this post was submitted on 03 May 2024
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552
Trump Media auditor charged by SEC with 'massive fraud,' permanently barred from public company audits (www.cnbc.com)
submitted 5 months ago by [email protected] to c/[email protected]
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[–] [email protected] 86 points 5 months ago* (last edited 5 months ago) (3 children)

The auditing firm for Trump Media and the auditor’s owner were charged Friday with “massive fraud” by the Securities and Exchange Commission for work that affected more than 1,500 SEC filings, the federal regulator announced.

The auditor, BF Borgers CPA and its owner Benjamin Borgers have agreed to be permanently suspended from practicing as accountants before the SEC, and also agreed to pay a combined $14 million in civil penalties, without* admitting or denying the allegations, the SEC said.

So we didn't find out that the SEC thought this auditor committed criminal conduct until the SEC had already negotiated this settlement where they don't have to admit any wrongdoing? Bang up job enforcing the laws there guys, that will definitely deter this kind of conduct from other bad actors in the accounting industry /s

*The article actually says "with" there, but the SEC post it links to says "without," so I'm fairly certain that was a typo in the news article

e; It really should go without saying, but since the conversations on this website have effectively reduced my whole personality to "why aren't more people talking about how this Democratic administration's handling of the federal government is falling short of what that party says they stand for," I feel like I should say I doubt we'd see even this pittance of enforcement out of a Republican government, so, yeah, I sincerely hope these pathetic losers get another four years to keep disappointing me because the alternative is still a hell of a lot worse

[–] [email protected] 9 points 5 months ago

Gary gensler just got caught illegally trading crypto soooo. They're all good old boys breaking the law together and paying "fines" that are just the cost of doing business. The SEC is worse than useless, they're too busy watching porn to do their jobs.

[–] [email protected] 8 points 5 months ago (1 children)

The GOV: "I like money though."

[–] [email protected] 1 points 5 months ago

I like money too.

[–] [email protected] 2 points 5 months ago

Both the company and owner permanently barred from public accounting, and the case referred to the FBI? That’s a pretty strong response

[–] [email protected] 66 points 5 months ago (2 children)

Seems like massive fraud should result in jail time, but I'm not wealthy enough to have an opinion on the matter.

[–] [email protected] 7 points 5 months ago (1 children)

SEC is only responsible for regulating, they have no ability to try/convict/imprison. I believe they did refer this case to the FBI.

Just to point this out, I think prison sounds like a fine idea for this guy, but he's been dealt a serious blow. Besides being fined 16M (2M personally), he's likely lost his ability to earn as an accountant. I doubt he could get a job as a cashier at this point.

[–] [email protected] 2 points 5 months ago

Pretty sure he, you, and I could all easily retire on whatever he has left.

[–] [email protected] 50 points 5 months ago (3 children)

Hmm. I'm starting to think some of the MAGA people might be scammers!

[–] [email protected] 12 points 5 months ago

That’s just the woke librul mind virus talking. Here, eat some fused dead animal parts and spend your savings to buy imaginary trump dollars! Slavery was helpful to everyone! There ya go - America Greating!

[–] [email protected] 6 points 5 months ago (1 children)

Just bash your head against the wall until you think Trump's drivel makes sense. There, much better, isn't it?

[–] [email protected] 2 points 5 months ago (1 children)

It is! Also, there's Freedom leaking out of my ears. That's fine, right?

[–] [email protected] 2 points 5 months ago

Try some Invermectine.

[–] [email protected] 37 points 5 months ago (1 children)

Shocking

[–] [email protected] 11 points 5 months ago (1 children)

Is this Ben F.orger?

[–] [email protected] 2 points 5 months ago

No, sorry, this is Ben F. Borger. Hey, do you need some audits "generated"? I'm compliant with with PCAOB standards, probably maybe sort of.

[–] [email protected] 29 points 5 months ago (2 children)

How bad do you have to screw up to get the SEC to give ya a permanent ban?

[–] [email protected] 12 points 5 months ago (1 children)

How bad do you have to

be if Trump hired you?

[–] [email protected] 6 points 5 months ago (1 children)

Trump only hires the most incompetent people

[–] [email protected] 5 points 5 months ago* (last edited 5 months ago)

And useful idiots

[–] [email protected] 7 points 5 months ago* (last edited 5 months ago) (1 children)

You have to lie to clients/customers by saying you comply with with PCAOB standards, fabricate audit reports for over 500 companies while actually failing to conduct real audits, resulting in a negatively affected 1,500 SEC Report filings.

This usually includes things like Annual SEC Filing 10-K reports and Quarterly 10-Q reports, both watched heavily by investors.

[–] [email protected] 10 points 5 months ago (1 children)

All the other companies that paid these shysters to lie about their accounts are looking pretty sweaty right now.

Each and every one of them knew what was going on, and every single one will now lie about it.

Jail them all.

[–] [email protected] 0 points 5 months ago

TBH a lot of them probably reported the red flags right away, since with 500 companies you could generate that many reports in 1 to 3 quarters, meaning this decision came comparatively quickly to your average court proceedings.

[–] [email protected] 22 points 5 months ago (1 children)

How much longer will idiots be willing to take the bullet for this guy!?

[–] [email protected] 2 points 5 months ago

He's been doing this grift long before he met Drumpf

[–] [email protected] 22 points 5 months ago (1 children)

Make Auditors Get Attorneys

[–] [email protected] 10 points 5 months ago

Make Attorneys Get Audited

[–] [email protected] 18 points 5 months ago

~~truth:social~~ fraud:social 😋

[–] [email protected] 18 points 5 months ago

...best people

[–] [email protected] 17 points 5 months ago

The Trump name is synonymous with fraud… all fraud, all the time.

[–] [email protected] 16 points 5 months ago (2 children)

Unless I missed where it says it in the article, does this have anything to do with the ludicrously high IPO that it had?

[–] [email protected] 27 points 5 months ago* (last edited 5 months ago) (2 children)

It wasn't an IPO, it was an existing company acquiring Truth Social. And yes, it has everything to do with that massive valuation.

If Truth Social had done an actual IPO, their financials would have been subject to public scrutiny ahead of time and the IPO would likely have never gone forward. But since this was an acquisition, much of that financial due diligence was solely the responsibility of the acquiring company. So all of that stuff could remain secret until after the fact.

The penalty doesn't state that any particular companies' filings had incorrect data, though. It just says that the auditor said it followed standard accounting practices, when it did not. And it happened with 1500 different filings, of which Trump Media was only one. Still, it doesn't take a rocket scientist to realize the reason why this auditor ignored those standards, they might have gotten in the way of the pre-determined result they wanted to get for their clients

[–] [email protected] 4 points 5 months ago* (last edited 5 months ago)

Slight correction, Truth Social was one of more than 500 companies with more than 1,500 fraudulent reports generated. Not one of 1,500 companies. SEC Reports usually include quarterly 10-Q and annual 10-K forms, among others, that are heavily monitored by investors, which is why the regulation on their accuracy is very strict.

[–] [email protected] 4 points 5 months ago

Here's the "parent company" if anyone is interested:

https://en.m.wikipedia.org/wiki/Digital_World_Acquisition_Corp.

[–] [email protected] 3 points 5 months ago

Indirectly it means they sought out the shadiest auditors around.

Directly it remains to be seen.

[–] [email protected] 3 points 5 months ago

B Forgers got spanked.

[–] [email protected] 2 points 5 months ago (1 children)

So, you s the absolute pittance of income they had a lie too?

[–] [email protected] 2 points 5 months ago

What's that?

[–] [email protected] 2 points 5 months ago

I bet they asked an LLM to make up bullshit reports for them or something, that seems par for game these days.