Former President Donald Trump and New York state lawyers have reached a settlement regarding a $175 million bond that Trump posted to block a civil fraud judgment as he pursues appeals. The bond was put in place after Trump lost a court case brought by the Democratic attorney general, who alleged that Trump, his company, and key executives had defrauded bankers and insurers by lying about his wealth. The settlement agreement includes keeping the $175 million in a cash account that will accrue interest but faces no downside risk. The bond prevents the state from seizing Trump’s assets to satisfy the judgment.
The agreement was reached during a court hearing in Manhattan, cutting short what could have been a day-long proceeding with witnesses. The bond, which currently has grown by over $700,000, will remain in a cash account with Knight Specialty Insurance Company. Trump denies the claims against him and is appealing the judgment, which resulted in a more than $454 million debt. The judge, Arthur Engoron, presided over the hearing and engaged in testy exchanges with Trump’s attorney, Christopher Kise, challenging the availability of the posted money for collection.
At the hearing, Kise expressed frustration with the New York Attorney General’s office, citing that they would find fault with any action taken. However, Andrew Amer, an attorney for New York state, proposed settlement terms that included giving Knight Specialty Insurance exclusive control of the $175 million and agreeing not to move the money into other financial instruments. This was due to Trump raising the money with help from a relatively small out-of-state insurance company. Trump’s attorney, Alina Habba, spoke to reporters outside the court, stating that they came to an agreement to modify terms while maintaining the same conditions.
Trump also criticized Judge Engoron, accusing him of not understanding the case and challenging the bonding company’s reliability. Trump defended the bonding company’s credibility, emphasizing that they have $175 million of his collateral. The settlement agreement ensures that the bond will remain in place as Trump continues his appeal, providing assurance to both parties involved. The resolution of the bond issue brings a temporary end to the legal battle between Trump and the state of New York, allowing the focus to shift back to the ongoing criminal hush money trial involving the former president.
