Donald Trump and the Chief Financial Officer of the Trump Organization, Allen Weisselberg, who was indicted (File)
Donald Trump’s accountants have cut ties with him, saying his financial returns are not reliable.
Mazars USA wrote the Trump Organization on February 9 that Trump’s statements covering June 2011 to June 2020 “should no longer be replied 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”.
Saying it would no longer “provide any new work product to the Trump Organization”, Mazars added, “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 our advice to no longer rely upon those financial statements is appropriate.”
New York State Attorney Letitia James and the Manhattan District Attorney’s office are each investigating Trump, the Trump Organization, and its officers for possible fraud.
James cited the letter in an application to a New York State judge to order the Trump Organization, Donald Trump Jr., Ivanka Trump and others to comply with subpoenas for documents and testimony.
Judge Arthur Engoron will hear arguments on Thursday.
Last month James set out the possible fraud, in response to Trump’s effort to prevent questioning of him or his children in a civil investigation. The filing include documents from Mazars.
The Attorney General detailed misleading statements about the value of six Trump properties, including golf resorts in Scotland and Westchester County, New York and skyscrapers such as Trump Tower and 40 Wall Street in Manhattan.
The value of the properties was inflated to lenders for better rates for loans, to insurers for higher claims for losses, and to the Internal Revenue Service for more extensive tax deductions.
See also New York Attorney General: Trump Organization’s “Fraudulent or Misleading” Practices
James said Monday that “there should be no doubt that this is a lawful investigation and that we have legitimate reason” to question Trump, Donald Trump Jr., and Ivanka Trump.
Allen Weisselberg, the Trump Organization’s Chief Financial Officer, was indicted last July on charges of grand larceny and tax fraud over avoidance of $900,000 of taxes on $1.76 million in unreported perquisites and improper receipt of $133,000 in state and local tax refunds. He faces more than 10 years in prison if convicted.
The Trump Organization was indicted at the same time over a 15-year tax evasion scheme.
