Financial Regulators Permanently Ban Accounting Firm Hired by Parent Company of Donald Trump’s Media Platform
Financial regulators have permanently banned the accounting firm hired by the parent company of Donald Trump’s media platform after an investigation revealed shocking misconduct. The Securities and Exchange Commission (SEC) found that the Lakewood, Colorado accounting firm BF Borgers and its owner Benjamin F. Borgers were not conducting proper audits and instead were cutting corners by copying and pasting old work into new papers and forging dates.
According to the SEC’s probe, Borgers instructed audit staff to simply copy previous workpapers and paste them into new audit reports for new client engagements. The staff would then update the dates but leave all other information unchanged. Additionally, Borgers falsely documented nonexistent work by claiming to be meeting with engagement partners to discuss potential risks from an audit.
The SEC’s Director of Enforcement, Gurbir S. Grewal, condemned Borgers and his firm for their “deliberate and systematic failure” in auditing public companies. Regulators discovered that Borgers failed to properly review or supervise audit work, rarely interacting with staff level auditors. The falsified workpapers were meant to deceive investors into thinking the firm’s audit engagements were compliant with accounting standards.
In response to the ban, Trump Media fired Borgers and hired Semple, Marchal & Cooper, LLP, a Phoenix-based accounting firm. The new firm has a clean record according to a 2018 report from the Public Company Accounting Oversight Board (PCAOB). Trump Media, with a market cap of $6.7 billion, made the switch to ensure transparency and compliance in their financial reporting.
The SEC’s enforcement action serves as a warning to accounting firms and auditors who neglect their responsibilities in the financial markets. Investors rely on accurate and trustworthy financial statements, and any misconduct in the auditing process can have serious consequences. Borgers and his firm have been permanently shut down, highlighting the importance of maintaining integrity and professionalism in the accounting industry.
