Trump Organization's accounting firm says 10 years of financial statements are unreliable - CNNPolitics
S E E D E D C O N T E N T
New York (CNN)Former President Donald Trump's long-time accounting firm informed the Trump Organization last week that it should no longer rely on nearly 10 years' worth of financial statements and that they would no longer be their accountants, citing a conflict of interest.
"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," Mazars wrote in a letter to the Trump Organization chief legal officer, advising them to no longer rely on financial statements ending June 2011 through June 2020. "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." The company also advised the Trump Organization to inform any recipients of the statements, such as lenders or insurers, to not rely on the statements. A long list of investigations and lawsuits involving Donald Trump Monday, Mazars said it would no longer act as Trump's accountant, citing a "non-waivable conflict of interest." The accounting firm said the only work not completed was the filing of Trump and Melania Trump's tax returns. It says they are still seeking information about an apartment for Matthew Calamari Jr., the company's head of security, which they have sought for months but have not received. Trump's main accountant, Donald Bender, testified before the grand jury investigating the Trump Organization last year, sources told CNN. Read More The letter was included in a court filing by the New York attorney general's office, which has been trying to enforce a subpoena for documents from Trump and seek his testimony as well as that of Donald Trump Jr., and Ivanka Trump. A court hearing is set for Thursday. "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," a Trump Organization spokesperson said Monday. "This confirmation effectively renders the investigations by the DA and AG moot." Mazars didn't respond to CNN's requests for comment. Some lawyers say it's likely Mazars issued the warning since they had previously signed off on the financial statements, and with recent allegations that they are inaccurate, they would want to protect themselves and sound an alarm that they shouldn't be relied on anymore. The New York attorney general and Manhattan district attorney's office have been investigating the accuracy of Trump's financial statements to determine whether any insurers, lenders or others were misled. Trump has previously said in depositions in civil investigations that he would give his opinion about the values of certain properties and it was "predominantly" Trump Organization's chief financial officer Allen Weisselberg who decided the final number. Mazars compiled the statements and included a two-page introduction that stated Trump was responsible for valuations, but they noted that in many ways they did not comply with US accounting rules. What you need to know about Trump's weekend of January 6 whitewashing and election lies In a lengthy court filing last month, the New York attorney general's office alleged it has found "significant" evidence "indicating that the Trump Organization used fraudulent or misleading asset valuations to obtain a host of economic benefits, including loans, insurance coverage, and tax deductions." On the financial statements, they alleged, there were numerous "misleading statements and omissions." Citing the Mazars letter, lawyers for the New York attorney general's office wrote on Monday, "This development further reinforces what OAG's previous submissions already showed: The Court should order Respondents' compliance with OAG's document and testimonial subpoenas." Lawyers working for New York Attorney General Letitia James also pushed back on Trump's argument that she is trying to "end run" the grand jury process by seeking their testimony as part of the city investigation while there is an ongoing criminal investigation. Trump's team has argued that James, whose office announced it was teaming up with the Manhattan district attorney's office on the criminal case, was politically motivated. In Monday's filing, James' office said two attorneys were designated to work with the district attorney, but said they "report to, and operate at, the direction" of the district attorney, Alvin Bragg. This story has been updated with additional details.
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Our prisons are full of fraudsters who did way less...
What was actually done? Was there a loan that was fraudulently obtained and not paid. It seems that this is all about values, who is claiming a financial loss?
Lying to and submitting false documents to banks and with tax returns is a fraud and a crime. Our federal prisons are full of criminals convicted of similar kinds of financial frauds...
So prove that happened.
Well, hallelujah, someone actually recognizes that a conviction is necessary!!!!
WOW!
I guess flapping gums is a poor, poor substitute for actual proof.
Then why are Trump's accountants firing him?
The rest of your comment is purely diversion...
So your answer as to what I asked (refresher for you: "So prove that happened.") is a question that does absolutely zero to answer what was asked?
And you have the fucking NERVE to accuse ME of diverting?
LMMFAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
What exactly was false in these documents?
Are you saying his tax returns are fraudulent?
Give me some of these people convicted where no financial loss ever took place.
I think the lack of truthful (or otherwise) answers is very telling here.
Must be hard to find things on the internet when you have no proof.
Trump's accounting firm isn't getting away with this!
Getting away with WHAT????
That's what I want to know. They are questioning their own fucking work? Did they just take someone's word and not ask for official documentation? No due diligence? I agree with another poster. They need to change their name to FBN Accounting. (Fly By Night). I would hope that many of their clients take this a lesson and jump ship if their very own work they question. I think they know they fucked up and are hoping if they quit, they won't get bitch slapped.
Disavow 10 years of accounting by their CPSs.
What don't you understand. It's easy if you try!
They are questioning the reliability of the information supplied to them by their client, Trump.
You're right about one thing. No one should ever take Trump's word.
Disavow their OWN work.
Interesting.
The financials I have seen compiled by CPA firms ALWAYS contain a disclaimer about the accuracy of the statements.
An accounting firm can't disavow their own work, it doesn't work like that. If they signed it with out a disclaimer they own it.
And they ALWAYS have to be examined/certified by auditors in the business I am in. Hell it takes our auditors here about 4-6 weeks to compile all the documentation and necessary information to tell us if everything looks good. And we only do $12 Million a year.
Exactly, why in the hell would you ever pay a CPA for them to say, Nah those aren't accurate you're on your own.
The financials I have seen compiled by CPA firms ALWAYS contain a disclaimer about the accuracy of the statements.
My daughter is an accountant. I called her once and she told me she’d have to call me back because she was counting alligators. The client was an alligator farm and she was doing due diligence by visiting the site and spot verifying their claims of inventory. The same due diligence would be applicable in determining the value of multimillion dollar properties, particularly when it is as simple as verifying square footage of Trump’s skyscraper residence. When you refinance your mortgage, expect that your home will be inspected as part of the deal. This firm has handed over 50,000+ pages of documents to various investigations, now they are distancing themselves from their work. Do the math.
That is why I have trouble believing that banks would NOT look at property tax records and comp sales to determine values. It just seems weird that ANY bank would not follow standard practices--especially involving deals worth millions.
I used to work with a guy who bought a house that was way above his pay grade. I asked how he did it and he flat out admitted to me that he has access to a crooked banker. While you can’t just google “crooked banker” and find one, they do exist and if your acquaintances are seedy enough you can find them. Not sure what he traded for the service, but I do know he had very seedy acquaintances. It’s one of the reasons I left there.
Rats, ships, etc.
floaters, cesspools...
If the 'Mar-a-Lago dweller' had just stayed being the NY flim flam man, there is so much that would have never happened. And most likely even this.
The orange one with the white eyes always has to be center stage. Now he is. Lawyer up, dude. Your show is about to begin.
Certainly not news that Trump wants to hear. What, IMO the accounting firm is saying is that you gave us the information we reported what you gave us. A CYA as well.
Remember the Arthur Andersen / Enron Fiasco?
How many loans based on these financial statement will now be called?
This could become really interesting.
I'm pretty sure that the lack of reliability of Trump's financial statements goes back far more than only 10 years.
His accounting firm all had advanced degrees from Trump University.
My thoughts exactly - I doubt there ever was an accurate trumpturd financial statement.
Would 'Stormy Who' count as a Trump financial statement?
Probably, in Left-Wing Bizarro World.
And the evidence for that is?
Oh, here it is.
00000000000000000000000
Why are you, et.al. defending Trump? You know that nobody on NT has access to Trump’s records so until info is publicly disclosed no proof can be delivered.
But you ALSO know that Trump has a history of shady business practices. And you know that his own CPAs are trying to distance themselves from his practices.
Do you actually believe, given all we know about Trump, that it is more likely Trump’s records and tax returns are honest and reliable rather than dishonest and unreliable?
Believing Trump is an honest, ethical businessman (vs. what this seed suggests) contradicts decades of his practices and would be the epitome of naive.
Damn, I wish you all would get off that crap. I am not defending Trump. I am asking for proof.
I had no idea that the questions would be so darn hard to answer and cause such angst.
Sorry, not sorry.
Then claims unsupported by evidence should stop.
I trust the IRS professionals who have audited Trump. I will reserve judgment until FACTS come out.
You seem to have a penchant for telling me what I believe. You are rarely correct.
Maybe you should tell your friends on here that same exact thing.
It is extremely obvious that Trump is a shady businessman. Anyone who pays even the slightest attention knows that. So when Trump's own CPA firm distances themselves from him and state that his records for at least the past 10 years are unreliable, that strongly supports the position of those who believe Trump is a dishonest businessman.
You are challenging people who are taking the known facts about Trump as further affirmation that he is a shady businessman. Why? Do you actually think Trump is an honest businessman?
Do you really need more 'evidence' to see that reality?
Which one of my 'friends' is defending Trump?
When you have proof for what was claimed, present it.
Distinguish between a claim and an opinion. Look what G2 wrote:
That, Texan, is an opinion. G2 did not make a claim of certainty, he expressed his personal (I) opinion. I agree with him. It is quite likely that Trump has been cheating for his entire business career. That is also not a claim, that is an opinion.
Claims do not require proof. And, as I noted, Trump's records are not publicly available so we must wait. In the meantime, you, et. al. will continue to defend Trump against opinions that he is a dishonest businessman (based on facts already known to the public and importantly on the recent fact of his own (ex)CPA firm declaring his records for the past 10 years to be unreliable).
I (and others) am convinced that Trump is a dishonest businessman. Given his CPA's actions, it seems to be a losing battle to take the counter to that position and hold that Trump is an honest businessman until absolute PROOF is available.
Blindly defending the indefensible harms one's credibility.
I don't know why you insist on saying I am defending Trump.
That is a lie.
I don't know why your friend is unable to debate his own words.
When you have proof, present it. Anyone can say whatever they want, but I damn sure don't have to believe them without proof.
Because you are demanding proof on opinions that Trump has been a dishonest businessman for more than just the last 10 years.
You are implicitly taking the position that Trump was NOT a dishonest businessman more than 10 years ago.
Now, just to be certain, you do recognize that Trump's CPA firm declaring that his records are not reliable is a statement that his records are not honest business. Right? You recognize that?
And now you are telling me what my positions are.
As though you would have a fucking clue.
I told you the position that your comments imply. Read my words (note: 'implicitly').
I also asked you questions. You ran from them.
Do you think that Trump was likely an honest businessman 11 years ago (and earlier) and just turned dishonest 10 years ago?
No, you told me what my position is. You have a nasty habit of doing that. Get over it.
Done with you, so feel free to take the last words.
Pathetic. You flee probative questions and just whine (falsely) about mistreatment.
You want to debate? Stand up and do so.
The so called "bombshell" about Clinton is just a poor attempt to distract from Trumps financial crimes.
I guess to people who think like that this is possible, too.
Russia and Ukraine is just a diversion for the Biden Administration and their handling of the Southern border and inflation.
Please JR give me the list of indictments for these crimes.
Might as well ask for the moon and stars.
I doubt if he can find another accounting firm
Since Trump's tax filings are due today, he has a big problem.
he's paying melania a consulting fee for all her past life experience on how to ask for an extension...
Looks like the storytelling is getting old and stale.
Is the very best you can do is to invent things?
He already has, FBN Accounting LLC...(Fly By Night)
There are always needy firms who will do his bidding. Greed clouds judgment.
I don't know who "others" are but, insurance companies inspect their risk they don't take the clients word for it, banks appraise property for their loans as well. Was a loan obtained on a fraudulent basis and not repaid ? Shouldn't this DA be chasing murders rather than looking at balance sheets when no financial loss took place.
Haven't some of our progressive liberal friends here been claiming that NO BANK in America would lend Trump a dime?
But now the same folks willing to believe THAT are telling us that Trump defrauded the banks because they trusted his word on the values of property?
What laughable nonsense.
Is there anything they won't fall for regarding Trump?
I still don't know why this makes any difference if no loan was in default! Liberals have a hard time with math, they think Insurance Value, Appraised value, Sale Price, Income tax value and property tax value should all be same.
Different DAs do different things. Some DAs investigate/ prosecute violent crimes. Others work in financial matters
Is there a financial loss that took place?
What does your question have to do with my comment? All I did was enlighten you on how DA offices work because you didn't seem to know diddly squat about them
Thank you, but you missed the point of my comment. If this DA is as you say for financial crimes, what financial crime has taken place. There would need to be some type of a financial loss or someone defrauded of income, monies or property what is she claiming took place.
I didn't miss it because you had no point. That wasn't the issue in the thread
They have already charged Allen Weisselberg, Trump's accountant, with 15 counts of tax fraud.
That made me chuckle.
Give me the names of these two New York DA's you're talking about.
Didn't read the seed again, did you?
I know exactly what the seed is about, I am asking you to clarify your comment of:
You made the claim, just want to know who these dual DA's are.
It's still absolutely unbelievable how anyone fell for this con man and actually voted for him. A truly astounding unawareness of reality on all fronts. Electing every single thing the right says they hate, a failed Reality TV show celebrity with a Hollywood star, an East Coast Elite from New York City, an out of touch Elite that lived in a golden tower high rise with a Global financial empire of hotels and golf courses. Not a man of the people, a man proven to have cheated at everything in life, and a proven liar a thousand times over. The right elected every single thing they proclaim to hate, a man who symbolized everything they claim is against their "values".
Thank you for pressing the point of his being an East Coast Elite and a not-man-of-the-people living in his golden tower. We see it. Why doesn't everybody?
He was elected because a whole lot of people who voted for him saw him as a "savior." The elites saw an elite who would protect their interests and embellish their fortunes. The white-grievance crowd saw somebody who would keep the faith and not let muslims or brown people into the country because.... well, because they ain't 'merican. The Bible thumping crowd saw a man who would appoint conservative judges and rid the country of abortion and the percieved LGBTQ stain on their god-blessed country. So, some of the people actually got what they wanted, the rich got richer and the evangelicals got more conservative justices.
And, of course, the white grievance crowd got told to "stand by"...
As to the topic of the seed, it should be dishearteningly amusing watching more and more people and companies moving towards the off ramp of the Thumper Freeway...
And you forgot the reward the rest of conservatives feel they got which was "pissing off liberals/progressives/Democrats/lgtbq/Femi-Nazi/bi-coastal/Hollywood elites". The more upset those they already hated with a passion got, the more they cheered for the fat orange loser. It didn't matter if he was drawing boobs on a weather map with a sharpie, the pussy grabbing comment, saying McCain wasn't a war hero, mocked a disabled journalist or his paying hundreds of thousands to porn stars to keep them quiet during the campaign, all of his insanity clearly outraged most rational patriotic Americans which is what made some right wing conservative Trump supporters cheer with glee.
I think to some of his fans Trump was the Rodney Dangerfield in 'Caddyshack', the uncouth, ill-mannered billionaire who comes in and starts knocking over the elitist golf club snobbery. So to them it doesn't matter that he lies, defrauds banks, cheated on his wives, cheated on his taxes, he's still their hero who they love watching kick anyone they see as having a better education, better house, better job, better vocabulary or better life right in the nuts.
I agree wholeheartedly. It is because of the way he acts, not in spite of. Which still makes me wonder about the minds and maturity level of certain voters.
They just wanted someone who would burn down the building … that they are living in. He made a great effort but so far actual democracy is prevailing - very, very slowly.