New York Attorney General Asks Judge to Invalidate Trump’s $175M Civil Fraud Bond

April 19, 2024 TruthUSA

New York Attorney General Letitia James has requested that a judge invalidate the bond posted by former President Donald Trump in his civil fraud case. The request is based on the argument that the company that issued the bond does not have the necessary collateral to support it.

In February, Manhattan Judge Arthur Engoron imposed a $464 million penalty on the former president, The Trump Organization, and his adult sons following their conviction for financial fraud. In March, the amount was reduced to $175 million by an appeals court.

In the filing made on Friday, lawyers from the attorney general’s office claimed that California-based Knight Specialty Insurance Company (KSIC) is a “small insurer that is not authorized to conduct business in New York.”

“Based on the preceding, the People respectfully ask the Court to dismiss the motion justifying the surety, declare the Bond ineffective, and mandate the posting of a replacement bond within seven days, along with any other necessary relief,” the filing stated.

The attorney general’s filing precedes a pre-scheduled hearing set for Monday. They are requesting Judge Engoron to compel Trump and his co-defendants to provide a replacement bond within seven days of ruling on the matter.

“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the lawyers stated. “The face amount of the bond exceeds this limitation by $161.2 million.”

Earlier in the week, Knight submitted a filing with the state court in Manhattan stating that the bond was backed by a Charles Schwab account in cash and that it had access to assets totaling close to $2.2 billion at its parent company in case of any issues.

“By any measure, KSIC has provided assurance to (James) that she can receive the designated amount if the award is upheld on appeal,” Knight said. “KSIC was and is authorized to issue the bond.”