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Trump University prosecutor identifies an even 'bigger problem' for former president in Mazars letter
February 14, 2022 7:04PM ET
President Donald Trump (MSNBC)
Several legal analysts on Monday argued that decision of accounting firm Mazars to sever ties with the Trump Organization bodes ill for former President Donald Trump.
Conservative attorney George Conway even went so far as to say that the Mazars news was "the most calamitous thing" that could happen to Trump short of being indicted.
But Tristan Snell, a former assistant attorney general for New York state who successfully sued Trump over fraud at Trump University, believes that the Mazars letter could lead to some significant financial pain for the former president.
Writing on Twitter, Snell points to Mazars's claim that statements about Trump's financial condition ranging from the years 2011 through 2020 "should no longer be relied upon" as particularly problematic.
"Bigger problem for Trump: The loan agreements relying on the fraudulent financial reports likely have 'representations and warranties' -- including one in which Trump was vouching for the accuracy of all info he provided," he writes. "So Trump may now be in breach of the lending agreements."
Snell then explains how this could seriously hurt Trump's bottom line in the near future.
"The Mazars accounting letter may now result in Trump being considered in material breach of one or more of these lending agreements," he argues. "So the lenders, like DeutscheBank, could potentially call the loans early, change the interest rates, impose penalties or fees, etc."
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