New York Attorney General Letitia James has challenged the $175 million bond posted by former President Donald Trump in his civil fraud case. The bond, posted to appeal the court’s judgment against Trump, has come under scrutiny as James argues it might not meet New York’s legal requirements.
James’s 26-page filing, obtained by Fox News, focuses on the California-based Knight Specialty Insurance Company (KSIC), which issued Trump’s bond. She claims KSIC isn’t approved to do business in New York, questioning the company’s financial stability and ability to back up such a large bond.
According to the filing, KSIC’s policyholder surplus, a measure of financial stability, stands at $138,441,671. This is significant because New York state law limits the exposure of smaller insurers like KSIC to risks not exceeding 10% of their surplus. James argues that the $175 million bond far exceeds this limitation.
Additionally, James cited federal findings of irregularities within KSIC’s holding company structure, further casting doubt on the bond’s legitimacy. She also mentioned that KSIC doesn’t have an exclusive right to control the bond’s account, suggesting potential issues with how the bond is managed.
Given these factors, James asked the judge to void Trump’s bond and require him to post a new bond within 7 days of the court’s decision.
The dispute over the bond has broader implications for Trump’s appeal in his civil fraud case. The bond is intended to cover James’s $464 million judgment against Trump while the case is under appeal. The appellate court had recently reduced the bond requirement from $464 million to $175 million, allowing Trump to defer payment of the judgment pending appeal.
James’s filing raises questions about Trump’s ability to meet bond requirements and maintain his appeal. If the bond is voided and Trump fails to secure a new one, the state could take steps to enforce the original judgment, which may involve seizing his assets.
