Financial regulators permanently banned Trump’s media platform’s parent company’s accounting firm for audit falsification. The accounting firm was found not conducting audits; instead, it was just pasting old work into new papers and faking the date.
However, they did not disclose if the Republican presidential candidate’s platform was not included in the findings. The accounting firm named BF Borgers is situated in Lakewood, Colorado.
Its Self-titled owner, Benjamin F. Borgers, allegedly failed to audit and supervise the financial reports of public businesses. Consequently, this led to a deliberate and systematic failure of the public accounting firm, according to the SEC.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said that the worst wholesale failures by gatekeepers in our financial markets have been as a result of certain actions carried out by Ben Borgers and his audit business, BF Borgers.
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Accountants and firms auditing public corporations’ financial statements are crucial for investors’ decisions based on audited statements. However, because of the diligent efforts of the SEC team, Borgers and his phony audit mill have been permanently shut down. Before this, Borgers and his firm had fully abandoned that position.
Regulators found that Borgers instructed audit staff to reuse previous work papers for upcoming client audits. The SEC stated that the staff fixed some dates but reused other information from an earlier audit or review.
Additionally, Borgers falsified documentation of nonexistent work by feigning attendance at meetings with engagement partners to go over possible audit concerns.
The SEC levied severe penalties on BF Borgers, including a $12 million civil penalty against the business and a $2 million civil penalty against its owner. Upon suspension, both parties were permanently barred from agency and accounting practices.
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The SEC’s Division of Enforcement Director, Gurbir S. Grewal, stated that “Borgers and his sham audit mill have been permanently shut down thanks to the painstaking work of the SEC staff.”
The company’s audit committee recommended and approved the move to switch independent registered public accounting firms. Trump Media made it clear that there were no differences over accounting issues.
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Following the allegation, Trump Media has been quick to distance itself from the firm by discontinuing its services. Publicly traded companies, of which Trump Media is part, have had to find new auditors as part of the regulatory settlement.
Trump Media hired Semple, Marchal, and Cooper on Saturday to take the auditing role. The accounting firm is located in Arizona and has a staff of 13 professional staff members, 6 partners, and 3 issuer audit clients from its shoe-sized office. Trump Media is valued at $6.7 billion on the market.
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