NEW YORK – An accounting firm that prepared the annual financial report of former President Donald Trump, says that the documents used to obtain favorable loans and improve the image of Trump as a wealthy businessman, “no longer hope” after Attorney General New -York stated that they regularly misrepresented asset values.

In a letter to a lawyer from the Trump Organization on February 9, Mazars USA LLP recommended that the company inform everyone who received the documents not to use them when assessing the financial condition of the company and the ex-president. The firm has also said it is severing ties with Trump, its most prominent client.

Mazars’ letter, released in a court statement Monday, came weeks after New York Attorney General Leticia James said her civil investigation had found evidence that Trump and his company used “deceptive or deceptive” assessments of their sticks to golf, skyscrapers and other property to get loans and tax breaks.

“While we have not concluded that the various financial statements as a whole contain significant discrepancies based on a combination of circumstances, we believe that our advice to you to no longer rely on these financial statements is appropriate,” said Mazars General Counsel William J. Kelly wrote to his Trump Organization colleague Alan Garten.

Kelly told Garten that Mazars could no longer work with Trump because of a conflict of interest, and urged him to find another taxpayer. Kelly said several tax returns related to Trump have yet to be finalized, including the former president and first lady.

Trump’s organization said in a statement that it was “disappointed that Mazars decided to leave,” but took Kelly’s letter as positive because the accounting firm found no significant discrepancies in Trump’s financial statements.

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The letter “confirms that after the next audit of all previous financial statements, Mazars’ work was performed in accordance with all applicable accounting standards and principles and that such financial statements do not contain any material discrepancies,” the Trump Organization said. said. “This confirmation actually makes the DA and AG investigation controversial.”

Kelly said Mazars was doing its job on Trump’s financial statements “according to professional standards,” but that she could no longer stick to documents in light of James ’findings and her own investigation. Kelly said Mazars’ findings relate to Trump’s 2011-2020 financial statements. Another firm was working on Trump’s financial report for 2021.

James’ office has included a copy of Kelly’s letter in court documents when she seeks execution of a summons to have Trump and his two older children, Donald Jr. and Ivanka, testify under oath. State Court Judge Arthur Engaron is due to hear arguments Thursday in a subpoena dispute.

James, a Democrat, said Monday that given the evidence, “there should be no doubt that this is a legitimate investigation and that we have a legitimate reason” to interrogate Trump, a Republican, and his children, both of whom were leaders of the Trump Organization. .

Trump’s attorneys say any evidence they give could be used against them in a parallel criminal investigation overseen by the Manhattan District Attorney’s Office – an investigation that led to allegations of tax fraud last year against the Trump Organization and Allen Weiselberg, its many chapter. officer.

Trump handed over to the banks his Statement of Financial Position – an annual survey of his holdings – to secure hundreds of millions of dollars in loans for properties such as an office building on Wall Street and a golf course in Florida, as well as financial magazines to justify it. place among the world’s billionaires.

In a court statement last month, James’ office detailed several cases in which Trump misrepresented the value of assets in financial statements submitted to banks.

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Deutsche Bank has unequivocally accepted Trump’s financial statements as part of a $ 300 million loan deal for three of its facilities and in internal memoranda stressed Trump’s financial strength as a factor for his lending, James’ office said.

Another bank said it received a financial report in 2014 stating that Trump’s capital is $ 5.8 billion and liquidity is $ 302 million. A bank employee involved in the deal told James’ office that if he had known about the distortions in Trump’s financial statement, he would have stopped the deal.

James’ office said the investigation began after Trump’s former personal lawyer Michael Cohen told Congress in 2019 that Trump had a history of asset distortions to get favorable loan terms and tax breaks.

Cohen handed over copies of Trump’s three financial reports to the House Committee on Oversight and Reform. Cohen said Trump had given statements to Deutsche Bank to inquire about a loan to buy NFL Buffalo Bills accounts, and to Forbes magazine to justify his claim to a place on the list of the richest people in the world.

Cohen has served a term in federal prison after pleading guilty in 2018 to tax crimes, congressional lies and campaign finance irregularities, some of which included his role in arranging payments to two women to keep them from talking about alleged cases with Trump.

Trump’s lawyers have shown Cohen as revenge against Trump and said in a recent court statement that he “trusts that” James’ office has invested “any legal things” in his testimony.

On Monday, James ‘office responded that it not only relies on Cohen’s testimony, but also that his testimony is “corroborated by the evidence obtained to date and Mazars’ statement that these statements should not be relied upon.”

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