Donny's Accounting Firm Has Bailed on Him.

jaF0

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https://abcnews.go.com/US/trumps-ac...l-disclosures-longer-relied/story?id=82886011

Mazars effectively resigned as the Trump Organization's accountant, saying, "Due in part to our decision regarding the financial statements, as well as the totality of the circumstances, we have also reached the point such that there is a non-waivable conflict of interest with the Trump Organization. As a result, we are not able to provide any new work product to the Trump Organization."






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However, the New York Attorney General seized on the letter as reason why a judge should order compliance with a series of subpoenas issued to the company and personally to Trump, his eldest son Donald Jr., and his eldest daughter Ivanka.

"This development further reinforces what OAG's previous submissions already showed: The Court should order Respondents' compliance with OAG's document and testimonial subpoenas," the attorney general's office said in a filing Monday.



Monday's AG filing also makes mention of the recent flap over Trump's purported destruction of documents as asserted by the House committee investigating the Jan. 6 Capitol attack.

"Given reports concerning Mr. Trump's destruction of documents covered by the Presidential Records Act, he should be ordered to comply with Instruction 3 in the subpoena entitled 'Documents No Longer in Your Possession,' requiring a sworn statement regarding how documents were destroyed and by whom," the filing said.
 
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What a surprise that his accountants would prefer not to go to prison with him if they can avoid it.
 
What did Mazars USA find, that drove them to refuse to produce new work
for the Trump Empire ?

February 14, 2022

In a letter to the Trump Organization on Feb. 9, Mazars USA disclosed that
it could no longer stand behind annual financial statements it prepared for
Donald Trump

- NY Times

Trump's longtime accountant says a decade of his financial statements are unreliable

In a letter dated Feb. 9 to the Trump Organization's executive vice president
and chief legal officer, Mazars' attorney warned that financial statements from
2011 to 2020 "should no longer be relied upon" and said the company should
inform any recipients of that information not to depend on those files.

https://www.npr.org/2022/02/14/1080...s-relatioship-financial-statements-unreliable
 
What did Mazars USA find, that drove them to refuse to produce new work
for the Trump Empire ?

They didn't just refuse new work; they disavowed the reliability of the last ten years of work. They're saying he lied to them for ten years, which falls in with what he's being investigated for one of multiple fronts.
 
He can always find another accountant.

I understand that a public accountancy business in the USA has to have a minimum level of professional indemnity insurance in most states. Any firm which took on that account without coverage would be raving mad; so finding another accountant may be not so easy.
 
Mazars themselves are also in trouble because any sensible claimant in a civil action against Trump will also issue proceedings against Mazars. Mazars in turn will have to blame Trump for everything in order to defend themselves - and they have heaps of information.

If Mazars do not blame Trump there is a very good chance that their insurers will deny them indemnity under their Professional Indemnity policy. That is, the policy will pay nothing because of Mazar's alleged involvement in fraud, thus threatening Mazar's existence.(Remember Arthur Anderson?) Denials of Indemnity, as opposed to denials of liability, are tough to win, but insurers are quite likely to go down this route to maximize pressure.

In chess terms Mazars have suffered a fork attack and I am pretty certain that the NY DA played this move. Expect Mazar's partners to sing very loudly in the near future. ;)
 
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