Donald Trump and his lawyers are focusing on the role of external accounting firm Mazars USA LLP as they defend against a civil fraud trial brought by New York Attorney General Letitia James. They are digging into Mazars USA LLP’s practices and have brought in expert testimony to question the firm’s role in preparing financial statements. Jason Flemmons, a former deputy chief accountant at the U.S. Securities and Exchange Commission, testified about the firm’s practices and raised doubts about the testimony of Donald Bender, who worked on Trump’s financial statements at Mazars. Trump’s lawyers are seeking to refute the state’s claims that Trump and his company manipulated the value of his assets to make him look wealthier and his properties more successful than they actually were. James alleges that Trump, his company, and top executives exaggerated his wealth by billions of dollars on the financial statements by inflating property values.
Before the trial, Judge Arthur Engoron ruled that Trump and other defendants committed fraud by exaggerating his net worth and the value of assets on his financial statements. The judge imposed a punishment that could strip Trump of some marquee properties, though an appeals court is keeping them in his control for now. Trump has denied wrongdoing and emphasized the disclaimers on the financial statements as insulation from liability for discrepancies or misstatements.
Trump’s testimony has echoed his belief that his financial statements undervalued how much his properties were worth. His lawyers argued that it didn’t matter if he overvalued some of his properties because he significantly undervalued others. However, the judge criticized the argument as “ridiculous” and shut it down. Throughout the trial, there have been testimonies from expert witnesses and Trump Organization executives, including Donald Trump Jr. and Eric Trump, emphasizing their reliance on external accountants for the accuracy of the financial statements.
Unique perspective: In the Trump civil fraud case, the focus on external accountants highlights the complexity and importance of financial oversight in high-stakes legal battles. It also raises questions about the accountability of external firms in maintaining the accuracy of financial statements for their clients.
