Trump’s Lawyers Challenge Accountants in Fraud Trial Defense
Donald Trump and his legal team are shifting blame to the outside accounting firm Mazars USA LLP as they defend themselves in a civil fraud trial. The lawyers spent the day questioning the practices of Mazars and casting doubt on the testimony of a retired Mazars partner who had worked on Trump’s financial statements for years. The defense’s accounting expert, Jason Flemmons, challenged some of the firm’s practices and disputed the claim made by the Mazars partner that certain property appraisals hadn’t been turned over. Flemmons stated that such diligence is not required under professional accounting standards and requesting appraisals would be highly unusual.
The issue at the heart of the trial is whether Trump, his company, and top executives manipulated the value of his assets to inflate his wealth and make his properties appear more successful than they actually were. The New York Attorney General, Letitia James, accuses Trump of exaggerating his wealth by billions of dollars on financial statements used to secure loans and make deals. James is seeking over $300 million in ill-gotten gains and wants the defendants banned from doing business in New York.
In Judge Arthur Engoron’s pre-trial ruling, he found that Trump and the other defendants committed fraud by inflating Trump’s net worth and the value of his assets on financial statements. The judge imposed a punishment that could potentially strip Trump of some of his properties. Trump has consistently denied any wrongdoing and has argued that if anything, his financial statements undervalued his properties. He believes his Mar-a-Lago estate in Florida is worth up to $1.5 billion, double the highest value listed on his financial statements.
During the trial, Trump’s lawyers attempted to argue that even if some properties were overvalued, others were undervalued, thus balancing out any misstatements or fraud. However, Judge Engoron dismissed this argument as ridiculous. The defense also emphasized that Trump relied on outside accountants and financial experts to prepare his financial statements, with Trump Jr. and Eric Trump testifying that they had trusted the expertise of professionals. Trump himself testified that he paid Mazars millions of dollars for their services and gave them the authority to work with his company as needed.
The trial will continue as Trump’s defense team seeks to counter the state’s claims and defend the former president’s real estate empire. The outcome of the trial could have significant implications for Trump’s financial future and the future of his company.
