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Topline

Former President Donald Trump’s longtime accounting firm dropped him as a client and advised the Trump Organization that it should not rely on a decade of financial statements the firm prepared for him. , while investigations into possible financial fraud revolve around the ex-president.

Highlights

A Mazars USA company representative said in a Feb. 9 letter to the Trump Organization that financial statements prepared for Trump between 2011 and 2020 “should no longer be relied upon,” as the company tries to avoid criminal investigations. and civilians.

Mazars said he did not conclude that the statements contained “material discrepancies”, but that due to the “totality of the circumstances”, they should not be relied upon.

The company specifically said the New York Attorney General’s ongoing civil investigation into whether Trump falsely overstated his assets to secure loans was one reason to doubt the validity of the statements.

A spokesperson for the Trump Organization said Forbes that while the company was “disappointed that Mazars chose to separate”, it was confident that the company’s work had been performed within “all applicable accounting standards”.

crucial quote

“In part as a result of our decision regarding the financial statements, as well as the totality of the circumstances, we have also reached the point where there is an irrevocable conflict of interest with the Trump Organizations,” Mazars said in the letter. . “As a result, we are unable to provide any new work product to the Trump Organization.”

Key Context

The office of New York Attorney General Letitia James (D) revealed the letter in a court filing on Monday, as it seeks to compel Trump and his adult children to testify in his civil investigation, which seeks to determine whether Trump defrauded its lenders. The attorney general said in court documents filed last month that Trump may have overstated the value of properties like his Trump Tower penthouse apartment and his golf club in Westchester County, New York, among other properties. The Manhattan District Attorney’s Office is separately conducting a criminal investigation into the case and has convened a grand jury to weigh potential charges. (Full disclosure: Forbes testified before the grand jury. Learn more here.)

Surprising fact

Trump is also under investigation for possibly undervaluing some of his properties to reduce his tax bill. The Westchester County Attorney’s Office is reportedly investigating whether he undervalued his Westchester Golf Club for tax purposes, which is the same property James claims Trump overvalued when trying to secure loans .

To monitor

The Trump Organization and its former CEO, Allen Weisselberg, are set to go on trial this fall for allegedly running a 15-year scheme to funnel untaxed cash to corporate executives.

Further reading

Forbes Testified Before Trump’s Grand Jury Yesterday – Here’s Why We Fought Their Subpoena (Forbes)

Trump’s golf club is now under criminal investigation – as legal troubles mount for the former president (Forbes)

Trump Organization reportedly indicted by New York grand jury (Forbes)