In a landmark move, the American stock exchange watchdog SEC has accused accountant BF Borgers CPA of large-scale fraud, including as the auditor of Donald Trump’s social media company. The SEC has permanently suspended the company and its founder Benjamin Borgers, who must pay a settlement of $14 million.
The SEC stated that Borgers and his audit firm were responsible for one of the largest gatekeeping failures in the financial markets, as investors rely on audited financial statements when making investment decisions. The SEC commended its staff for their meticulous work in permanently disqualifying Borgers and his company.
Trump Media & Technology Group Corp., Borgers’ largest customer, has announced that it will search for a new auditor. The SEC did not specify if there were any fraud in the company’s annual accounts. The company has not yet responded to the accusations made by the SEC concerning the fraudulent activities.
The suspension of Trump Media & Technology Group Corp.’s accounting services is likely to have far-reaching consequences for the company and its stakeholders. Investors may lose confidence in the company’s financial statements, which could lead to a decline in its stock price and other market indicators. Additionally, competitors may gain an advantage over Trump Media & Technology Group Corp., as they may be able to offer their own financial services without any issues with their audit firms.
