Finance
Trump Organization monitor flags errors and financial misstatements ahead of ruling in fraud case
The Trump Organization has cooperated with its independent monitor but risks putting out inaccurate financial statements, according to a report issued on Friday by a court-appointed monitor.
The report comes ahead of an expected ruling in a $370 million civil trial involving former President Donald Trump’s company.
Trump, his sons Eric Trump and Donald Trump Jr., and other top Trump Organization executives are accused by New York Attorney General Letitia James of engaging in a decade-long scheme in which they used “numerous acts of fraud and misrepresentation” to inflate Trump’s net worth in order get more favorable loan terms. The judge overseeing the case already found the defendants liable for using false documents to do business. The former president has denied all wrongdoing in the case.
The report – issued at the request of Judge Arthur Engoron to summarize the 14 months of the Trump Organization’s court-appointed monitorship – found that the company has been cooperative, implemented some changes, and issued necessary corrections to financial statements. However, based on her review of over 3000 documents, retired judge Barbara Jones identified that the Trump Organization often provided documents “lacking in completeness and timeliness.”
Former President Donald Trump sits in New York State Supreme Court during his civil fraud trial, on Jan. 11, 2024, in New York.
Michael M. Santiago/Getty Images, FILE
“It is important to note that the Trump Organization acknowledged the disclosure issues described after I brought them to its attention and has been open to recommendations to improve accuracy and transparency,” Jones wrote, noting the company implemented changes to their disclosures and provided additional information following omissions.
However, Jones added, “Absent steps to address the items above, my observations suggest misstatements and errors may continue to occur, which could result in incorrect or inaccurate reporting of financial information to third parties.”
Jones also said that the Trump Organization still lacks a formal compliance department, issued statements that include errors and misstatements, and operates in a manner that reflects “a lack of effective governance.”
“For example, based on the inconsistencies described above, it does not appear that there are adequate accounting and presentation standards, procedures, or training associated with the preparation of financial disclosures. To the extent adequate standards and procedures do exist, they do not appear to have been followed across the organization,” Jones noted.
Her report was issued on Friday, one week ahead of an expected ruling in Trump’s $370 million civil fraud trial. Judge Engoron has closely watched Jones’ monitorship, using one of her past reports to justify beginning the dissolution of the Trump Organization in his summary judgment order.
Former President Donald Trump sits in New York State Supreme Court during his civil fraud trial, on Jan. 11, 2024, in New York.
Michael M. Santiago/Getty Images
“Even with a preliminary injunction in place, and with an independent monitor overseeing their compliance, defendants have continued to disseminate false and misleading information while conducting business. This ongoing flouting of the court’s prior order, combined with the persistent nature of the false SFC’s year after year, have demonstrated the necessity of canceling the certificates,” Engoron wrote in September.
Expressing concern that Jones’ letters have offered an inaccurate picture of the Trump Organization’s compliance, defense attorney Chris Kise unsuccessfully attempted to call Jones as a witness at the trial, which Engoron rejected due to Jones’ role as an “arm of the court.”
When called as a witness, Trump organization executive Mark Hawthorn defended his work coordinating with Jones and the overall conduct of the company.
“We believe everything they deemed as an objection we have responded to diligently and very accurately,” Hawthorn said. “No one from that team has ever communicated to us that they have uncovered fraud or any irregularities.”
Finance
Las Cruces finance director gets national honor for ‘exceptional contributions’
EL PASO, Texas (KTSM) — The City of Las Cruces’ finance director has received a national honor recognizing “exceptional contributions to public finance and local government service,” the City said.
Finance Director Lesley Doyle was selected by the Government Finance Officers Association (GFOA) to receive the organization’s “Recognition for Outstanding Public Service.”
The award recognizes Doyle’s leadership during a critical financial period for the City.
She stepped into the role of finance director as the City’s FY25 audit identified a projected beginning balance shortfall of more than $10 million in a community of nearly 120,000 residents, the City said.
Doyle led a coordinated effort to communicate the financial situation clearly to City departments, executive leadership, and the City Council, while working with the budget team to close the gap without reducing essential services.
Josie Trevino, assistant finance director, credited Doyle with building a culture of trust and collaboration between the Finance Department and other City departments from the beginning of her tenure.
Doyle came to municipal government after a career in public education, transitioning from a school district into City finance leadership.
“In her first year, she met the challenge with confidence, emphasizing open communication, transparency, and proactive problem-solving. Her leadership has helped strengthen relationships across the organization while fostering a positive and supportive workplace culture within the Finance Department,” the City of Las Cruces said.
“The balance of technical skill and genuine care for people is what makes Lesley’s leadership unique,” Trevino said.
The GFOA has published Doyle’s recognition on its website, and her story will also be highlighted during the upcoming GFOA newsletter and highlighted at the annual GFOA conference.
Finance
Former top Treasury adviser warns that HMRC plans to track personal finances with AI
A former senior Treasury adviser to Gordon Brown has warned that HMRC is on the cusp of using artificial intelligence to track people’s and businesses income and expenditure without them knowing.
Dr Chris Wales, who was a member of Mr Brown’s Council of Economic Advisers for more than six years, has sounded the alarm while launching a chilling book on the conduct of the Spanish tax authority, Agencia Tributaria.
He is set to join former Labour Treasury minister Baroness Dawn Primarolo at an event next week flagging up how the Spanish model of dealing with tax evasion is about to arrive in the UK suggesting that the door is opening for a “surveillance state.”
In a preview of the future, Dr Wales has claimed that confidentiality in personal life – not just finances – “will simply go out of the window” and asks whether there are adequate safeguards in the UK to prevent HMRC from emulating its Spanish counterpart.
He said: “From 1 January, every single invoice will go through the tax agency in Spain. The Inspector can already obtain all your utility bills and will soon find out which clinic and pharmacy you use and what you buy there, which restaurants you eat at, where you purchase wine and groceries, what kind of car you have, how far you drive and where you park, what flights you take and which hotels you use. Information security? A thing of the past.”
He went on: “I am far from being a libertarian, but I see great danger in the direction in which tax authority powers are going, particularly because the process doesn’t seem to involve our active consent. There is little parliamentary debate about it. In Spain it is simply out of control. In the UK, let’s see.”
Highlighting the CONNECT AI program already used by HMRC in the UK, Dr Wales claimed that the UK is now close to following Spain’s lead.
He said: “HMRC has been using sophisticated information technology for years including an AI system called CONNECT which, as early as 2023, was said to contain more than 55 billion taxpayer-related data items.
“It will be much bigger today with these billions of pieces of information about taxpayers capable of being sorted quickly by AI.”
Dr Wales, who is now senior research adviser at International Centre for Tax and Development, added that HMRC also declines to say what algorithms it uses, under the pretext that if you publish them people will “game the system”, a claim that he suggests does not stand up to scrutiny.
“The system is understood to be used to target evasion. For tax authorities, everyone is a potential tax evader. This means that they believe they have a legitimate reason to collect data about all of us,” he said.
Finance
Boyle Heights warehouse fire: Where neighbors, victims can seek financial assistance
More than two weeks after a fire broke out inside the Lineage warehouse in Boyle Heights, many neighbors have received N95 masks and air purified while mobile health clinics are set up in their area.
But some neighbors said the massive fire that sent toxic fume into the air and created a horrendous stench of rotting food has cost them out of pocket.
Neighbors said they missed days of work while spending extra money on property cleanup. One woman said she spent hundreds of dollars on air purified before they became more widely distributed.
Lineage, the company that operates the burned warehouse, donated $2 million to the California Community Foundation (CCF) so the money can be distributed to the community. The organization said it’s split the money between different organizations.
At least 10 of them are listed as providing financial assistance.
The Boyle Heights Chamber of Commerce said it’s offering small business grants funded, in part, by the group, Inclusive Action for the City.
“We’re hoping that for brick and mortars: it would be up to $3,000. And then for our vendors, it would be up to $1,000,” Miriam Rodriguez with the Boyle Heights Chamber of Commerce said, adding the application is “very straightforward.” “It’s intentionally made that way so that there’s not a lot of requirements. We’re not asking for legal status. We’re not asking for pages of documentation.”
-
Lifestyle32 minutes agoSunday Puzzle: Five plus two, two plus five
-
Technology44 minutes agoXbox is a disaster
-
World47 minutes agoWorld leaders, dignitaries pay tribute to America on historic 250th birthday
-
Politics52 minutes agoExpert who fled Cuba warns of ‘vicious cycle’ that will lead to ‘communists in double digits’ in Congress
-
Health59 minutes agoJuly 4 heat delays America 250 celebration as State Fair guests share love of USA
-
Sports1 hour agoToronto Maple Leafs top pick Gavin McKenna reveals that he’s changing his jersey number
-
Technology1 hour agoChina’s robot-run hotel opens to public in 2027
-
Business1 hour agoChina-backed AI tool behind fake Brad Pitt fight making Hollywood inroads