The U.S. Securities and Exchange Commission (SEC) has taken decisive action against BF Borgers CPA PC and its owner, Benjamin F. Borgers, charging them with extensive failures in their audit practices, affecting over 1,500 SEC filings between January 2021 and June 2023. The firm, which audited Trump Media, among other clients, has been labeled a “sham audit mill,” accused of generating false documents, conducting non-existent work, and creating fictitious meeting records.
The SEC’s findings indicate that BF Borgers systematically misrepresented the compliance of their audits with Public Company Accounting Oversight Board (PCAOB) standards. They are accused of fabricating audit documentation to appear compliant and falsely asserting in audit reports that their audits were in line with PCAOB regulations. These misrepresentations were included in over 500 public company filings.
In response to these serious charges, BF Borgers has agreed to a settlement involving a $12 million civil penalty, while Benjamin Borgers will pay a $2 million fine. Both parties have also consented to permanent suspensions from practicing as accountants before the Commission.
The SEC’s investigation revealed inadequate supervision and review within BF Borgers. The firm routinely reused workpapers from previous audits by merely updating the dates, then passed these off as current, a direct violation of required standards. This practice included documenting non-existent planning meetings and approvals by Benjamin Borgers and engagement quality reviewers, which never occurred.
The SEC’s order concluded that the respondents engaged in improper professional conduct, violating multiple federal securities laws concerning antifraud and recordkeeping, among others. As part of the settlement, without admitting or denying the findings, BF Borgers and Benjamin Borgers have consented to orders requiring them to cease and desist from future violations and to pay significant penalties.
