Donald Trump is not only in legal peril, but his finances are also about to be in tatters after his longtime accounting firm Mazars dumped him this week.
As the Trump Organization continues to be under investigation for fraud by New York Attorney General Letitia James, Mazars made the decision to no longer stand by the company’s financial statements as CNN reported on Tuesday.
“The longtime accounting firm for the Trump Organization has now cut ties with the company and announced it can no longer stand behind ten years of financial statements it prepared for the former president’s family business,” CNN’s Bianna Golodryga said. “The firm advised Trump business partners to no longer rely on the documents.”
Since the documents are unreliable, that puts Trump, his adult kids, and his business in deeper trouble because banks and other financial institutions that relied on those statements to justify approval of loaning Trump money could call the loans in.
“This firm goes back to Fred Trump, Donald Trump’s dad. They have a long-standing relationship and the firm itself, as we know, just in being engaged in any type of business transaction, this is not a good look for the firm,” former federal prosecutor Kim Wehle explained to CNN. “The firm is coming out and saying, ‘We made some mistakes, we can’t stand behind it,’ so this puts into potential jeopardy its own reputation and other relationships it has both with banks and with clients.”
“It’s a super big deal for the firm and of course, for Donald Trump, because this information could give rise to banks calling their loans, saying, ‘Listen, we gave you money in reliance on information that now turns out by your own accounting firm to be inaccurate,'” Wehle continued. “That’s separate from the potential legal liability from New York.”
Here’s the video via YouTube:
Trump owes hundreds of millions of dollars in loans that can be considered fraudulently obtained because of Mazars’ decision to admit the financial statements are unreliable. If called in, Trump would be ruined financially as he would likely have to sell assets to make up the amount he needs or default, which in that case would mean the banks could seize his assets.
And this is on top of his continuing legal jeopardy in New York, Washington DC, and Georgia.
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