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Trump's longtime accounting firm cuts ties, cannot stand behind statements - filing

Stock Markets Feb 15, 2022 04:56AM ET
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© Reuters. FILE PHOTO: A woman walks past 40 Wall Street, also known as the Trump Building, in the Manhattan borough of New York City, New York, U.S., January 19, 2022. REUTERS/Brendan McDermid

By Karen Freifeld

NEW YORK (Reuters) - The accounting firm that handled Donald Trump's company's financial statements dropped it as a client and said it could no longer stand behind a decade of statements, a court filing showed on Monday.

Mazars USA, in a Feb. 9 letter made public on Monday, told the Trump Organization, the former president's New York-based real estate business, that its financial statements for 2011 through 2020 should no longer be relied on.

The disclosure was made as part of New York Attorney General Letitia James' civil investigation into the Trump Organization, which could result in financial penalties. That probe partially overlaps a criminal investigation by the Manhattan District Attorney, which James joined in May, into the company's practices.

Mazars said it had based its conclusion on a January filing by the New York attorney general, its own investigation and information from internal and external sources.

"While we have not concluded that the various financial statements, as a whole, contain material discrepancies, based upon the totality of the circumstances we believe our advice to you to no longer rely upon those financial statements is appropriate," Mazars said in the letter addressed to the chief legal officer at the Trump Organization, Alan Garten.

In the letter, filed in New York state court, Mazars said that it had "performed its work in accordance with professional standards."

The accounting firm also said it would no longer work for the Trump Organization.

New York state's attorney general has accused the Trump Organization of repeatedly misrepresenting the value of its assets to obtain financial benefits.

A Trump Organization spokesperson said in a statement the company is "disappointed that Mazars has chosen to part ways." But the spokesperson added the letter confirms that "Mazars' work was performed in accordance with all applicable accounting standards and principles" and that the statements of financial condition "do not contain any material discrepancies."

The New York attorney general filed the Mazars letter in support of its efforts to compel the production of outstanding documents from Trump and his company as well as testimony by him and two of his adult children, Donald Trump Jr. And Ivanka Trump.

In a memorandum also filed on Monday, the attorney general noted media reports that Trump had destroyed documents covered by the Presidential Records Act and wants him to supply a sworn statement on whether the files produced for her probe are complete and how they may have been destroyed and by whom.

Trump has decried the probe as political.

In Monday's filing, James' office said the accounting firm's statement and actions further supported the legitimacy of the investigation.

James has been investigating whether the Trumps inflated real estate values to obtain bank loans, and reduced values to lower tax bills. In one example, she said Trump's annual financial statements said an apartment he personally owned in Trump Tower was 30,000 square feet(2,787 square meters), when it was in fact a third that size.

Neither Trump nor his children have been accused of criminal wrongdoing.

Trump's longtime accounting firm cuts ties, cannot stand behind statements - filing
 

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Comments (5)
taylor jason
taylor jason Feb 15, 2022 8:42AM ET
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6 years into into the trump investigation and he is still walking around a free man.
Kaveh Sun
Kaveh Sun Feb 15, 2022 2:06AM ET
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There is no surprise. All the riches r cheaters one way or another. It wont stop until Trump is in jail.
Trevor Roberts
LimitUp Feb 15, 2022 2:06AM ET
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You are part of the problem
Benjamin USA
Benjamin USA Feb 14, 2022 11:51PM ET
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Trumps simps are starting to sense the weakness of their big daddy
Trevor Roberts
LimitUp Feb 14, 2022 11:51PM ET
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You represent what divides the country, rabid nonsense.
Jon Gr
Jon Gr Feb 14, 2022 10:42PM ET
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Dont let this distract you from the fact that the Hillary Clinton campaign conspired to spy on and fabricate a lie against her political opponent and then a sitting president.
Jay smith
Jay smith Feb 14, 2022 4:34PM ET
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Rats jumping from a sinking, burning dumpster fire.
 
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