Mazars USA may send a letter to Trump Organization. This could increase the legal troubles of former President Donald Trump and his families.
Mazars’s letter, addressed to Trump Organization chief legal officer Alan Garten, notes that Trump’s financial filings over the past decade are no longer reliable. In response to these revelations, the company states that it will no long do business with Trump Organization or Trump himself, except for his tax filings.
“We write to advise that the 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,” the letter stated.
“This is a big deal,” a tweetCitizens for Responsibility and Ethics in Washington (CREW), a non-profit watchdog group, said. “The Trump Organization’s longtime accounting firm Mazars said it no longer wants Trump’s business, as it doesn’t trust the financial documents the Trump Org has given them.”
“It looks like the Trump Organization is in a lot of trouble,” CREW added.
The Mazars letter was part of a trove of documents submitted in a legal filing on MondayLetitia James, New York Attorney General, is conducting an investigation into Trump and his company’s fraud. James’s inquiry is examining whether Trump and officials within the Trump Organization (including Trump’s children) inflated the company’s net worth in order to secure huge loans from several banks.
According to reporting by The New York Times, Mazars’s acknowledgment that Trump’s financial statements were unreliable is “a potential blow to the Trump Organization as it attempts to fend off the long-running scrutiny of its finances.”
Mazars reportedly sought to begin transitioning Trump out as a client last spring, but the letter provides the starkest evidence yet that the company had deep concerns over the former president’s current legal troubles. However, several legal experts on social media have suggested that Mazars could also face repercussions if the company had prior knowledge of Trump’s alleged financial misdeeds.
“This is a very carefully drafted letter. Mazars may be concerned about its exposure [in my opinion],” said Richard Signorelli, a former United States Attorney for Southern District of New York.
It’s possible, however, that the company is cooperating with James’s investigation or another investigation looking into Trump’s finances by the Manhattan District Attorney’s office. Signorelli went on to add that Mazars, in “firing” Trump as a client, “may be turning state’s evidence” on the Trump Organization.
