Days after former President Donald Trump posted a $175 million bond to block New York state from imminently collecting on a huge civil fraud judgment, state lawyers Thursday called for more information on the bond’s bona fides. State Attorney General Letitia James’ office filed papers giving Trump’s lawyers or the bond underwriter 10 days to “justify” the bond — essentially, to show that the company can make good on it. That could mean disclosing more about the collateral Trump provided. A hearing was set for April 22.
Quick Read
- Bond Scrutiny: Following Trump’s posting of a $175 million bond to prevent immediate collection on a civil fraud judgment in New York, state lawyers are demanding validation of the bond’s credibility.
- State’s Request: The New York Attorney General’s office seeks to verify that the bond underwriter can fulfill its obligations, potentially requiring disclosure of the collateral provided by Trump.
- Upcoming Hearing: A hearing is scheduled for April 22 to address the state’s concerns about the bond’s sufficiency.
- Trump’s Legal Team’s Response: Trump’s attorney criticizes the state’s actions as an attempt to stir unnecessary controversy, asserting the legitimacy of the bond’s value.
- Bond Details: The bond aims to halt the enforcement of a more than $454 million judgment against Trump, resulting from a lawsuit alleging financial misrepresentation.
- Underwriter’s Financials: Knight Specialty Insurance Co., the bond’s underwriter, has submitted a financial statement showing substantial assets, supporting the bond’s viability.
- Appeal Protection: The bond is intended to protect Trump’s assets during the appeal process, though the state’s challenge introduces complications.
- Underwriter Verification: The state’s challenge may require the underwriter to demonstrate financial stability and the bond’s backing by identifiable assets.
The Associated Press has the story:
NY asks more information on Trump’s $175M appeal bond in civil fraud case
Newslooks- NEW YORK (AP) —
Days after former President Donald Trump posted a $175 million bond to block New York state from imminently collecting on a huge civil fraud judgment, state lawyers Thursday called for more information on the bond’s bona fides. State Attorney General Letitia James’ office filed papers giving Trump’s lawyers or the bond underwriter 10 days to “justify” the bond — essentially, to show that the company can make good on it. That could mean disclosing more about the collateral Trump provided. A hearing was set for April 22.
One of Trump’s lawyers, Christopher Kise, said James was trying to provoke a “baseless public quarrel in a desperate effort to regain relevance” after an appeals court last month significantly cut the amount of the bond needed to hold off collection.
“Yet another witch hunt!” Kise wrote in an email.
A message seeking comment was left for the underwriter, Knight Specialty Insurance Co.
The bond, posted Monday, at least temporarily stopped the state from potentially seizing Trump’s assets to satisfy the more than $454 million that he owes after losing a lawsuit trial. The case, brought by the Democratic attorney general, alleged that Trump defrauded bankers and insurers by lying about his wealth.
The ex-president and presumptive Republican nominee denies the claims and is appealing the judgment.
By posting the bond, Trump aimed to stop the clock on enforcement of the judgment during his appeal. But it hasn’t gone entirely smoothly.
First, the court system kicked back Monday’s filing for more paperwork, including a financial statement from Knight Specialty Insurance. That was filed Thursday, showing that the company has over $539 million in assets and related reinsurer Knight Insurance Co. Ltd. has over $2.1 billion.
Then James’ office filed notice that it “takes exception to the sufficiency” of the bond — a move that judgment winners can make to get more information from out-of-state underwriters, in some circumstances.
Knight Specialty Insurance is a Wilmington, Delaware-based part of the Los Angeles-based Knight Insurance Group.
The attorney general’s notice doesn’t request specific information. But “justifying” generally means demonstrating that the underwriter is financially sound and able to pay the bond amount if the judgment is upheld.
A state appeals court also has held, in an unrelated case, that there needed to be a showing that a bond was “sufficiently collateralized by identifiable assets.”
Knight Insurance Group Chairman Don Hankey told The Associated Press Monday that cash and bonds were used as collateral for Trump’s appellate bond.
