Trump Media's Auditor Banned By SEC For 'Massive Fraud'
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Key TakeawaysThe auditing firm for Donald Trump’s Trump Media and other companies, BF Borgers, as well as its owner Benjamin Borgers, were fined and banned for life by the U.S. Securities and Exchange Commission (SEC) for what officials called "massive fraud."Regulators said BF Borgers and Benjamin Borgers failed to comply with PCAOB standards and lied about it.The company and Borgers agreed to pay $12 million and $2 million in civil penalties, respectively, and be permanently suspended from appearing and practicing before the SEC as accountants.
The auditing firm for Donald Trump’s Trump Media & Technology Group (DJT) and other companies, BF Borgers, as well as its owner Benjamin Borgers, were fined and banned for life by regulators who accused them of “massive fraud.”'Deliberate and Systemic Failures To Comply'The Securities and Exchange Commission (SEC) charged BF Borgers and Benjamin Borgers with “deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023.” In addition, the SEC said the company and Borgers lied to their clients, fabricated audit documentation, and falsely stated in audit reports included in more than 500 public company SEC filings that the firm’s audits met the standards.Combined $14 Million in PenaltiesOfficials said that to settle the charges, BF Borgers and Benjamin Borgers agreed to pay $12 million and $2 million in civil penalties, respectively, and “permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately.”Last year, research firm Audit Analytics listed BF Borgers as the eighth-largest auditing firm, with 187 SEC registrant clients.At the time included in the SEC complaint, Trump Media was privately held. It went public in March through a special purpose acquisition company (SPAC).Shares of Trump Media were little changed trading at $48.72 as of 3:15 p.m. ET Friday. Read the original article on Investopedia.
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