Mazars USA, a longtime accounting firm for the Trump Organization, is reportedly no longer willing to vouch for the financial statements of the organization. The firm says it left the project because of harassment from Donald Trump and the threat of ruination or indictment. According to Mazars, the organization’s financial statements do not reflect accurate amounts and are not reliable. However, the firm said it was unable to provide an accurate figure for the amount of money Trump allegedly spent on his businesses.
After two decades of work for the Trump Organization, Mazars USA has withdrawn as a client. In a letter to the organization’s board, Mazars said it is no longer willing to rely on the financial statements because they contain material discrepancies. In the letter, the firm said that these financial statements should not be relied on due to the “totality of circumstances.”
The firm has a duty to protect the interests of its clients. In its letter to the Trump Organization’s chief legal officer Alan Garten, Mazars states that it has no longer chosen to represent the Trump Organization. The firm had prepared financial statements and income tax returns for the Trump Organization in order to obtain loans. After the letter was sent to Mr. Garten, Mazars informed him that the firm had decided to drop the organization, citing the findings of the attorney general’s investigation.
Mazars’ disavowals of the Trump Organization’s financial statements is a rare step for a private company’s accounting firm. But it marks a turning point for the firm’s reputation in New York. Now the question becomes how much Mazars will cooperate with prosecutors while fending off the potential criminal charges against the firm. The answer to that question will likely depend on whether Mazars decides to cooperate or not.
In New York, the state attorney general’s office is investigating the Trump Organization’s financial statements. The investigation concerns possible misuse of property values to obtain loans, lower taxes and other financial benefits. The Trump Organization’s financial statements contain a number of discrepancies that Mazars noted in its review. As such, the investigations may be moot. Meanwhile, a lawsuit filed by the president’s lawyer against Mazars’ accounting firm, James, may be on the way.
In addition to its work for the Trump Organization, Mazars has also cast doubt on the Trump family’s finances. The firm served as the sole accountant of record for the Trump Organization for a decade. While the Trump Organization has always defended its financial statements, Mazars’ letter says the firm is not liable for the false statements. While Mazars is still working on a comprehensive investigation into the Trump Organization, it is unclear whether Mazars will charge the president with any criminal offenses.
While the investigation into the Trump Organization’s tax avoidance scheme is a civil case, it may lead to criminal charges. In that case, Ms. James can sue both Mr. Trump and Mazars. Mazars is currently cooperating with the district attorney’s investigation, and a Mazars accountant testified to a grand jury about Mr. Trump’s tax-evasion and other illegal activities.