According to legal analyst Lisa Rubin on Sunday, New York Attorney General Letitia James has expressed “reasonable questions” regarding Donald Trump’s $175 million bond in his civil fraud case.
In February, Judge Arthur Engoron delivered a ruling in favor of James’ lawsuit against Trump, his sons, Eric Trump and Donald Trump Jr., and The Trump Organization. The lawsuit alleged that the former president had exaggerated the value of his properties and his personal net worth by billions of dollars on financial statements submitted to banks and insurers in order to facilitate deals and obtain loans. Engoron ordered the former president to pay a total of $454 million, which comprises $355 million in penalties and almost $100 million in interest.
Donald Trump, the presumptive Republican nominee for the 2024 presidential election, firmly asserts his innocence and is actively appealing the ruling. He characterizes the entire case and trial against him as a politically motivated witch hunt.
Knight Specialty Insurance Company (KSIC), owned by the privately held Hankey Group, took action on Monday to safeguard Trump’s assets and bank accounts by posting a bond. Don Hankey, the chair of both KSIC and the Hankey Group, spearheaded this move.
The court rejected the documents included in the $175 million bond due to the absence of a current financial statement. James later expressed concerns regarding the adequacy of the bond.
According to a source from James’ office, Trump’s court filing was a result of his decision to utilize an insurance company that is not authorized in New York. As a consequence, the company is unable to obtain a certificate of qualification from the Department of Financial Services (DFS).
The attorney general’s office has submitted a notice of exception to the surety, demanding that either Trump and/or his legal team or the surety prove, through a motion, their financial capability to fulfill the obligations of the bond.
In an effort to get the process moving again, KSIC has refiled its paperwork.
During Sunday’s episode of MSNBC’s “The Weekend,” legal analyst Rubin discussed President Trump’s bond. Rubin pointed out that Hankey, who put up the bond for Trump, received conflicting answers regarding the collateral accepted by his company.
Don Hankey has been quite open in several interviews, including our own, but his exact statements have varied slightly. In one interview, he mentioned receiving the payment in cash, while in another, he mentioned receiving cash along with a small portion of investment-grade bonds, although he couldn’t recall the details accurately, as shared by Rubin.
Rubin emphasized that if someone had pledged collateral to her, particularly a substantial amount like $175 million, she would definitely remember what the collateral looked like. She acknowledged that James had valid questions to ask in this situation.
In a recent court filing, James’ office has requested that Trump or the bond underwriter provide further justification for the bond. This could potentially involve disclosing more information regarding the collateral that the former president presented in exchange for KSIC’s support.
Hankey expressed his surprise at James questioning the bond, stating that he was taken aback by the fact that they were scrutinizing their bond and searching for reasons to create problems with their instrument.
According to Forbes, who also interviewed Hankey, Trump’s collateral to secure the loans consisted of a combination of cash and investment-grade bonds.
“This is the essence of Knight Insurance’s work. Prior to this encounter, I had never had the opportunity to meet Donald Trump in person or engage in a phone conversation with him. However, when I became aware of his requirement for a loan or bond, I recognized it as a perfect fit for our expertise. Consequently, we initiated contact, and much to our delight, he promptly responded,” Hankey revealed in an interview with Forbes.
Hankey’s statement to ABC News contradicts the claim made earlier. According to the outlet, Hankey stated, “It was a relatively low number, and Donald Trump put up all the collateral in cash.”
A court hearing to discuss the bond details was scheduled for April 22 by Engoron.
