The 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.
Investors have expressed concern about the impact of this scandal on the broader financial system. The SEC has not specified if there were any fraud in Trump Media & Technology Group Corp.’s annual accounts, but the company has announced that it will search for a new auditor. This news is likely to lead to increased scrutiny and oversight in the audit profession, as well as greater transparency and accountability for companies that rely heavily on audited financial statements to make business decisions.