Former President Donald Trump recently posted a $175 million bond in a civil fraud case against him and his company, protecting his assets as he appeals the judgment. This is one of two high-dollar bonds Trump has posted, with insurance companies and Trump allies supporting him. The civil fraud case involves Trump and his co-defendants being ordered to pay more than $464 million after an appeals court lowered the amount that had to be paid immediately. The bond was underwritten by Knight Specialty Insurance Company, chaired by billionaire Don Hankey, who has supported Trump financially in the past.
Trump also posted a bond of $91.6 million in a defamation case brought by writer E. Jean Carroll. This bond covers the amount Trump was ordered to pay for defaming Carroll, and it was underwritten by Federal Insurance Company, a subsidiary of Chubb. Chubb’s CEO Evan Greenberg previously served on Trump’s trade advisory committee and defended the company’s decision to underwrite Trump’s bond. Public records show Trump secured the bond using a Schwab investment account as collateral, which includes cash, stocks, and bonds that can be sold quickly.
The bond in the civil fraud case means the New York Attorney General Letitia James cannot seize Trump’s assets while he appeals the ruling. However, if Trump and his co-defendants lose their appeal, they will have to pay the full amount of $464.6 million, with interest continuing to accrue at a rate of nine percent per year. Forbes estimates that Trump has enough liquid assets to cover the lowered bond in the fraud case and the Carroll bond, but it falls short of the full amount he needs to pay off his debt in the fraud case.
Knight Specialty Insurance Company chair Don Hankey stated that they initiated the deal with Trump, whom he had never met, to provide the bond. Chubb CEO Greenberg defended the company’s decision to underwrite Trump’s bond. Trump has also paid $5.5 million in cash into a court-controlled account while he appeals the verdict in Carroll’s separate trial against him. In the civil fraud case, Judge Arthur Engoron ruled in favor of the attorney general, finding Trump and his co-defendants liable for fraud. The judge imposed monetary judgments against Trump and his sons, as well as non-monetary penalties, including barring them from running New York businesses for several years.
Overall, Trump’s posting of high-dollar bonds in these legal cases demonstrates his ability to secure financial support and protect his assets as he appeals the judgments against him. The involvement of insurance companies and Trump allies in underwriting these bonds highlights the complex financial and legal challenges facing the former president. The outcome of these appeals will determine the future financial obligations and business prospects for Trump and his co-defendants.
