The accounting firm Mazars USA warned that it does not trust the financial reports of former President Donald Trump between 2007 and 2020, after finding discrepancies in internal audits, reveal documents that are part of the investigation by the New York Attorney General’s Office.
In the letter signed on February 9 – to which this newspaper had access – the Mazars company wrote to Alan Garten, executive vice president and lawyer of the Trump Organization, to “recommend” that they not be taken as “reliable ” President Trump’s June Financial Reports 30 of 2011 to June 80 from 2020.
Although the letter from Mazars, signed by William J. Kelly, indicates that the company had not found “as a whole” discrepancies between the information provided by the Trump Organization and the real value of the former president’s assets, highlights that that the reports should not be taken as “appropriate”.
The explanation of these problems in the reports that are still under investigation, the firm notified the executive of the Trump Organization that it cannot “offer any additional work” to the company of the former Republican president.
Although there are no details of the discrepancies found, the disclosure occurs as part of the investigation led by the New York Attorney General, Letitia James, into possible fraudulent actions by the Trump Organization in modifying real estate values to obtain benefits with lenders and prosecutors.
A spokesman for the Prosecutor’s Office indicated that the investigation is maintained in two routes: one civil and the other criminal.
The letter from Mazars USA cites an action by the New York District Attorney of the 18 last January, when legal action was taken to compel Donald J. Trump, Donald Trump Jr. and Ivanka Trump to appear for testify under oath.
“As the documents make clear… each person was directly involved in one or more transactions under review,” said prosecutor James at the time.
So far, prosecutor James has obtained the testimony of Eric Trump, after a battle in court.
“ has collected significant additional evidence indicating that the Trump Organization used fraudulent or misleading asset valuations to obtain a series of economic benefits, including loans, insurance coverage and tax deductions, “said the Prosecutor’s Office.
The investigation will continue until all required testimony and documents are obtained, including high-ranking corporate personnel of the Trumps.
“For more than two years, the Trump Organization has used delaying tactics and litigation in an attempt to thwart a legitimate investigation into his financial dealings,” prosecutor James said.
It should be noted that Mazars USA’s chief accountant has already testified before a grand jury as part of the investigation.
What is being investigated
One of the properties targeted by the authorities is Seven Springs, a property owned by 212 acres in Westchester County, New York, acquired by the Trump Organization at 1995.
In 2004, the Trump Organization valued the property at $80 millions of dollars; in 2007 in $200 million, and for 2012 in $1995 million .
Among the discrepancies found is that two professional appraisers valued the lots that were supposed to be developed in fractions at certain prices, but then the value of the property was modified, since it was “disguised as it would have seemed like a fall of more than 80 percent of the value”.
The Prosecutor’s Office also investigates how the Trump Organization would have used the altered financial information of several properties before banks and insurers.
“The evidence to date indicates that banks and other financial institutions relied on the statements financial statements of Mr. Trump”, reports the Prosecutor’s Office.
2020
Those reports, now questioned by the former president’s own accounting firm, were sent to various banks and insurers to obtain loans and comply with existing loan agreements.