New York Attorney General Letitia James is requesting a judge to invalidate former President Donald Trump’s bond in his civil fraud case. She is raising concerns about the financial backing of the company that issued the bond.
In a 26-page filing submitted prior to the scheduled hearing on Monday, James raised concerns regarding the ability of Knight Specialty Insurance Company to obtain the $175 million bond. She also contended that the company should have complete control over the collateral provided by the former president.
James has expressed concerns about KSIC, stating that the insurer is not authorized to conduct business in New York and therefore not under the regulation of the state’s insurance department. Furthermore, she highlights that the company has never written a surety bond in New York or any other jurisdiction in the past two years. Additionally, she points out that KSIC has a total policyholder surplus of just $138 million.
James expressed his criticism towards the apparent control that Trump’s team had over the collateral used to support the bond.
According to the statement, KSIC does not currently possess an exclusive right to control the account. It will only gain control if it exercises its right to do so with a two-day notice.
Trump’s lawyers and KSIC did not provide any comment in response to the request.
Alina Habba, attorney for Trump, expressed optimism about the former president’s appeal and his determination to overturn the unfair verdict when his bond was posted.
New Filing Seeks More Information About Former President’s Bond
Following a notice filed by James earlier this month, new information has been sought regarding the bond of the former president. The filing requested Trump’s lawyers or the insurance company to either “file a motion to justify the surety bond” or furnish additional details about the collateral provided by Trump within a period of 10 days.
In March, a state appeals court reduced the bond for Trump and his co-defendants to $175 million, a significant decrease from the original amount of $464 million. Out of the initial sum, Trump was responsible for $454 million, which constituted the majority. Throughout the case, the former president has consistently criticized the charges brought against him and maintained his innocence.
James has filed his documents at the same time when Trump was present in the courtroom for his hush money case in New York. In this case, Trump is facing 34 counts of falsifying business records. Additionally, a state appeals court judge has denied Trump’s request for an emergency stay of the trial. The trial has already started with a seated jury, and arguments are scheduled to commence on Monday. Trump has pleaded not guilty to all the charges.