As former President Donald Trump appeals a fraud judgment, a former federal prosecutor suggests that an insurance company may struggle to post a required $175 million bond, potentially allowing enforcement actions against Trump’s properties to proceed.
Responding to attorney Dave Kingman’s assertion that Knight Specialty Insurance would likely be unable to post the bond for Trump, Eric Lisann weighed in, indicating potential consequences for both Trump and the insurance company.
Knight Specialty’s filings were dismissed by a New York court for lacking sufficient documentation about its funding source. The company resubmitted new documentation on April 4th.
Former federal prosecutor Lisann expressed doubts about Knight Specialty’s ability to post the bond for Trump, suggesting that the company may not have the liquidity or collateral to fulfill its obligation. If Knight Specialty fails to provide the bond, it could face liability for the entire amount of the judgment against Trump.
Billionaire owner Don Hankey has previously claimed that his business could provide the necessary funds to Trump.
Meanwhile, attorney Dave Kingman stated that Knight Specialty’s issues with posting the bond make it unlikely that Trump will receive a new bond, leaving Knight Specialty liable under the existing bond.
The question remains whether Knight Specialty, based in Delaware, can fulfill its obligation in New York.
Despite Knight Specialty’s financial strength rating being raised by AM Best, questions persist about its ability to meet its obligations in this specific case.
Trump’s legal woes stem from a civil fraud ruling that found him, his adult sons, and The Trump Organization responsible for inflating the value of assets to secure favorable business deals. Trump denies any wrongdoing and is appealing the ruling.
