New York Attorney General Letitia James is urging the judge in former President Donald Trump’s civil fraud case to declare the $175 million bond posted by a surety company on his behalf as “without effect” and to post a new bond with stronger collateral, while also raising doubts about the credibility of the firm involved.
On April 1, Knight Specialty Insurance Company (KSIC) issued a $175 million bond for President Trump, enabling him to forestall the potential seizure of his properties or assets.
This move came in response to a $464 million judgment (including interest) in a case alleging he inflated asset values to secure more favorable loan terms.
Ms. James, a Democrat who filed the civil fraud case against President Trump, initially questioned the “sufficiency” of the $175 million bond in a court filing days after KSIC posted it.
This prompted the former president’s attorneys to argue in response that the company is well-funded and has ample collateral to support the bond.
However, Ms. James has rebuffed that claim, presenting several arguments against KSIC’s assertion in a court filing on April 19.
She is urging New York Supreme Court Justice Arthur Engoron, the presiding judge, to invalidate the bond and mandate a replacement to be posted within seven days.
KSIC did not respond immediately to a request for comment.
Justice Engoron scheduled a hearing for April 22 to address the issue of the bond.
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