Trump Financial Statements Aren't Reliable

New York — 

The accounting firm that prepared former President Donald Trump’s annual financial statements says the documents, used to secure lucrative loans and burnish Trump’s image as a wealthy businessman, “should no longer be relied upon” after New York’s attorney general said they regularly misstated the value of assets.

In a letter to the Trump Organization’s lawyer February 9, Mazars USA LLP advised the company to inform anyone who had gotten the documents not to use them when assessing the financial health of the company and the ex-president. The firm also said it was cutting ties with Trump, its highest-profile client.

Mazars’ letter, made public in a court filing Monday, came just weeks after New York Attorney General Letitia James said her civil investigation uncovered evidence that Trump and his company used “fraudulent or misleading” valuations of its golf clubs, skyscrapers and other properties to get loans and tax benefits.

“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,” Mazars General Counsel William J. Kelly wrote to his Trump Organization counterpart, Alan Garten.

Kelly told Garten that Mazars could no longer work with Trump because of a conflict of interest and urged him to find another tax preparer. Kelly said several Trump-related tax returns still needed to be finished, including those of the former president and first lady.

The Trump Organization said in a statement it was “disappointed that Mazars has chosen to part ways,” but took Kelly’s letter as a positive because the accounting firm hadn’t found material discrepancies in Trump’s financial statements.

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.”

Kelly said Mazars performed its work on Trump’s financial statements “in accordance with professional standards” but that it could no longer stand by the documents in light of James’ findings and its own investigation. Kelly said Mazars’ conclusions applied to Trump’s 2011-2020 financial statements. Another firm handled Trump’s 2021 financial statement.

James’ office included a copy of Kelly’s letter in a court filing as she seeks to enforce a subpoena to have Trump and his two eldest children, Donald Jr. and Ivanka, testify under oath. A state court judge, Arthur Engoron, is scheduled to hear arguments Thursday in the subpoena dispute.

James, a Democrat, said Monday that given the evidence, “there should be no doubt that this is a lawful investigation and that we have legitimate reason” to question Trump, a Republican, and his children, both of whom have been Trump Organization executives.

Trump’s lawyers have argued that any testimony they give could be used against them in a parallel criminal investigation being overseen by the Manhattan district attorney’s office — a probe that led to tax fraud charges last year against the Trump Organization and Allen Weisselberg, its longtime chief financial officer.

Trump has given his Statement of Financial Condition — a yearly snapshot of his holdings — to banks to secure hundreds of millions of dollars’ worth of loans on properties such as a Wall Street office building and a Florida golf course, and to financial magazines to justify his place among the world’s billionaires.

In a court filing last month, James’ office detailed several instances in which Trump misstated the value of assets on financial statements given to banks.

Deutsche Bank accepted Trump’s financial statements without objection in a deal for $300 million in loans for three of his properties and, in internal memoranda, emphasized Trump’s reported financial strength as a factor in lending to him, James’ office said.

Another bank said it received financial statements in 2014 stating Trump had a net worth of $5.8 billion and liquidity of $302 million. A bank official involved in that deal told James’ office that if he were aware of misstatements on Trump’s statement of financial condition, he would have killed the deal.

James’ office said its investigation started after Trump’s former personal lawyer, Michael Cohen, told Congress in 2019 that Trump had a history of misrepresenting the value of assets to gain favorable loan terms and tax benefits.

Cohen gave copies of three of Trump’s financial statements to the House Committee on Oversight and Reform. Cohen said Trump gave the statements to Deutsche Bank to inquire about a loan to buy the NFL’s Buffalo Bills and to Forbes magazine to substantiate his claim to a spot on its list of the world’s wealthiest people.

Cohen served time in federal prison after pleading guilty in 2018 to tax crimes, lying to Congress and campaign finance violations, some of which involved his role in orchestrating payments to two women to keep them from talking about alleged affairs with Trump.

Trump’s lawyers have portrayed Cohen as having a vendetta against Trump and said in a recent court filing that it “stretches all credibility to believe that” James’ office put “any legitimate stock” in his testimony.

James’ office responded Monday that not only did it rely on Cohen’s testimony, but that his testimony is “vindicated by the evidence obtained to date and Mazars’s notification that those statements should not be relied upon.”

Álex Char: Katia Nule's reaction to Aida Merlano's statements - Barranquilla - Colombia

Katia Nule, wife of presidential candidate Alejandro Char, spoke out this Tuesday morning about the recent statements and images that have come to light about Aida Merlano.

(Also read: ‘Aida Merlano will be sued for false testimony’: Álex Char’s lawyer)

“They say that the past stepped on, and the present head on. And so it must be. That is why I want to tell you that all this information that has come out lately is not new to me or to my family,” said the former first lady of Barranquilla.

This is how the first known declaration of Nule began, since the confessions of former congresswoman Merlano about her contacts and closeness with Álex Char.

The woman, who is shown in a video broadcast in the last few hours on social networks, maintained that the information is old, “but above all outdated.”

To the past, stepped on.
This is Katia Nule, wife of Alex Char, dirty politician, they think she will resign, but this is old, if the captain knows, the sailors stay put, nothing happens, gentlemen. pic.twitter.com/bcxNSqckZQ

— Meli Castell (@meli_castell) February 8, 2022

The rejection of recent events

This is not my first political campaign, I know how this works

“I understand that many issues come up in political campaigns, a lot of information comes out. And I know, because this is not my first political campaign, I know how this works. However, there is a subject that must be untouchable, which is the family, ”she said.

He rejected and confessed that it causes him “a lot of pain” that people use these facts to “go over the feelings”. In addition, she thanked all the people for the messages of support, strength and solidarity.

(You may be interested in: How Aida Merlano’s statements affect Alex Char’s campaign)

“People who know me know that all this information is not going to destabilize me, it is not going to affect me, it is not going to break me or my family,” said the former queen of the Barranquilla Carnival.

Finally, Nule invited Colombians, sympathizers and “those who want to live in a country of opportunities” not to be sidetracked, not to be distracted and to work with respect.

BARRANQUILLA

More content from Colombia:

– Misfits attack a stone parrot until death in Riohacha

– They denounce that a fraud in the elections is being forged in Magdalena

– Tragedy in Pereira: landslide buried several houses and 9 dead

How Aida Merlano's statements affect Alex Char - Barranquilla - Colombia

The decision of driving away char to go ahead with his presidential campaign after the backlash caused by the statements of the former senator and fugitive from justice Aida Merlanoimply that the candidate will not only have to legally defend himself against the accusations, but now he will have to go out to debate in public, which until now he had avoided.

(Also: ‘Aida Merlano will be denounced for false testimony’: Álex Char’s lawyer)

That is one of the readings that political scientists, university professors and journalists consulted by TIME they maintain, explaining how the campaign of the former mayor of Barranquilla would be affected, after Merlano’s accusations.

Luis Fernando Trejosdirector of the UNCaribe Thought Center, considers that it is undeniably affecting the image of the pre-candidate, which can translate into the loss of opinion votes, but, he explains, “it must be taken into account that his campaign is not sustained on the opinion vote but on a great electoral infrastructure (machinery) that would be complemented with those that the other members of his coalition have”.

(Read: Barranquilla registers decrease in covid-19 pandemic indicators)

His campaign is not sustained on the opinion vote but on a great electoral infrastructure (machinery)

What is clear, adds Trejos, is that in the midst of this particular situation, “his strategy of not debating in public and using a lot of Tiktok can give his competitors an advantage inside and outside his coalition.”

Alexander White, a doctor in political science, explains that a large part of Alejandro Char’s candidacy for the presidency has been based on him as a person. He recalls that Char has often tried to show a solid family full of traditional values ​​on social networks.

Alex Char and Aida Merlano.

“Therefore, given the circumstances, Merlano’s testimony has transcended from the personal to the public sphere. In an intentional way, the pre-candidate Char was in charge of linking his family and his personal life as part of his campaign strategy, ”says Blanco.

Regarding the judicial effects that they could generate, Blanco estimates that they would not be immediate, and he thinks that the first results of the investigation could take more than six months and the presidential elections are within three months. “For this reason, the legal viability of his pre-candidacy, up to now, would not be affected.”

I don’t think gossip hurts local powers. However, if evidence were to be found, surely yes.

The case that continues to move on social networks, is seen by the university professor Jay Vegaas nothing new for the city, indicating that many of the things he says have been part of everyday Vox Populi for a long time.

Vega states that it is not strange for the city that the Gerlein group through Valorcon has been one of the mega-contractors of House Char.

“The important thing here is not to pre-judge and not leave everything to gossip, but rather that both the press and the control and justice agencies investigate and contribute to clarifying things. I don’t think gossip hurts local powers. However, if evidence were to be found, surely yes,” he says.

(Be sure to read: Barranquilla Police ask shopkeepers not to close businesses due to extortion)

for the political scientist Jessyka Manotasone cannot lose sight of the fact that the relationship between Char and Merlano is not only a matter of the private sphere, since this case acquires importance in the public and political agenda, based on all the revelations that imply possible crimes of corruption. and even a complaint for rape and attempted murder.

He considers that while the investigations progress, the analysis cannot be diverted or minimized to memes or ridicule on networks and should invite reflection on the traditional political structures and practices in the Caribbean Region and their impacts on our democratic culture.

On the other hand, Manotas maintains, it is clear that Alejandro Char’s main electoral flow is concentrated in the Caribbean Region, as shown by the most recent survey by the National Consulting Center, which shows a voting intention of 19% in this area of ​​the country. country, second only to Gustavo Petro.

Alejandro Char began his foray through the towns of the Caribbean.

Photo:

Alejandro Char press team

“However, in other regions (Coffee belt, Antioquia, center…) Char does not have the same level of recognition and political backing, and this scandal affects even more the perception of his image, especially in more conservative and opinion-voting sectors of the interior of the country, taking into account the wide dissemination that this case has had in the media and social networks, where it is concentrated a lot of the national discussion,” he says.

The political analyst warns that this fact can negatively affect to the candidate who has built his messages and narratives based on his image or personal figure as a leader, even above country-specific proposals or agendas.

(Don’t stop reading: They ask for transportation for children from Sucre who walk kilometers to study)

“It is important to wait for the results of future measurements in order to evaluate the impact that this situation may eventually have on the intention to vote in the The Caribbean Region and the rest of the country or if its political communication strategy and the power and influence that the Char family has over various regional media outlets is sufficient to tone down these events, although it is a difficult scenario considering the proximity of the votes,” he stresses.

political journalists They have also delved into the subject and the political connotations it would have, as is the case of Jean Pier Serna, who recognizes that Char is very strong in the Colombian Caribbean and estimates that he aspires to obtain one million 700 thousand votes in the entire region, 700 thousand of which should leave the Atlantic for which he is working. “The greatest difficulty for him can be generated in the opinion vote.”

while Edgar Salas that on his website edgarsalas.com.co, where he permanently analyzes political activity, especially Magdalena, he assures that this fact will not affect Alejandro Char’s proselytizing campaign at all, the Caribbean receives the fact as a unique personal situation.

Salas remembers Gabo to conclude: “nothing has happened here, we are a happy people, people will say, and when Char arrives they will yell President! The man with the cap”.

Read more news from Colombia here

They create a machine that facilitates the roasting of Quindío coffee

Bogotá, the Latin American capital of traffic jams

Erosion threatens the provision of water service in Salamina, Magdalena