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Accounting Firm Mazars Cuts All Ties With Trump and Retracts Previous Financial Statements

Accounting Firm Mazars Cuts All Ties With Trump and Retracts Previous Financial Statements

The New York Times is reporting that Donald Trump’s longtime accounting firm abruptly cut ties with his family business last week amid their ongoing criminal and civil investigations into whether Trump illegally inflated the value of his assets, court documents filed on Monday show.

In a letter to the Trump Organization on February 9th, the firm, Mazars USA, notified the company of its decision and disclosed that it “could no longer stand behind” the annual financial statements it prepared for Trump. The firm had previously compiled financial statements based on the information Trump and employees of his company had provided.

WASHINGTON, DC – OCTOBER 26: Republican presidential nominee Donald Trump (C) and his family (L-R) son Donald Trump Jr, son Eric Trump, wife Melania Trump, and daughters Tiffany Trump and Ivanka Trump cut the ribbon at the new Trump International Hotel October 26, 2016, in Washington, DC.  (Photo by Chip Somodevilla/Getty Images)

The letter instructed the Trump Organization to essentially retract the documents, known as statements of financial condition, from 2011 to 2020. In the letter, Mazars noted that the firm had not “as a whole” found material discrepancies between the information the Trump Organization provided and the actual value of Trump’s assets. But given what it called “the totality of circumstances,” the letter directed the Trump Organization to notify anyone who received the statements that they should no longer rely on them.

The statements, which Trump used to secure loans, are at the center of the two law enforcement investigations into the former president and his company. The Manhattan District Attorney’s office and the office of New York State Attorney General Letitia James have been investigating whether Trump used the statements to defraud his lenders into providing him the best possible loan terms.

The Mazars bombshell revelation came from new court documents filed by Ms. James’s office, which is seeking to question Trump and two of his adult children under oath as part of her investigation. Monday’s new filing marks her latest attempt to question Trump as well as Donald Trump Jr. and Ivanka Trump, and included a copy of the Mazars letter, signed by the accounting firm’s general counsel.

Because Ms. James’s investigation is civil, she cannot file criminal charges. But she could sue Trump and his company to seek financial penalties and could try to shut down certain aspects of Trump’s business in New York. In a statement, Mazars said that “under our standards of professional ethics, we cannot comment on any client services or relationships.” Another disclaimer notes that Mazars did “not express an opinion or provide any assurance about” the statements, a common caveat in statements of financial condition. The firm also disclosed that, while compiling the information for Trump, it had “become aware of departures from accounting principles generally accepted in the United States of America.”

Read the full report at The New York Times.

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