Court documents: Mazars, Donald Trump's accounting firm, cuts ties to Trump Organization

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WASHINGTON – Donald Trump's longtime accounting firm, which has been involved in a pair of investigations of the former president in New York state, has ended its relationship with his family business, according to court documents.

The firm, Mazars, also said a decade of Trump Organization financial statements "should no longer be relied upon," said a document included in a court filing Monday by New York Attorney General Letitia James.

James and the Manhattan district attorney's office are investigating whether Trump's company improperly inflated or deflated the values of its holdings to secure loans or lower its tax bills.

The document from the accounting firm, dated Feb. 9, was disclosed as part of the New York attorney general's effort to question the former president, his son Donald Trump Jr. and daughter Ivanka Trump as part of the state civil inquiry into the family's business operations.

Trump has denied wrongdoing and accused investigators of political motivations.

More: New York Attorney General Letitia James says Trump Organization misled banks, tax officials

Appeals court: Trump's longtime accounting firm must provide financial records to Congress

In a written statement, the Trump Organization said it is "disappointed that Mazars has chosen to part ways" but noted that the company did not identify any "material discrepancies" in its many statements of financial condition.

The 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," the Trump Organization said. "This confirmation effectively renders the investigations by the DA and AG moot.”

Former President Donald Trump, photographed on Air Force One after a campaign rally in Mosinee, Wis., in September 2020, is at the center of a New York state investigation into his business dealings.
Former President Donald Trump, photographed on Air Force One after a campaign rally in Mosinee, Wis., in September 2020, is at the center of a New York state investigation into his business dealings.

Mazars notified the Trump Organization it was cutting ties, directing the company to retract information contained in financial statements from 2011 to 2020.

In the letter, Mazars told Trump Organization attorney Alan Garten that the company's statements of its financial condition “should no longer be relied upon and you should inform any recipients" of that determination.

The decision was based in part on “our own investigation," as well as those of the New York authorities, Mazar said.

The financial statements are likely to figure prominently in the investigations into the operations of the Trump Organization led by the New York Attorney General’s Office and the Manhattan District Attorney’s Office.

Last month, state investigators disclosed that they had "collected significant additional 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."

The attorney general's assessment of the evidence against the Trump business last month represented the most detailed accounting of the legal threat confronting the former president and his business.

The state investigation and a parallel criminal inquiry by the Manhattan District Attorney's Office are two of the legal battles shadowing the former president.

James’ office has teamed with the Manhattan district attorney to investigate whether there is evidence that Trump, his business organization and members of his family violated the law by exaggerating or undervaluing the worth of various properties to obtain loans, lower taxes and other financial advantages.

According to the documents filed last month, investigators indicated they had “obtained documents and testimony from numerous witnesses that were involved in creating and disseminating the misleading statements and omissions.”

Investigators determined that official statements of Trump’s financial condition were made “in broad terms and in ways which were often inaccurate or misleading when compared with the supporting data and documentation that the Trump Organization submitted to its accounting firm," a court filing said.

Trump is also under investigation in Atlanta over efforts to pressure Georgia election officials into overturning his loss of the state to rival Joe Biden in the 2020 presidential election.

Fulton County District Attorney Fani Willis told USA TODAY earlier this month that more than 100 potential witnesses had been identified in that inquiry.

A congressional committee is also investigating Trump's conduct in and around the Jan. 6, 2021, insurrection at the U.S. Capitol.

During a rally in Texas in late January, Trump protested all the investigations: "For years they've been going after my company. Many years. They've been using every trick in the book to literally, if they can, put me in jail. They wanna put me in jail!"

More: Remember Trump’s call to ‘find’ votes in Georgia? Meet Fani Willis, the DA who could charge him

This article originally appeared on USA TODAY: Trump Organization accounting firm cuts ties to company

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