SEC Charges BF Borgers with Massive Fraud in Over 1,500 Filings by Hundreds of Firms

Lakewood, Colorado United States of America
At least 75% of the filings that incorporated BF Borgers' audits and reviews did not comply with accounting standards
BF Borgers agreed to pay a combined $14 million in civil penalties and is permanently suspended from practicing as accountants before the SEC
BF Borgers and its owner Benjamin Borgers deliberately failed to comply with US audit standards
SEC charges BF Borgers with widespread fraud in over 1,500 filings by hundreds of firms
Trump Media & Technology Group was one of BF Borgers' highest profile clients during this period
SEC Charges BF Borgers with Massive Fraud in Over 1,500 Filings by Hundreds of Firms

In a significant development, the Securities and Exchange Commission (SEC) has charged BF Borgers, an accounting firm that handled audits for Trump Media & Technology Group, with widespread fraud. The SEC alleges that BF Borgers and its owner Benjamin Borgers deliberately failed to comply with US audit standards on over 1,500 filings by hundreds of firms between January 2021 and June 2023. This constitutes what the SEC calls a 'massive fraud'.

The SEC's investigation found that at least 75% of the filings that incorporated BF Borgers' audits and reviews did not comply with accounting standards. The firm allegedly fabricated audit documentation and falsely represented to clients that its work would comply with these standards.

BF Borgers, which represents businesses around the world including Trump Media & Technology Group, has agreed to pay a combined $14 million in civil penalties and is permanently suspended from practicing as accountants before the SEC. The company and its owner Benjamin Borgers have also been barred from practicing before the SEC.

Trump Media & Technology Group, which owns Truth Social, was one of BF Borgers' highest profile clients during this period. The company has announced that it will be working with new auditing partners in accordance with the SEC order.

This is not the first time that BF Borgers or its owner have faced disciplinary action. In 2019, regulators in Colorado brought disciplinary action against the firm and its owner. Last month, Canada's audit regulator terminated BF Borgers' registration in the country.

The SEC's allegations focus on a period between January 2021 and June 2023 when more than 350 clients relied on the work of BF Borgers. However, the firm's work for Trump Media & Technology Group before it became a public company was not included in the SEC's investigation.

The SEC's enforcement director, Gurbir S. Grewal, stated that 'Ben Borgers and his audit firm, BF Borgers, were responsible for one of the largest wholesale failures by gatekeepers in our financial markets'. He added that they put investors and markets at risk by causing public companies to incorporate noncompliant audits and reviews into their filings with the Commission, undermining trust and confidence in the markets.


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Confidence

91%

Doubts
  • The investigation only focused on a period between January 2021 and June 2023. Were there any issues before or after this time frame?
  • Was the SEC's enforcement director's statement an accurate representation of the situation?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Accountant for Trump Media, Truth Social owner, committed widespread fraud, SEC says

Salon Media Group Friday, 03 May 2024 20:34
  • Unique Points
    • U.S. Securities and Exchange Commission (SEC) charged BF Borgers, the accounting firm handling Trump Media & Technology Group’s financial audits, with fraud for non-compliance with federal regulations.
    • Owner Benjamin Borgers and his firm agreed to pay $14 million and face a permanent suspension from practicing accounting in a settlement with the SEC.
    • BF Borgers had 350 clients during this time period subject to SEC rules.
  • Accuracy
    • ]The SEC charged BF Borgers, the accounting firm handling Trump Media & Technology Group's financial audits, with fraud for non-compliance with federal regulations.[
    • BF Borgers served as Trump Media's independent registered accounting firm before the social media company went public in March.
    • At least 75% of BF Borgers’ audits on 369 companies were not compliant from Jan 2021 to Jun 2023.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article reports on the SEC's charges against BF Borgers accounting firm for fraudulent auditing practices. The author does not commit any logical fallacies in their reporting of the facts. However, there is an instance of an appeal to authority when the SEC's director, Gurbir Grewal, is quoted saying 'Borgers and his sham audit mill have been permanently shut down.' This statement implies that the SEC's findings are definitive proof of fraudulent activity.
    • “Thanks to the painstaking work of the SEC staff, Borgers and his sham audit mill have been permanently shut down.”
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media’s accounting firm charged with ‘massive fraud’

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Matt Egan Friday, 03 May 2024 14:13
  • Unique Points
    • BF Borgers was charged by the Securities and Exchange Commission (SEC) with widespread fraud and operating a ‘sham audit mill.’
    • 'Regulators in Colorado have repeatedly brought disciplinary action against Borgers dating back to 2019.'
    • 'The Association of International Certified Professional Accountants terminated BF Borgers in its peer review program because the firm was ‘found to be so seriously deficient in its performance that education and remedial, corrective actions are not adequate.'
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump’s Precarious Truth Social Gambit Just Took a Turn for the Worse

The New Republic Ellie Quinlan Friday, 03 May 2024 00:00
  • Unique Points
    • BF Borgers and its owner, Benjamin Borgers, agreed to pay $14 million in civil penalties and are permanently suspended from practicing as accountants.
    • Gurbir S. Grewal, director of the SEC’s Division of Enforcement, called it ‘one of the largest wholesale failures by gatekeepers in our financial markets’.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media's audit firm barred by SEC over ‘massive fraud’

Politico News Site Name: POLITICO Full Legal Name of News Site: Politico LLC Location of News Site: Washington D.C., USA Friday, 03 May 2024 00:00
  • Unique Points
    • SEC has barred BF Borgers, former President Donald Trump’s social media venture’s audit firm, from practicing for ‘deliberate and systemic failures’ to comply with US audit standards on over 1500 filings by hundreds of firms.
    • The SEC called it a ‘massive fraud’.
    • BF Borgers allegedly skirted accounting standards for more than two years while working on the audits and reviews of public companies.
    • Both the firm and owner Benjamin Borgers have agreed to pay a combined $14 million to settle the SEC charges.
    • The company and owner Benjamin Borgers have been permanently suspended from practicing before the SEC as accountants, effective immediately.
    • BF Borgers represents businesses around the world including Trump Media & Technology Group.
  • Accuracy
    • SEC has barred BF Borgers from practicing for 'deliberate and systemic failures' to comply with US audit standards on over 1500 filings by hundreds of firms.
    • The SEC called it a 'massive fraud.'
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump Media's accountant is charged with "massive fraud" by the SEC

CBS News Site: https://www.cbsnews.com/articles/about-us/ Aimee Picchi Saturday, 04 May 2024 03:33
  • Unique Points
    • BF Borgers agreed to a permanent suspension from appearing and practicing before the SEC as accountants.
    • 'At least 75% of the filings that incorporated Borgers' audits and reviews failed to meet PCAOB standards.'
    • Borgers allegedly failed to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and falsely told clients that its work would comply with those standards.
    • Gurbir S. Grewal, director of the SEC's Division of Enforcement, stated that Borgers and its owner were responsible for one of the largest wholesale failures by gatekeepers in financial markets.
  • Accuracy
    • BF Borgers had about 350 clients during the period of January 2021 through June 2023 and failed to comply with accounting standards in approximately 1,500 SEC filings.
    • At least 75% of the filings that incorporated Borgers’ audits and reviews failed to meet PCAOB standards.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication