The New York Attorney General’s office is questioning the $175 million bond that Donald Trump posted in a civil fraud case and has requested more information to verify its financial stability. Trump filed the bond after a court lowered the amount he needed to post from $464 million. The Attorney General’s office has filed a notice seeking additional information from Trump or the underwriter due to concerns about the insurer not being regulated by New York State. A hearing has been set for April 22 to address these concerns.
Knight Specialty Insurance Company, based in California, agreed to underwrite the bond and stated that Trump provided $175 million in cash as collateral. Legal experts suggest that it is reasonable for the Attorney General’s office to want to understand the collateral used to support the bond. Trump may need court approval for Knight Specialty or pair it with another authorized company in New York to address these concerns. The Attorney General’s office has requested additional information within 10 days for the bond to remain in effect.
By posting the bond, Trump has prevented the Attorney General’s office from seizing assets to enforce the judgment against him. Trump is appealing the judgment and denying liability for fraud. Additional information provided by Trump shows that Knight Specialty Insurance Company has total assets of $539 million and $138 million in surplus, while its parent company has total assets of $2.2 billion with a $1 million surplus. New York law prohibits a company from underwriting a bond for more than 10% of its surplus cash.
Trump’s attorney has accused the Attorney General’s office of trying to cause trouble for the former president. The ongoing battle between Trump and the Attorney General’s office has taken another turn, with the office also seeking a more direct line into the bond negotiations. The office has requested the judge to authorize the independent monitor overseeing the Trump Organization to share information with any party in the case and investigate the guilty plea of Allen Weisselberg, the former CFO of the Trump Organization, who admitted to lying during the state’s investigation.
Overall, the dispute over the bond in the civil fraud case involving Donald Trump continues to escalate, with the Attorney General’s office questioning the financial stability of the $175 million bond. Trump’s decision to use Knight Specialty Insurance Company as the underwriter has raised concerns due to the company not being authorized to issue surety bonds in New York. The Attorney General’s office is seeking additional information to verify the collateral used to support the bond and has set a hearing to address these concerns. The ongoing legal battle between Trump and the Attorney General’s office shows no signs of slowing down, with accusations from both sides of baseless actions and attempts to manipulate the situation in their favor.
