Lawyers representing former President Donald Trump have clarified that the $175 million bond posted to meet the requirements of the New York civil fraud case judgement is financially secure. They have requested the judge to dismiss the attorney general’s challenge to the bond and provide Trump with costs and fees. The bond is backed by Knight Specialty Insurance Company and is supported by a Charles Schwab account with over $175 million in cash, according to Trump’s court filings. The account is secured by a security interest granted by the DJT Trust, which maintains the minimum cash balance required. Knight Specialty Insurance Company is also fully backed by its parent company, Knight Insurance Company, Ltd., to assume any risk associated with the bond.
Gregory Serio, a former superintendent of insurance for New York state, affirmed the bond’s security in one of Trump’s court filings. Serio is a partner at Park Strategies, a government consulting firm. He stated that the bond is adequately secured, with Knight Insurance Company, Ltd., reinsuring 100% of Knight Specialty Insurance Company’s risk. The attorney general’s office had raised concerns earlier this month about the underwriter’s financial capacity to act on behalf of the bond. Judge Arthur Engoron has scheduled a hearing for the following week to address these concerns.
Trump’s legal team argued that a hearing is unnecessary, as the evidence supporting the bond’s justification is significant and eliminates the need for additional validation. They claimed that the court filing provided substantial proof that Knight Specialty Insurance Company is a reliable surety for the bond. The attorney general’s office had questioned whether Knight Specialty was authorized to underwrite a surety bond in New York state and if they lacked the necessary qualification certification from the state regulator. Trump’s attorneys countered by stating that the possession of a certificate is not the sole indicator of financial stability, and the bond remains financially secure despite the absence of such a certificate.
The ongoing dispute over the $175 million bond will be further addressed at the scheduled hearing next week, where the judge will evaluate the arguments presented by both parties. Despite the attorney general’s challenge to the bond, Trump’s legal team remains confident in the bond’s financial soundness and had requested the judge to dismiss the challenge. The assurance provided by Gregory Serio regarding the bond’s security and the financial backing of Knight Insurance Company, Ltd., reinforces Trump’s claims about the bond’s adequacy. The outcome of the hearing is expected to clarify any remaining doubts about the bond’s validity and suitability to satisfy the civil fraud case judgment imposed on Donald Trump.
