Trump Organization accounting firm disavows years of financial statements

0

NEW YORK — The accounting firm that prepared former President Donald Trump’s annual financial statements said the documents, used to secure lucrative loans and boost Trump’s image as a wealthy businessman, “don’t should no longer be relied upon” after the New York Attorney General said they were routinely wrong. the value of assets.

In a letter to the Trump Organization’s lawyer on February 9, Mazars USA LLP advised the company to advise anyone who obtained the documents not to use them when assessing the company’s financial health. and the former president.

The letter came just weeks after New York Attorney General Letitia James said her office uncovered evidence that Trump and the company used “fraudulent or misleading” appraisals of his golf clubs, scratchers sky and other assets to obtain loans and tax advantages.

“Although we have not concluded that the various financial statements, taken together, contain material differences, based on the totality of the circumstances, we believe that our advice to no longer rely on these financial statements is appropriate. Mazars General Counsel William J. Kelly wrote to his Trump Organization counterpart, Alan Garten.

Kelly said Mazars had done its work on the financial statements “in accordance with professional standards” but could no longer stand by the documents in light of James’ 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 preparer.

Mazars said his findings applied to Trump’s financial statements for 2011 through 2020. Another accounting firm prepared its financial statements for 2021, court documents show.

James’ office included a copy of Kelly’s letter in a Monday court filing as she seeks to enforce a subpoena for Trump and his two oldest children to testify in his civil investigation. A state court judge, Arthur Engoron, is scheduled to hear arguments in the dispute Thursday.

The Manhattan District Attorney’s Office is conducting a parallel criminal investigation into Trump’s business practices.

Trump gave his financial disclosure statement – ​​an annual overview of his holdings – to banks to secure hundreds of millions of dollars in loans on properties such as a Wall Street office building and a golf course in Florida, and to financial magazines to justify his place on the list of the richest people in the world.

In a statement, the Trump Organization said Kelly’s letter “confirms that after conducting a subsequent review of all prior financial statements, Mazars’ work has been performed in accordance with all applicable accounting standards and principles and that these financial statements do not contain any material discrepancy. This confirmation effectively renders the investigations conducted by the DA and AG moot.”

Share.

About Author

Comments are closed.