Trump’s longtime accountant cut ties, says his financial records are unreliable
Court documents showed on Monday that Donald Trump’s long-standing accountants have ditched the former US president as a client, saying he can’t rely on a decade’s worth of financial statements.
Mazars told the Trump Organization in a letter last Wednesday that it would not work for the company, which New York prosecutors are investigating for alleged fraud.
The letter was revealed in court by New York State Attorney General Letitia James, when she asked a judge to compel Trump to comply with subpoenas asking to testify in her investigation.
James announced last month that its civil investigation into the Trump family business had uncovered “significant evidence” of deceptive business practices, including fraudulent valuation of assets.
Mazars wrote that James’ findings contributed to his report that Trump’s calculations for the years ending June 30, 2011 to June 30, 2020, “should not be relied upon any longer.”
The company added that its own investigation and “information received from internal and external sources” had a role in reaching this conclusion.
“Although we have not concluded that the various financial statements, as a whole, contain material inconsistencies, based on the overall circumstances, we believe our advice to you not to rely on those financial statements any longer is appropriate,” she said.
The letter added that due in part to the decision regarding the statements, Mazars is “unable to provide any new work product for the Trump Organization.”
Financial records are at the heart of James’ investigation and criminal investigation by the Manhattan District Attorney’s Office.
The two investigations are investigating whether the Trump Organization deceived lenders into offering soft loans.
James, a Democrat, said in January that its ongoing investigation found that the Trump Organization fraudulently overvalued multiple assets to secure loans and then undervalued them to reduce taxes.
It said the company “misrepresented” the asset valuation of financial institutions including the Internal Revenue Service, banks and insurance companies for “economic benefit”.
Parallel investigations: If James finds evidence of financial misconduct, he can sue the Trump Organization for damages but cannot file criminal charges.
However, the investigation is underway alongside a similar criminal investigation by Manhattan DA for possible financial crimes and insurance fraud.
Last July, the Trump Organization and its longtime chief financial officer, Allen Weisselberg, pleaded not guilty to 15 counts of fraud and tax evasion.
The January 2021 DA finally received nearly eight years of Trump tax returns from Mazars after a protracted legal battle that went to the Supreme Court.
Trump has criticized both investigations, calling them politically motivated.
A spokesman for the Trump Organization said in a statement Monday night that they were “disappointed” with Mazars’ decision to cut ties.
The company letter confirms that after a subsequent review of all prior statements of financial position, Mazars’ work was carried out in accordance with all applicable accounting standards and principles and that these statements of financial position do not contain any material differences,” he said, thus describing both New York investigations as “argument.” .
In her filing on Monday, James reiterated her request that former President Donald Trump Jr and Ivanka Trump testify under oath. Her office has already questioned Eric Trump.
Legal problems may make running a second White House more difficult for the 75-year-old Trump, who has made Americans second-guessed about his plans.
(AFP)
