Former President Donald Trump’s longtime accounting firm told his company that its decade-long financial records “can no longer be relied upon” and claims it now has a “conflict of interest” with the company.
The firm’s letter cited in part its own investigation, which said that while there were no “generally significant discrepancies” in the documents, they “advised” no longer to “rely” on them.
New York AG Letitia James, who cited the company’s financial statements in her investigation into the Trump Organization, included the letter in Monday’s filing.
The recall marks a stunning departure for the firm, which has been the focus of lawsuits over Trump’s financial information for years, including a lawsuit that has reached the Supreme Court.
In addition to this, the firm noted that Donald and Melania Trump’s reports are due on Tuesday, and that they face a $10,000 fine per report if they fail to meet the deadline.
“We are unable to deliver 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 to end a long-term financial relationship was released amid an investigation in which AG is already accusing the company of using “fraudulent or misleading asset valuations to generate multiple 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 statements, which the Trump Organization has provided to both media and creditors in the past, can no longer be relied upon.
AG’s office lawyers have submitted the letter to the court as they seek to force Trump, the firm, and members of the Trump family to comply with the subpoena to obtain documents and testimony.
“We are writing to advise that Donald J. Trump’s financial statements for the years ended June 30, 2011 – June 30, 2020 can no longer be relied upon and you must inform all recipients who are currently reliant on them. one or more of those documents that cannot be relied upon,” Mazars said in a letter dated February 9, 2022.
“We reached this conclusion based in part on 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 to no longer rely on these financial statements is appropriate,” the letter reads.
New York Attorney General Letitia James accuses Trump of using ‘fraudulent’ asset valuations to secure benefits
James published Mazar’s letter to the Trump organization.
Happy Valentine’s Day: The letter says the company must file return information on Tuesday to avoid a $10,000 fine.
James’s office cited estimates from the financial statements of Trump properties such as Seven Springs in New York.
“As we have indicated in our financial statements, Mazars has carried out its work in accordance with professional standards. His subsequent review of these working papers confirms this,” the company wrote.
“Due in part to our financial reporting decision, as well as the combination of circumstances, we have also reached a point where there is a conflict of interest with the Trump Organization that cannot be waived,” the firm continued. “As a result, we are unable to provide any new work product to the Trump Organization,” the letter said.
In a previous filing, Trump was accused of claiming his Manhattan penthouse was 30,000 square feet when it was actually only 11,000.
It was not immediately clear what the firm had in mind when it spoke of a conflict of interest.
The Trump Organization did not specifically answer a question about whether the accounting firm concluded it could be in legal conflict with its former client over past financial statements, which became a key area of James’s investigation.
However, a spokesperson for the Trump Organization told DailyMail.com: “While we are disappointed that the Mazars have decided to part ways, their February 9, 2022 letter confirms that, following a follow-up review of all previous financial reports, the Mazars job was done. in accordance with all applicable accounting standards and principles, and that such statements of financial position do not contain any material discrepancies. This confirmation makes the D.A.’s and Attorney’s investigations moot.”
Trump has repeatedly denied wrongdoing and called the investigation a “witch hunt.”
The letter also mentions the son of former Trump bodyguard Matthew Calamari, who was told by federal prosecutors last year that they were not going to file charges.
It says only a “limited number” of declarations have yet to be filed, including “declarations from Donald J. Trump and Melania Trump.” The deadline is February 15th. “We believe that the only information left to complete these declarations is Matt Calimari Jr.’s apartment information,” and that the declaration can be completed once it has been submitted.
In September, NBC News reported that Matthew Calamari Jr., who also works for the company, was called to testify before a grand jury.
Trump’s lawyers resist James’ demand to testify.