massive Fraud”: SEC Shuts Down ‘Prolific’ Auditor BF Borgers, Whose Clients Include Trump Media

The US Securities and Exchange Commission (SEC) shut down auditor BF Borgers, described by the Financial Times as “one of the most prolific auditors of US public companies,” over allegations of “massive fraud” that affected more than 1,500 SEC filings, the agency announced on Friday.

Borgers agreed to a $12 million civil penalty, while owner Benjamin Borgers agreed to pay $2 million to settle the SEC’s charges. The company has also agreed to permanent suspensions from practicing as accountants on SEC filings, effective immediately.

According to the SEC, a “significant” number of listed companies will have to switch accountants in the coming days due to the enforcement action.

Clients include Trump Media.

“Trump Media looks forward to working with new auditing partners in accordance with today’s SEC order,” a spokesperson for Trump’s media company told Reuters in an email.

Borgers has also acted for fintech and crypto companies, and many other small issuers, SEC filings show.

According to the SEC, Borgers did not properly prepare and maintain audit documentation, fabricated audit planning meetings, and in some cases simply passed off previous audits for the current audit period.

Of 369 BF Borgers clients whose filings from January 2021 through June 2023 incorporated BF Borgers’s audits and reviews, at least 75% incorporated audits that did not comply with the SEC’s rules.

According to SEC Enforcement Division Director Gurbir Grewal, “Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets.”