Feb 14, 2022 - Politics & Policy

Trump's accounting firm cuts ties with his business

Donald trump

Donald Trump in 2020. Photo: Yuri Gripas/Bloomberg via Getty Images

Former President Trump's longtime accounting firm, Mazars USA, abruptly cut ties with his business last week, court documents filed Monday show.

Driving the news: The accounting firm said in a letter to the Trump Organization dated Feb. 9 that annual financial statements it prepared for Trump from 2011 to 2020 "should no longer be relied upon."

  • "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 letter read.

The letter appeared in court documents filed by New York Attorney General Letitia James' office to compel Trump, his son Donald Trump Jr. and daughter Ivanka Trump to testify as part of the ongoing civil probe into Trump Organization finances.

Between the lines: The statements, which Trump used to obtain loans, are at the heart of two investigations into Trump's financial dealings — one by James' office and another by the Manhattan district attorney’s office.

Details: Mazars said in the letter it reached the conclusion that the statements were no longer reliable following filings by James, and after their own investigation, as well as from information it had gotten from "internal and external sources."

  • The firm said it had determined that it had 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."

What they're saying: A Trump Organization spokesperson told Axios that Mazar's letter indicates its “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.”

  • "This confirmation effectively renders the investigations by the DA and AG moot," the spokesperson said.

Editor's note: This is a developing story. Please check back for updates.

Go deeper