Trump’s longtime accounting firm cuts ties on financial statements

Because Ms. James’ investigation is civil, she cannot file criminal charges. But she could sue Mr. Trump and his company for financial penalties, and could try to shut down aspects of Mr. Trump’s business in New York.

A spokeswoman for Ms James declined to comment beyond the case.

In a statement, the accounting firm said that “in accordance with our standards of professional ethics, we cannot comment on services or client relationships”.

It’s unclear whether Mazars’ breakup with the Trumps will affect the district attorney’s criminal investigation of Mr. Trump. The firm has cooperated with this investigation, and Mr. Trump’s senior accountant at Mazars has previously testified before a grand jury hearing evidence relating to Mr. Trump.

A spokesman for the district attorney, Alvin Bragg, declined to comment.

Both investigations still face obstacles. While the statements may contain inflated estimates of the value of Mr. Trump’s properties, those same documents also include a number of disclaimers, including acknowledgments that Mr. Trump’s accountants had neither audited or authenticated its claims.

Another disclaimer notes that Mazars “did not express an opinion or provide assurance on” the statements, a common disclaimer in financial disclosure statements. The company also revealed that, in compiling the information for Mr. Trump, it “became aware of deviations from generally accepted accounting principles in the United States of America”.

Mr. Trump’s lawyers would likely argue that his lenders, sophisticated financial institutions like Deutsche Bank, did not rely on the statements to make loans to him.

Yet in her court filing last month, Ms James pointed to potential misrepresentations about the value of at least six Trump properties, including golf clubs in Westchester County, NY and Scotland, as well as his own Mr. Trump’s penthouse at Trump Tower. .

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