The former president’s financial statements are at the center of a possible tax evasion investigation by the New York prosecutor.
Former Republican President Donald Trump’s accounting firm has let go of its longtime client, saying financial statements it provided for nearly a decade were unreliable, leaked court documents show. Monday February 14.
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Last week, Mazars Group informed the Trump Organization in a letter that it would no longer work for the company, which is under investigation for possible tax evasion. The document was presented to the court by State’s Attorney Letitia James, who asked a judge to compel Donald Trump to comply with invitations to testify as part of the investigation. Letitia James announced last month that her team had uncovered evidence of fraud, including fraudulent asset valuation.
According to Mazars, the prosecutor’s findings led her to consider Trump’s accounting from the year ending June 30, 2011 to that ending June 30, 2020. “should no longer be deemed reliable”. The firm added that its own investigation and “information received from internal and external sources” also weighed in his choice. “While we have not concluded that the various balance sheets, taken together, contained any material irregularities, given the circumstances, we believe our advice to no longer rely on these financial records is warranted”, indicates the letter. Partly because of this decision, Mazars “no longer able to supply new product to the Trump Organization”we read again.
“Disappointment” of the Trump Organization
These financial statements are at the center of Letitia James’ investigation, and another, criminal, led by the Manhattan prosecutor. The Trump Organization is suspected of overstating the value of certain properties when applying for loans from banks and undervaluing those same properties to the taxman in order to pay less tax. Last July, the Trump Organization and its trusted accountant, Allen Weisselberg, pleaded not guilty in a New York court to 15 counts of fraud and tax evasion.
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The Manhattan district attorney’s office received multi-year tax returns from Mazars in January after a legal battle that went all the way to the Supreme Court. The Trump Organization has expressed its “disappointment” after the decision of the Mazars group, in a press release Monday evening. But the letter from the accounting firm proves, according to her, that “the work of Mazars has been carried out in accordance with all applicable accounting rules and principles” and that these financial statements “contain no significant anomaly”. The investigations carried out in New York are thus “useless”says the company of Donald Trump.
For Donald Trump, the two investigations are motivated by political objectives. But these legal troubles could complicate a possible second race for the White House. The 75-year-old billionaire leaves doubts about his intention to run again, or not, for the Republican nomination.