Donald Trump's accountants cut ties with former president over financial statements

Law enforcement officials in New York who are investigating the financial affairs of the former US president, have provided documents that show his long-term accounting firm has cut ties with him over the accuracy of the information provided to produce the group’s annual financial statements.
A letter sent by accounting firm Mazars urged Donald Trump to tell lenders the financial statements issued between 2011 and 2020 are no longer deemed reliable. The letter was made public through a filing from the office of the New York attorney general, Letitia James, as part of their civil investigation into whether Trump inaccurately represented his financial circumstances when either seeking loans or limiting his tax liability.
According to New York Times, the Manhattan district attorney’s office has zeroed in on the financial documents in its separate criminal fraud investigation into the company’s financial practices.
Mazars in the letter that its decision to no longer work with the Trump Organisation and declare the financial statements invalid was based on a January filing by Ms James, its own investigation and information from internal and external sources.
The letter states: “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 continues: “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 as appropriate.”
Importantly the company goes on to say that it had reached a point where “there is a non-waivable conflict of interest with the Trump Organisation” and therefore it could no longer do any new work for it.
Mazar’s resignation means that Trump will have to find an alternative to review of his personal financial interests in any future presentation to a bank or insurance company, as well as having to find new auditors. It is also likely that the banks will undertake their own review given the new information.
A Trump Organisation spokesperson said: “While we are disappointed that Mazars has chosen to part ways, their February 9, 2022 letter confirms that after conducting a subsequent review of all prior statements of financial condition, Mazars’ 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.
“This confirmation effectively renders the investigations by the DA and AG moot.”
Ms James’ office is seeking to question Mr Trump and two of his adult children under oath as part of her investigation. However because her investigation is civil, she cannot file criminal charges.
She will be able to sue Mr Trump and his company to seek financial penalties, and could try to shut down certain aspects of his business in New York, the group consisting of some 500 entities of which Trump is the sole or principal owner.
Certainly the news that Donald Trump’s accountants have cut ties with the former president over the validity of the information provided to produce their financial statements, will make others wary to work for the organisation and him personally.

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