Accounting firm says Trump’s financial statements are unreliable

The accounting firm that prepared the annual financial statements of the former president Donald Trump The documents — which were used to secure lucrative loans and burnish Trump’s image as a wealthy businessman — “should no longer be trusted” after the New York attorney general said they routinely misrepresented the value of the assets. assets.

In a letter addressed on February 9 to the lawyer for the Trump Organization, Mazars USA LLP recommended that the company inform anyone who received the documents not to use them when determining the financial health of the company and the former president. The company also reported that it was ending its employment relationship with Trump, its most recognized client.

Mazars’ letter, which was released Monday when it was filed in court, comes weeks after New York Attorney General Letitia James reported that her civil investigation had uncovered evidence that Trump and his company used “fraudulent or misleading” appraisals of your golf clubs, skyscrapers and other properties to obtain credits and tax benefits.

“While we have not concluded that the various financial statements, taken as a whole, contain material discrepancies, based on the totality of the circumstances, we believe that our recommendation not to rely on such financial statements is appropriate,” Mazars’ general counsel wrote, William J. Kelly, to his Trump Organization counterpart Alan Garten.

Kelly said Mazars worked on the financial statements “in accordance with professional standards” but could no longer defend the documents following James’s findings and its own investigation.

Kelly also informed Garten that Mazars could no longer work with Trump due to a conflict of interest and urged him to find another tax preparation company. Kelly clarified that several Trump-related tax returns had yet to be finalized, including those of the former president and first lady Melania Trump.

The Trump Organization said in a statement that it was “disappointed that Mazars has chosen to end the relationship,” but took Kelly’s letter as positive because the accounting firm had found no material discrepancies in Trump’s financial statements. .

The letter “confirms that, after conducting a subsequent review of all previous financial statements, Mazars’ work was carried out in accordance with all applicable accounting principles and standards and that said financial statement statements do not contain any material discrepancies.” The Trump Organization noted. “This confirmation derails the investigations by the District Attorney’s Office and the Attorney General’s Office.”

Kelly said Mazars conducted its work on Trump’s financial statements “in accordance with professional standards” but could no longer defend the documents in the face of James’s findings and its own investigation. Kelly indicated that Mazars’ conclusions applied to Trump’s financial statements from 2011 to 2020. Another accounting firm prepared his 2021 financial statements, according to court documents.

James’ office included a copy of Kelly’s letter among documents it filed with the court Monday in its bid to have a subpoena executed for Trump and his two eldest children, Donald Jr. and Ivanka, to testify under oath. . A state judge, Arthur Engoron, is scheduled to hear arguments in the case on Thursday.

James said Monday that given the evidence, “there should be no doubt that this is a legal investigation and that we have legitimate grounds” to question Trump and his sons, who have been executives with the Trump Organization.