Consultants questioned the integrity of financial records from hundreds of businesses owned by the former president on Feb. 9.
Mazars USA declared Trump Organization financial statements from the past decade cannot be “relied on.”
“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,” Mazars general counsel William Kelly said in a statement shared on Twitter.
The New York City-headquartered accounting firm also backed Democrat New York Attorney General Letitia James’s view that these financial statements cannot be relied on.
“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,” Kelly said.
“We have come to this conclusion based, in part, upon the findings made by the New York attorney general on Jan. 18, 2022, our own investigation, and information received from internal and external sources,” he added.
The firm will also no longer advise the Trump Organization on future financial matters.
“We have also reached the point such that there is a non-waivable conflict of interest with the Trump Organization. As a result, we are not able to provide any new work product to the Trump Organization,” Kelly said.
AG James’ office has submitted a court filing Re Trump case that includes a letter from his company’s accounting firm saying nearly a decade worth of financial statements can no longer be relied upon. pic.twitter.com/sDUcDF1BEd
— Maggie Haberman (@maggieNYT) February 14, 2022
These remarks came in light of James’s inquiry into whether the Trump organization misrepresented asset values to improve its bottom line. If the Democrat can substantiate this theory it could constitute a “fraudulent or misleading” practice.
For now, the business could experience greater challenges in borrowing money due to delays in arranging new financial statements.
A Trump Organization representative accepted Mazars’s resignation, and believes it will help settle the matter with James.
“While we are disappointed that Mazars has chosen to part ways, their Feb. 9, 2022 letter confirms that after conducting a subsequent review of all prior statements of financial condition, Mazars’s 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,” the representative said according to NBC News.
“This confirmation effectively renders the investigations by the district attorney and attorney general moot,” the representative added.