This news seems significant (WaPo):
Former president Donald Trump’s longtime accounting firm informed his company last week that a decade’s worth of Trump’s financial statements “should no longer be relied upon” and suggested that any recipient of the documents be alerted, according to a copy of the letter filed in New York court filings.
In the letter, Mazars executive William J. Kelly voiced new concerns about the statements, which the firm helped Trump prepare and which have come under scrutiny recently by New York Attorney General Letitia James (D). James has alleged in civil filings that Trump used the statements to inflate the value of his properties and misstated his personal worth in representations to lenders.
Kelly said Mazars reconsidered its work on the documents following questions raised by James’s office in a January filing.
“We have come to this conclusion based, in part, upon the filings made by the New York Attorney General on January 18, 2022, our own investigation, and information received from internal and external sources,” Kelly wrote in the Wednesday letter, addressed to Trump Organization attorney Alan Garten. “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 is appropriate.”
I’m neither an accountant nor an attorney, but that sure sounds like something a firm would say if it doesn’t want to be implicated in a giant scandal that’s about to explode messily all over everything in its client’s radius. There are more details in the linked article, including mention of unresolved tax issues connected to an apartment occupied by the son of a Trump Org COO who shares a name with a popular squid appetizer.
The apartment in question is relevant to an ongoing tax fraud investigation, which is revealing that these fraudsters paid each other in property and loot to avoid taxation, which understandably made Mazars flinchy. The Trump Org responded to Mazars’ announcement with this delusional statement:
“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.”
LOL! You wish, lumpy! I’ve got to think the revelation that 10 years of financial statements are unreliable might break some lending contract terms, perhaps even leading to a demand for immediate repayment. Time to milk the marks harder than ever.