NY AG asks Trump civil fraud judge to declare $175M bond ‘without effect’

Source: The Hill | April 19, 2024 | Ella Lee

The New York attorney general’s office has asked a judge to void the $175 million bond former President Trump secured to put off paying the larger monetary damage award in his civil fraud case.

State lawyers said in court filings Friday that the former president and his co-defendants — the Trump Organization and its top executives, including his two eldest sons — failed to prove the surety Trump used to obtain the bond actually has the money to back it.

They also say the defendants did not show that “sufficiently secure and ascertainable” collateral backs the bond.

“Based on the foregoing, the People respectfully request that the Court deny Movants’ motion to justify the surety, declare the Bond to be without effect and order that any replacement bond be posted within seven days, along with such other and further relief the Court deems necessary and appropriate,” lawyers with New York Attorney General Letitia James’s (D) office wrote in a 26-page filing.

Trump’s bond was secured by the California-based Knight Specialty Insurance Company.

State lawyers argued Knight is a “small insurer that is not authorized to write business in New York” and, until Trump, had “never before written a surety bond in New York.”

The company has a total policyholder surplus of just $138 million, the filing says. Under New York state law, companies like Knight can’t expose themselves to liabilities — like a bond — or any potential loss greater than 10 percent of their surplus.

……..

Viewing 3 posts - 1 through 3 (of 3 total)
  • Discussion
  • Consistent #60433

    Consistent #60460

    Consistent #60461

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.