Well-known lawyer of the District of Columbia George Conway called the decision of the accounting firm Mazars to part with the Trump Organization “catastrophic” for the company of the former president.
Never trumper, who is married to former Trump campaign manager Kellyanne Conway, says the development effectively means that the firm that handled Trump’s tax returns for a decade is now part of the “district attorney’s team,” that is, the district attorney’s team, not their current side. -former client.
Of particular interest to the legal community is a line in the firm’s letter released in court Monday saying there is a “conflict of interest that cannot be waived” with the Trump organization.
That wording seems to suggest that Trump’s accounting firm and company could be at a legal disadvantage as New York Attorney General Letitia James continues her investigation into alleged financial fraud.
“According to the letter, they have a conflict of interest with him, which means, as I interpreted in these circumstances, that they’re basically playing for Team AG and Team DA, not Team Trump, and they’re going to point fingers at the Trump Organization,” Conway told CNN.
Lawyer George Conway said the decision by the accounting firm Mazars to leave the Trump organization and the statement that its financial records could not be relied upon caused “all possible problems with collateral for the Trump organization.”
He said it raised “all possible related questions for the Trump Organization,” including what promises it made in writing for lending, as was done at Deutsche Bank.
Conway said this could include “debt covenants”, under which the borrower commits to continue to provide reliable financial statements. “And now he can’t do that. They’re all gone. All those financial reports are worth nothing to him,” Conway said.
Forbes reported during the 2020 campaign that Trump would have a loan maturity of $900 million if he won a re-election.
Conway also repeatedly tweeted about the episode after the news broke on Monday.
“For any business (including private) that has outside funding or investors, getting your financial statements (not to mention 10 years ago!) Your accountants are almost the most disastrous thing that can happen to him. than perhaps an accusation.
New York Rep. Caroline Maloney (DN.Y.), whose commission subpoenaed Mazars for documents in 2019 and that same year brought in Trump’s former lawyer Michael Cohen to testify about allegedly “inflated” asset valuations, criticized the development in a statement.
Conway, the husband of Trump’s former campaign manager and presidential adviser Kellyanne Conway, said the letter meant the firm was “basically playing for Team AG,” referring to prosecutors.
Conway provided his own translation of the letter, saying it meant the firm “won’t go to jail because of you.”
Conway said the letter signals that Trump is facing many difficulties.
At the bottom of the letter it may be indicated that the firm has prepared more than 525,000 documents.
Mazar’s letter is further confirmation of what has long been suspected: former President Trump’s claims of shady financial transactions simply cannot be trusted,” she said. “Mr. Trump’s own accounting firm’s decision to fire him as a client and disavow his decade-long financial statements underscores the urgency of the oversight committee’s ongoing investigations into Trump’s conflict of interest, the lease of his D.C. hotel and the rewards he received at the time. in the performance of official duties,” the chairwoman of the Oversight Committee added.
Former U.S. Attorney Harry Litman also pointed to the wording of an “imminent conflict” between the firm and Trump.
“That means they have information that violates their duty of privacy and loyalty to it,” he told CNN on Tuesday. “This is clearly information about false statements on his part. Here’s what they’re saying: You gave us false information. So what came out was a lie, but don’t blame us, and yes, we may have to cooperate now,” he said.
Conway also pointed online to the information at the very bottom of Mazar’s letter to the Trump organization.
It contains bates’ number, which is often found in court documents and law firm documents. The number — MARAS-NYAG-00525838 — “suggests that accountants have submitted at least 525,838 pages of material to the prosecutor’s office,” he wrote.
Trump’s longtime accounting firm told his company that its financial statements for the decade “can no longer be relied upon” and claims it now has a “conflict of interest” with the company.
The firm’s letter cites in part its own investigation, which states that while there are “generally significant discrepancies” in the documents, they “advise” not to “rely” on them anymore.
Included in the letter was the so-called Bates number, which read as 00525838, meaning Mazar could have given prosecutors at least 525,838 files.
Joyce Vance, a former U.S. attorney for the Northern District of Alabama, explained, “It’s a Bates stamp — when documents are handed over in court, each is assigned a sequence number to protect the integrity of the proceedings. So, Mazar turned at least so many pages of documents.
New York AG Letitia James, who cited the company’s financial health reports in her investigation into the Trump Organization, included the letter in Monday’s filing.
The recall marks a stunning departure for the firm, which for years has been the center of lawsuits over Trump’s financial information, including a lawsuit that has reached the Supreme Court.
In addition to that, the firm noted that Donald and Melania Trump’s reports are due tuesday and that they face a $10,000 fine per report if they miss the deadline.
“We cannot provide any new working product for the Trump Organization,” the firm wrote in a Feb. 9 letter to the company’s chief legal officer, Alan Garten.
The letter of termination of long-term financial relations was published amid an investigation in which AG is already accusing the company of using “fraudulent or misleading asset valuations to obtain a variety of economic benefits.”
Former President Donald Trump’s accounting firm, Mazars, says the company’s 2001-2010 financial statements should not be “relied upon.”
He tells the company that its financial health reports, which the Trump organization has provided to both the media and creditors in the past, can no longer be relied upon.
Lawyers for the AG office have submitted the letter to the court as they seek to compel Trump, the firm and members of the Trump family to comply with subpoena requirements to obtain documents and testimony.
“We are writing to report that donald J.’s financial statements have been reported. Trump for the years ending June 30, 2011 – June 30, 2020, can no longer be relied upon, and you must inform all their recipients who currently rely on one or more of those documents on which they cannot be relied upon,” Mazars said in a letter dated February 9, 2022.
“We have reached this conclusion based in part on the findings made by the New York Attorney General on January 18, 2022, our own investigation, and information obtained from internal and external sources. While we have not concluded that the various financial statements as a whole contain material discrepancies based on the totality of the circumstances, we believe that our advice to you no longer to rely on these financial statements is appropriate,” the letter said.
James published a letter from Mazar to the Trump organization.
Included in the letter was the so-called Bates number, which read as 00525838, meaning Mazars could have transferred at least 525,838 files to prosecutors.
Happy Valentine’s Day: The letter says the company must file refund information on Tuesday to avoid a $10,000 fine.
James’ office cited estimates on the financial statements of Trump’s property, such as Seven Springs in New York.
“As we stated in the financial health reports, Mazars performed its work in accordance with professional standards. His subsequent review of these working documents confirms this,” the company wrote.
“Partly because of our decision regarding financial reporting, as well as a set of circumstances, we have also reached a point where there is a conflict of interest with the Trump organization that cannot be abandoned,” the firm continued. “As a result, we cannot provide the Trump organization with any new working product,” the letter said.
New York Attorney General Letitia James accuses Trump of using “fraudulent” asset valuations to obtain benefits
In a previous filing, Trump was accused of claiming that his Manhattan penthouse had an area of 30,000 square feet, when in fact it was only 11,000 square feet.
It wasn’t immediately clear what the firm was referring to when it talked about the conflict of interest.
The Trump organization did not respond specifically to a question about whether the accounting firm concluded it might find itself in legal conflict with its former client because of past financial health reports that have become a key area of James’ investigation.
However, a Trump Organization spokesperson told DailyMail.com: “While we are disappointed that Mazars has decided to part ways, their letter of February 9, 2022 confirms that after conducting a follow-up review of all previous financial health reports, Mazars’ work has been done. in accordance with all applicable accounting standards and principles, and that such statements of financial condition do not contain any material discrepancies. This confirmation makes the investigations of the district attorney and the prosecutor controversial.”
Trump has repeatedly denied wrongdoing and called the investigation a “witch hunt.”
The letter also mentions the son of Trump’s former bodyguard, Matthew Kalamari, whom federal prosecutors said last year they had no intention of bringing charges.
It says only a “limited number” of declarations have yet to be filed, including “Declarations by Donald J. Simpson.” Trump and Melania Trump.” The deadline is Feb. 15. “We believe that the only information left to complete these declarations is information about Matt Calimari Jr.’s apartment,” and that the declaration can be completed once it is submitted.
In September, NBC News reported that Matthew Kalamari Jr., who also works for the company, had been summoned to testify before a grand jury.
Trump’s lawyers are fighting James’ demand to testify.