Former Deputy Assistant Attorney General Harry Litman explained to CNN that he doesn't think that the Trump Organization's accounting problems will result in the company filing for bankruptcy any time soon.
The Trumps' accounting firm, Mazars USA, revealed that they were dumping Trump as a client and that many of the statements about his financial status couldn't be trusted.
Monday evening, Trump biographer Tim O'Brien predicted that this information could sink the Trump Org., but not because the Mazars were dumping the company. O'Brien explained that this could cause problems for the company by pushing banks that lend money to ask for their cash back and cancel the loans. There's also a possibility that the Trump Org. may be blocked from getting loans in the future. It's a problem Trump has already had after years of failing businesses and filing for bankruptcy.
"It tells me they [Mazars] got some bum information from him and they're calling him out on it, but it's not necessarily a bankruptcy-inducing event," said Litman. "The Trump Organization already lives with two wheels off the cliff and has a playbook here. It will go in a defensive crouch and sue everybody and claim, you know, that it's been exonerated as it already has done. The bigger implications here are for the [New York Attorney General Letitia] James investigation. She is doing a fraud investigation, civilly and criminally with the DA. Somebody made these false statements, Trump or his family. And don't forget Allen Weisselberg, and they are the people who might be in the immediate hotter water as a result of what Mazars is now saying, you gave us bad information. Maybe there's no material discrepancy, but whoever made that bad information is looking at more serious evidence of fraud."
See the conversation below:
'The Trump Organization already lives with two wheels off the cliff': legal expert www.youtube.com
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