The longtime accounting firm for former President Donald Trump has informed his company that a decade’s worth of its financial statements ‘should no longer be relied upon’ – and asserts it now has a ‘conflict of interest’ with the company.
The letter from the firm cites in part its own investigation to say that while there are not ‘as a whole, material discrepancies’ in the documents, that it is their ‘advice’ to no longer ‘rely’ on them.
New York AG Letitia James, who has cited the company’s Statements of Financial Condition in her probe of the Trump Organization, included the letter in a filing Monday.
The withdrawal marks a stunning departure for the firm that has been the center of years worth of lawsuits regarding Trump’s financial information, including a fight that went all the way to the Supreme Court.
Adding to the sting, the firm noted that Donald and Melania Trump’s returns are due Tuesday – and that they face a filing penalty of $10,000 per return if they miss the deadline.
‘We are not able to provide any new work product to the Trump Organization,’ the firm wrote in a Feb. 9 letter to the company’s chief legal officer, Alan Garten.
The letter ending the long-term financial relationship comes amid an investigation where the AG is already accusing the company of using ‘fraudulent or misleading asset valuations to obtain a host of economic benefits.’
Former President Donald Trump’s longtime accounting firm, Mazars, says company financial statements it prepared from 2001-2010 should not be ‘relied upon’
It tells the company that its Statements of Financial Condition – which the Trump Organization in the past has provided to media members and lenders alike – can no longer be relied upon.
Lawyers for the AG’s office submitted the letter in a court filing as they seek to compel Trump, the firm, and Trump family members to comply with subpoenas seeking documents and testimony.
‘We write to advise that the Statements of Financial Condition for Donald J. Trump for the years ending June 30, 2011 – June 30, 2020 should no longer be relied upon and you should inform any recipients thereof who are currently relying upon one or more of those documents that those documents should not be relied upon,’ according to the letter from Mazars, dated Feb. 9, 2022.
‘We have come to this conclusion based, in part, upon the findings made by the New York Attorney General on January 18, 2022, our own investigation, and information received 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,’ the letter continues.
New York Attorney General Letitia James accuses Trump of using ‘fraudulent’ asset valuations to get benefits
James released a letter from Mazars to the Trump Organization
Happy Valentine’s Day: The letter tells the company to file return information Tuesday to avoid a $10,000 penalty
James’ office has cited valuations on financial statements of Trump properties such as Seven Springs in New York
‘As we have stated in the statements of financial condition Mazars performed his work in accordance with professional standards. His subsequent review of those work papers confirms this,’ the company wrote.
‘Due in part to our decision regarding the financial statements, as well as the totality of the circumstances, we have also reached the point such that there is a non-waivable conflict of interest with the Trump Organization,’ the firm continued. ‘As a result, we are not able to provide any new work product to the Trump Organization,’ the letter said.
A prior filing accused Trump of claiming his Manhattan penthouse was 30,000 sq ft when it was only 11,000
It was not immediately clear what the firm meant when it referred to a conflict of interest.
The Trump Organization did not respond specifically to a question about whether the accounting firm concluded it could end up in legal conflict with its former client over past statements of financial condition, which have become a key area of James’ investigation.
However, a Trump Organization spokesperson told DailyMail.com: ‘While we are disappointed that Mazars has chosen to part ways, their February 9, 2022 letter confirms that after conducting a subsequent review of all prior statements of financial condition, Mazars’ work was performed in accordance with all applicable accounting standards and principles and that such statements of financial condition do not contain any material discrepancies. This confirmation effectively renders the investigations by the DA and AG moot.’
Trump has repeatedly denied wrongdoing, and has called the probe a ‘witch hunt.’
The letter also makes reference to the son of former Trump bodyguard Matthew Calamari, who federal prosecutors last year indicated they have no intention of charging.
It says only a ‘limited number’ of returns are yet to be filed, including ‘those of Donald J. Trump and Melania Trump.’ The due date is Feb. 15th. ‘We believe the only information left to complete those returns is the information regarding the Matt Calimari Jr. apartment,’ and that the return can be completed once it is provided.
NBC News reported in September that Matthew Calamari Jr., who also works for the company, was called to testify before a grand jury.
Trump’s lawyers have been fighting James’ demand for testimony.
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