In a major blow to the auditing industry, the American stock exchange watchdog SEC has accused accountant BF Borgers CPA of large-scale fraud. The SEC 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.
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 SEC commended its staff for their meticulous work in permanently disqualifying Borgers and his company. This decision marks a significant victory for investor protection and ensuring that financial statements are accurate and reliable.