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A New York judge decided on Monday that the $175 million bond judgment obtained by former President Donald Trump from his civil trial will remain in effect, rejecting an attempt by New York Attorney General Letitia James to have it overturned.
On Monday, James’ attorneys contended that the court ought to nullify Trump’s reduced $175 million verdict in his non-jury civil fraud trial. James wondered if Knight Specialty Insurance, the company that posted the large bond, could pay the bond if it was required.
Nevertheless, the court decided that the bond would stand and decided against James, Fox News reported.
The $175 million must be in cash, the court ruled, not in mutual funds or securities, the value of which is subject to change. The court ruled that Knight Insurance would be able to keep control of the account, but they could not trade or transfer the money.
The court further decided that Knight Insurance could not alter the agreement without the court’s consent and mandated that Knight Insurance send James a monthly financial statement that reflected the $175 million in cash.
The Monday hearing lasted for about sixty minutes.
Attorneys for Trump are contesting the ruling of New York Judge Arthur Engoron, who found Trump liable for fraud and ordered him to pay $454 million.
While Trump challenged Engoron’s decision, an appeals court reduced the $454 million judgment to $175 million.
The former president might be responsible for the whole $454 million if Trump’s appeal is unsuccessful. James may then be able to seize his real estate holdings.
NY AG James petitioned the judge overseeing Trump’s civil fraud case to nullify the $175 million bond posted by a surety company on his behalf, citing concerns about its adequacy and questioning the firm’s credibility.
Knight Specialty Insurance Company (KSIC) posted a $175 million bond on April 1 on behalf of Trump. This bond shields his properties and assets from potential seizure following a $464 million judgment (including interest) in a case alleging he inflated asset values for improved loan terms, the outlet reported.
James, who filed the civil fraud case against Trump, questioned the adequacy of the $175 million bond in a court filing shortly after KSIC posted it. In response, Trump’s attorneys argued that the company is sufficiently capitalized and has ample collateral to support the bond.
In an April 19 court filing, James refuted that claim, presenting several arguments against KSIC’s assertion. She requested the presiding judge, New York Supreme Court Justice Arthur Engoron, to declare the bond “without effect” and mandate a replacement bond to be posted within seven days.
Engoron has set an April 22 hearing date for arguments in the case, a development that comes as Trump’s hush money trial is scheduled to begin in Manhattan on Monday.
The Epoch Times added:
In response, President Trump’s lawyers filed a motion on April 15 asking the judge to dismiss Ms. James’s objections to the bond, while laying out a series of arguments why they believe the surety to be valid.
President Trump’s counsel pointed out that there’s no legal requirement for a surety company to be an “admitted carrier” in New York State to provide the bond.
They also argued that the company is well-capitalized, with over $539 million in assets, $138 million in equity—plus having access to over $2 billion in assets and $1 billion in equity.
Separately, Trump has made it clear he has nothing to hide and is more than willing to “tell the truth” if he’s called to testify during his hush money trial.
