The New York attorney general’s office is challenging the $175 million bond that former President Donald Trump posted in a civil fraud case against him and his company. The office argues that the company that underwrote the bond, Knight Specialty Insurance Company (KSIC), does not have the financial capacity to cover the full amount if needed. The state is calling for the bond to be thrown out ahead of a hearing on Monday.
Trump was ordered to post the $175 million bond after he and his associates were found liable for fraudulently misstating the value of assets in financial statements. This was done in order to obtain more favorable business deals and reflect a higher net worth for Trump. The total amount owed by Trump and his co-defendants is over $464.2 million.
KSIC, chaired by billionaire Don Hankey, underwrote the bond for Trump in April. The attorney general’s office challenged the bond shortly after it was posted, asking for more information about the company’s financials. KSIC defended its finances in a filing on Monday, but the state still found the information insufficient due to concerns about the company’s financial stability.
The state argues that KSIC reports a net worth of $138 million, which is smaller than
