New York Attorney General Letitia James has asked a judge to void former President Donald Trump’s $175 million bond in his civil fraud case, expressing concerns about whether the issuing company, Knight Specialty Insurance Company, has the funds to back it up. James also questioned whether the collateral put up by Trump should be fully controlled by the company, as Trump’s team currently appears to have control over it. One of James’ concerns is that KSIC is not authorized to operate in New York and has limited experience in writing surety bonds in other jurisdictions.
Despite James’ filing, neither Trump’s lawyers nor KSIC have responded to requests for comment. Trump’s attorney, Alina Habba, previously stated that Trump is looking forward to vindicating his rights on appeal and overturning the verdict against him. James had previously filed a notice seeking more information about the bond, asking for Trump’s lawyers or the insurance company to justify the surety bond or provide additional information about the collateral. Trump’s bond was reduced to $175 million in March from an initial amount of $464 million, with Trump being liable for $454 million of the original sum.
The filing by James comes as Trump was in court for his New York criminal hush money case, facing charges of falsifying business records. A state appeals court judge rejected Trump’s request for an emergency stay of the trial, and a jury has been seated with arguments set to begin on Monday. Trump has pleaded not guilty to all counts in the criminal case. The former President has consistently denied any wrongdoing in both the civil fraud and criminal hush money cases, and has been vocal in criticizing the legal actions against him.
The concerns raised by James regarding the ability of the insurance company to back up Trump’s bond add further uncertainty to the legal proceedings surrounding the former President. The question of whether the collateral for the bond should be under the full control of the company rather than Trump’s team could impact the outcome of the case. With both the civil fraud and criminal hush money cases ongoing, Trump continues to fight the charges against him while maintaining his innocence. The outcome of the legal battles will have significant implications for Trump and his reputation moving forward.
