Trump says bond in civil fraud case is financially sound
Former President Trump’s lawyers said in a filing Monday evening that the $175 million bond in his New York civil fraud case is financially sound, pushing for the judge to dismiss the attorney general’s most recent challenge.
Trump said the bond, secured by Knight Specialty Insurance Company (KSIC), is backed by his Charles Schwab account, which is collateralized by more than $175 million, per the filing. It also noted that the insurance company has access to “more than $2 billion in assets and $1 billion in equity” and it’s backed by its parent company.
The notice from Trump’s lawyers comes after New York Attorney General Letitia James (D) questioned the qualifications of the company. State lawyers wrote in a brief, just days after Trump posted the bond, that they take “exception to the sufficiency of the surety” of the bond secured by the insurance company.
Lawyers asked Trump to prove that the company is financially capable of paying the massive bond amount if the former president loses on appeal.
Monday's filing responded by saying it is “inconceivable that any shortfall could arise” since the bond is secured by the amount in cash and the company has an agreement with its parent company, Knight Insurance Company, to cover “100% of KSIC’s risk."
Trump, along with his business and top executives, were ordered to pay $464 million, plus interest, after Judge Arthur Engoron ruled that they conspired to alter the former president's net worth to receive better tax and insurance benefits.
He was later ordered to post a $175 million bond in the case after his lawyers said it would not be possible to find a bond to cover the full amount.
The bond from the insurance company essentially saved Trump from James collecting the judgement and pauses other penalties in the case.
Engoron has scheduled a hearing for April 22 to discuss the matter, but Trump’s lawyers said the “documentary evidence in support of justification is overwhelming and obviates any need for a hearing to set aside the exception or to justify KSIC as surety.”
The attorney general’s request was “taken unnecessarily and should be set aside with costs,” the filing said.