Trump’s New Accounting Firm Agrees to Respond to New York AG Subpoena

Erik Larson
Updated ·2 min read
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(Bloomberg) -- Donald Trump’s new accounting firm struck a deal with the New York attorney general to hand over documents subpoenaed in the state’s $250 million civil suit over the former president’s asset valuations.

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Whitley Penn LLP, the Texas-based firm Trump hired after he parted ways with longtime accountant Mazars USA LLP, reached the agreement with Trump and New York Attorney General Letitia James last week, according to an April 7 order signed by New York state court Justice Arthur Engoron.

Read the judge’s order here

Under the deal, Whitley Penn will hand over all documents and communications related to the start of its business relationship with the Trump Organization, as well as all records related to Trump’s statements of financial condition, which are central to New York’s lawsuit.

The AG claims Trump and three of his children inflated the value of assets of the family’s real estate business and is seeking penalties including a permanent ban on the four running companies in the state. Mazars disavowed almost a decade of financial statements for the Trump Organization based on findings from James’s investigation.

Read More: Trump Sued by New York Over ‘Fraudulent’ Asset Valuations

Whitley Penn initially declined to respond to the subpoena on the grounds that it was blocked by what it said was accountant-client privilege, prompting James to seek a court order from the judge. The privilege doesn’t apply in New York, James argued in her filing last month.

The accounting firm will also hand over all documents and communications “related to any audit, review or compilation engagement” pertaining to several Trump-affiliated entities, according to the agreement.

In addition, Whitley Penn will allow one of its employees to be questioned by the AG’s staff. In her filing, James said she needed to depose a Whitley Penn partner who was “involved in transactions and occurrences relevant to this litigation.”

The case is set for trial in October.

The case is New York v. Trump, 452564/2022, New York State Supreme Court (Manhattan).

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(Updates with details and context starting in second paragraph.)

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