BF Borgers is an American accounting firm based in Lakewood, Colorado that specialized in public accounting.[1][non-primary source needed]
The firm catered to small and microcap companies through discounted fees compared to the Big Four accounting firms.[2]
History
editThe firm was founded in 2009 by BF Borgers, a former IT consultant who started a second career in accounting.[2]
In 2024, the firm gained notoriety for being the auditor of Trump Media & Technology Group (TMTG).[3]
Staff
editIn 2023, the firm had approximately 50 staff, of which 10 were Certified Public Accountants (CPAs).[2]
In 2023, the company founder, Ben Borgers, was the most prolific individual auditor of US public companies, attesting to 143 public company audits, more than five times any other accountant in the US.[2]
Controversies
editCanada
editIn December 2023, the firm was banned by the Canadian Public Accountability Board (CPAB) from accepting new clients in Canada for failure to adhere to Canadian Auditing Standards (CAS).[4][5]
United States
editThe firm's founding partner, Ben F Borgers, was criticized for his inconsistent naming in filings, using 14 different spellings including Ben F Brogers, Blake F Borgers, Ben F Vonesh and Ben F orgers, raising concerns over the level of detail audits received.[6]
In 2022 and 2023, the firm had the worst inspection record of any accounting firm overseen by the Public Company Accounting Oversight Board (PCAOB) having a 100% deficiency rate for the 21 audits reviewed.[2][7]
In March 2024, the firm's founding partner, Ben Borgers, was fined $5000 and issued a "letter of admonition" by the Colorado State Board of Accountancy for conducting retirement plan audits without "due care".[2]
On May 3, 2024, the United States Securities and Exchange Commission (SEC) charged the firm with fraud for 1500 SEC filings, including 500 public companies, between January 2021 through June 2023 for failing to comply with PCAOB standards.[8][9] The firm received a $12 million fine and a lifetime ban.[9] The firm was found to have falsified audits, fabricated meetings, and concocted work documentation.[10][11]
References
edit- ^ "About Our Firm". BF Borgers. Retrieved May 4, 2024.
- ^ a b c d e f Foley, Stephen; Aliaj, Ortenca (April 5, 2024). "Trump Media auditor has faced repeated criticism from regulators". Financial Times. Retrieved May 5, 2024.
- ^ Dugan, Kevin T. (May 3, 2024). "Who Could Have Ever Seen That Trump Media's Auditor Is a 'Massive Fraud'?". New York Magazine. Retrieved May 5, 2024.
- ^ "ENFORCEMENT REPORT - Canadian Public Accountability Board And BF Borgers CPA PC" (PDF). Canadian Public Accountability Board. December 7, 2023. Retrieved May 5, 2024.
- ^ Ellis, Colin (January 12, 2024). "Canadian audit watchdog CPAB censures American accounting firm BF Borgers". Canadian Accountant - Accounting News, Business & Finance. Retrieved May 5, 2024.
- ^ Steer, George (April 24, 2024). "Trump Media's auditor is really bad at spelling his own name: Meet Ben F orgers (we wish we were making this up)". Financial Times. Retrieved May 5, 2024.
- ^ BEYOUD, LYDIA; WHITE, NICOLA M.; IACONE, AMANDA (April 8, 2024). "Trump Media's accounting firm has a 100% deficiency rate from audit watchdog". Fortune. Retrieved May 5, 2024.
- ^ "SEC Charges Audit Firm BF Borgers and Its Owner with Massive Fraud Affecting More Than 1,500 SEC Filings". Securities and Exchange Commission. Washington D.C. May 3, 2024. 2024-51. Retrieved May 4, 2024.
The Securities and Exchange Commission today charged audit firm BF Borgers CPA PC and its owner, Benjamin F. Borgers (together, "Respondents"), with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023. The SEC also charged the Respondents with falsely representing to their clients that the firm's work would comply with PCAOB standards; fabricating audit documentation to make it appear that the firm's work did comply with PCAOB standards; and falsely stating in audit reports included in more than 500 public company SEC filings that the firm's audits complied with PCAOB standards. To settle the SEC's charges, BF Borgers agreed to pay a $12 million civil penalty, and Benjamin Borgers agreed to pay a $2 million civil penalty. Both Respondents also agreed to permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately.
This article incorporates text from this source, which is in the public domain.
- ^ a b Goswami, Dan Mangan, Rohan (May 3, 2024). "SEC charges Trump Media auditor with 'massive fraud' on hundreds of companies, imposes lifetime ban". CNBC. Retrieved May 4, 2024.
{{cite news}}: CS1 maint: multiple names: authors list (link) - ^ BEYOUD, LYDIA; WEINSTEIN, AUSTIN; WHITE, NICOLA M. (May 3, 2024). "Trump Media's accounting firm accused of massive fraud as a 'sham audit mill' that created false papers, did nonexistent work, and fabricated meetings". Fortune. Retrieved May 4, 2024.
- ^ Goldstein, Matthew (May 3, 2024). "Auditor That Works for Trump Media Is Charged With Fraud". The New York Times. Retrieved May 4, 2024.
This article incorporates public domain material from United States Securities and Exchange Commission (SEC). U.S. Securities and Exchange Commission.
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