The Securities and Exchange Commission (SEC) has brought charges of "massive fraud" against the auditing firm responsible for Trump Media, revealing a breach that impacted over 1,500 filings.
According to CNBC, BF Borgers CPA and its owner, Benjamin Borgers, have accepted permanent suspension from practicing as an accountant before the SEC and will pay a total of $14 million in civil penalties.
This development has sent shockwaves through the financial markets, raising doubts about the accuracy of financial data in thousands of reports, including those filed by Trump Media.
The Fraud Activities Made By Trump Media Auditor
The fraudulent activities committed by BF Borgers CPA and its owner, Benjamin Borgers, as outlined by the Securities and Exchange Commission (SEC), include deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards, both in audits and reviews, incorporated in more than 1,500 SEC filings from January 2021 through June 2023.
They were also charged with falsely assuring clients that their work complied with PCAOB standards, fabricating audit documents to create the appearance of compliance, and falsely stating in audit reports included in over 500 public company SEC filings that their audits met PCAOB standards.
The SEC deemed these actions a "sham audit mill" and a severe breach of trust within financial markets.
The fallout from these charges has already begun, with Trump Media's stock plummeting 9% in early trading.
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