After going back and forth for weeks, Donald Trump’s legal team and the New York Attorney General’s Office have reached an agreement regarding the $175m bond in his civil fraud ruling. They have agreed to allow a California-based company to back the bond, on the condition that the collateral remains in cash, among other stipulations.
On Monday, Mr. Trump’s attorneys, including Alina Habba, and Letitia James’s office lawyers had a court hearing on the bond dispute. The hearing took place about 500 feet away from the Manhattan courtroom where the opening arguments for Mr. Trump’s first criminal trial were underway.
Ms Habba expressed her frustration after the hearing, stating that it was a complete waste of time and taxpayer dollars. She accused Ms James of filing unnecessary complaints about the bond, and even tried to draw comparisons with his criminal case.
“The American judicial system is disgraced by the use of two courts, criminal and civil, against one man simply because they cannot defeat him in the polls,” she expressed her discontent.
“According to Ms. James, she wanted to express her disagreement and suggest that our cash isn’t deemed valuable enough. She believes that such investigations are a waste of taxpayers’ money and are akin to a witch hunt.”
Ms. Habba, who accompanied Mr. Trump to criminal court following the bond hearing, echoed the sentiments of the former president, asserting that “he shouldn’t even be here today because he didn’t do anything wrong.”
The controversy surrounding the fraudulent bond revolved around the underwriter: Knight Specialty Insurance Company (KSIC), a California-based company that provided a last-minute lifeline to Mr. Trump. KSIC is a subsidiary of the Knight Insurance Group, which is chaired by billionaire Don Hankey.
Ms. James’s office expressed concerns regarding the bond’s specifics, stating that the company should have complete control over the collateral provided by Mr. Trump. They also noted that KSIC did not have authorization to conduct business in New York.
According to KSCI, they disagreed with the assertion and stated in their filing that they have the ability to do so because the funds were backed by a Charles Schwab account that was pledged to them.
After a quick hearing on Monday, Mr. Trump’s lawyers and Ms. James’s office reached an agreement. Under this agreement, the $175 million in collateral will remain in cash, with KSCI retaining control over it. Additionally, KSCI will appoint an agent to accept legal services on their behalf in New York.
Justice Arthur Engoron, the presiding judge for the hearing and civil fraud trial, has ruled in favor of allowing the bond to remain intact under the revised conditions.
“Ms. Habba expressed frustration with Ms. James, claiming that she attempted to argue that their cash was somehow inadequate. Ms. Habba felt that this was a waste of time. However, they eventually reached an agreement to keep everything the same and make some modifications to the terms. Ms. Habba emphasized that these kinds of investigations are a drain on taxpayer dollars, referring to them as a series of witch hunts.”
The bond in the civil fraud case ruling has made significant progress since Justice Engoron’s order in February. Mr. Trump was directed to pay $354 million, along with interest, following his civil fraud trial.
Justice Engoron concluded that Mr. Trump, along with his adult sons and former executives of the Trump Organization, were responsible for defrauding investors and banks in order to obtain more favorable terms.
Mr. Trump had intentions to challenge the ruling, but he was unable to proceed with an appeal unless he provided a substantial bond.
Mr. Trump sought assistance from various companies in his quest to cover the bond, which had reached a staggering $464 million by March. In his efforts to alleviate this financial burden, he made an appeal to a New York appellate court, requesting a reduction in the amount.
In a surprising turn of events, the court ruled in his favor, providing him with a much-needed victory. Not only did they grant him a 10-day extension, but they also significantly reduced the amount he had to pay to $175 million.
The new agreement’s terms are expected to be finalized by Friday.
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