The New York Attorney General’s office is seeking to void a $175 million bond posted by former President Donald Trump in his civil business fraud case as he appeals a judgment. The office argued that Trump and other defendants failed to show enough identifiable collateral to back the bond in Manhattan Supreme Court. The surety company used by Trump, Knight Specialty Insurance Company, is a small insurer not authorized to do business in New York, and has a total policyholder surplus of just $138 million. The AG’s office opposes Trump and KSIC’s motion justifying the insurer as the surety company holding the bond.
Lawyers for AG Letitia James have asked Judge Arthur Engoron to require Trump and other defendants to put up a replacement bond within seven days of ruling on the issue. The lawsuit against Trump led to a massive civil judgment against him, with Engoron finding him liable for fraud by falsely inflating the value of real estate assets to boost his net worth and gain financial benefits. Trump was ordered to pay $454 million in damages, with the amount growing every day with interest as he appeals the verdict. Trump was required by New York law to post a bond to guarantee the judgment.
A hearing on the bond dispute is scheduled for Monday as the AG’s office seeks to have the bond voided and replaced by a more secure one. The AG’s office raised concerns about the legitimacy and financial stability of the surety company used by Trump, Knight Specialty Insurance Company. The AG’s filing highlights the lack of regulatory oversight on the insurer, as well as its limited policyholder surplus, casting doubt on its ability to cover the full amount of the bond. The AG’s office is pushing for Trump and other defendants to provide a replacement bond to ensure the judgment is secured as the appeal process continues.
The legal battle between the New York Attorney General’s office and former President Donald Trump over the $175 million bond in the civil business fraud case showcases the continued fallout from the lawsuit that resulted in a massive judgment against Trump. The AG’s office has been persistent in seeking a replacement bond that offers more assurance of covering the damages awarded in the case. The upcoming hearing before Judge Arthur Engoron will determine the fate of the current bond and whether Trump and other defendants will have to provide a more substantial replacement. The case highlights the complexities and challenges involved in enforcing judgments in high-profile civil lawsuits.
As the legal proceedings unfold, both parties are bracing for further developments in the dispute over the bond. The AG’s office’s efforts to void the current bond and require a replacement within a strict timeframe underscore the urgency and significance of the issue at hand. The financial implications of the bond dispute, as well as the broader implications for Trump and the defendants, add layers of complexity to an already contentious legal battle. The outcome of the upcoming hearing could have far-reaching consequences for all parties involved, shaping the course of the appeal process and the enforcement of the judgment in the civil business fraud case.
