Audit Firm and its Owner Charged with Major Fraud in Over 1,500 Financial Reports

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May 3, 2024

Audit Firm and Its Owner Charged with Major Fraud in Over 1,500 Financial Reports

On May 3, 2024, the Securities and Exchange Commission (SEC) announced that it has charged BF Borgers CPA PC and its owner, Benjamin F. Borgers, with serious misconduct. They were found to have repeatedly failed to meet required auditing standards in their reviews and audits, which were part of over 1,500 filings to the SEC from January 2021 to June 2023.

The charges include:

Misleading their clients by claiming that their audits met official standards when they did not
Falsifying audit documents to appear as though they were compliant
Incorrectly stating in reports that their audits were up to standard

As a result, BF Borgers has agreed to pay a $12 million fine, and Benjamin Borgers will pay $2 million. Both are also banned from working as accountants for any entities regulated by the SEC.

The SEC pointed out that this misconduct has jeopardized investor trust and the integrity of the financial markets because accurate and reliable financial statements are crucial for investment decisions. The SEC highlighted the failure of the firm to properly oversee the audit process, maintain accurate records, or perform necessary quality reviews.

Ultimately, these actions led to a large number of inaccurate public filings. The investigation into these activities was managed by the SEC’s Chicago office.

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