Trump Organization no longer prepares financial statements at heart of trial, executive testifies

Former President Trump’s company no longer prepares the sweeping financial statements now under scrutiny in his civil fraud trial in New York, an executive testified Monday.

Mark Hawthorn, the chief operating officer of the Trump Organization’s hotel arm, told the court that the firm bearing the name of the former president prepares audits and some other specific financial reports, but “there is no roll-up financial statement of the company,” The Associated Press reported.

When asked why there are no longer comprehensive reports, Hawthorn told lawyers they are “not required by any lender, currently, or any constituency,” per AP.

These “statements of financial statements” from 2014-21 are at the center of New York Attorney General Letitia James’s (D) $250 million lawsuit against the former president, his two adult sons and the Trump Organization.

The suit alleges the company sought lower taxes and better insurance coverage and misled lenders by falsely inflating and deflating the value of its assets, which Trump and his sons have repeatedly denied.

Trump claims his wealth was understated rather than overblown on his financial statements. He has emphasized the numbers were accompanied by disclaimers stating they weren’t audited and that others could reach a different judgment.

The defense has argued the various companies under the Trump Organization’s umbrella have produced scores of financial documents “that no one had a problem with,” according to lawyer Clifford Robert.

Andrew Amer, a lawyer for James’s office, has pushed back on this argument, claiming the suit is about Trump’s statements of financial condition, and that the other documents are irrelevant.

Judge Arthur Engoron has already ruled Trump and his co-defendants engaged in fraud. The trial, which began nearly two months ago, is to decide on claims of conspiracy, insurance fraud and falsifying business records.

Trump’s defense began presenting its case earlier this month and recently called ex-Trump executive Jeffrey McConney to the stand.

McConney, who served as the corporate controller of the Trump Organization, laid out to the court last week how he and other executives determined asset values, which he argued were legitimate. 

In emotional testimony, he told the court he never meant to mislead anyone or to be inaccurate, adding that he “felt comfortable” with the company’s valuations.