SEC Charges Trump Media Auditor With Massive Fraud Stock Slides

The US Securities and Exchange Commission (SEC) has charged former president Donald Trump's auditor, Benjamin Borgers, with a "massive fraud" and a "sham audit mill." The SEC alleges that Borgers did not properly prepare and maintain audit documentation, fabricated audit planning meetings, and passed off previous audits for the current audit period. The SEC claims that Borgers and his firm were responsible for one of the largest wholesale failures by gatekeepers in financial markets, putting investors and markets at risk and undermining trust and confidence in markets.

Of 369 BF Borgers clients whose filings from January 2021 through June 2023 incorporated BF Borgers' audits and reviews, at least 75% incorporated audits that did not comply with the SEC's rules. The company acted for Trump Media ( DJT ) during the period of the SEC's complaint. In late March, Trump Media merged with a publicly traded shell company, Digital World Acquisition Corp, in a deal that valued the minnow social network at close to $8bn. The company now trades under the ticker symbol "DJT", using Trump's initials.

Trump Media's shares ( DJT ) have fallen sharply since their debut but have continued to significantly boost the former president's wealth. The company is now valued at more than $6.5bn, with Trump as the company's largest shareholder and recently qualified for a bonus for the company's share performance that boosted the paper value of his stake to $3.7bn.