SEC Charges Trump Media Auditor With Fraud

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SEC Charges Trump Media Auditor With Fraud

Auditor That Works for Trump Media Is Charged With Fraud

Regulators said BF Borgers failed to abide by accounting rules that its public company clients are required to follow.

 The S.E.C. held BF Borgers and its owner responsible for “deliberate and systemic failures” to comply with accounting rules. Credit…Alamy

By Matthew Goldstein

An accounting firm that audits the financial statements of hundreds of public companies including former President Donald J. Trump’s social media company can no longer do so, U.S. securities regulators said on Friday.

The Securities and Exchange Commission charged the firm, BF Borgers, with fraud, saying that it had failed to comply with accounting rules. In settling with the S.E.C., the firm agreed to immediately stop filing audited statements on behalf of its clients.

The regulator held BF Borgers and its owner, Benjamin F. Borgers, responsible for “deliberate and systemic failures” to comply with accounting rules. The accompanying settlement requires both the firm and Mr. Borgers to pay a total of $14 million in civil penalties. Many companies that used BF Borgers must now find new auditors.

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Matthew Goldstein covers Wall Street and white-collar crime and housing issues. More about Matthew Goldstein

A version of this article appears in print on May 4, 2024, Section B, Page 6 of the New York edition with the headline: Trump Media’s Accounting Firm Is Charged With Fraud by S.E.C..