- The attorney general’s office says Knight Specialty Insurance Company failed to ensure it could support the $175 million bond.
- James’ office asks Trump to post replacement bail within seven days of ruling
The New York Attorney General’s office asked a judge to void the $175 million bail obtained in the New York civil fraud case.
In a filing Friday, Attorney General Letitia James’ office said Trump and other defendants in the case failed to show there was enough identifiable collateral to support the bond.
Lawyers asked Judge Arthur Engoron to require Trump and other defendants to post replacement bail within seven days of ruling on the matter.
It comes after James raised questions earlier this month about the “sufficiency” of the $175 million bonus lodged as Trump presses forward with an appeal in his fraud case in New York.
New York Attorney General Letitia James’ office asked judge to reject Trump’s $175 million bail in civil fraud case
Trump in court on Friday for a separate case. The former president was found to have inflated the value of assets to receive more favorable loans in the New York civil fraud case and had to post $175 million bail while he appeals.
Friday’s 26-page filing notes that instead of Trump selecting a large national insurance company licensed in New York, he chose Knight Specialty Insurance Company (KSIC), “a small insurer that is not authorized to do business in New York.” and, therefore, it is not regulated. by the state insurance department.
He stated that the company has a total policyholder surplus of only $138 million and that Trump and KSIC failed to justify KSIC as collateral “in this extraordinarily large company” for several reasons.
Earlier this month, James raised questions about the “sufficiency” of the $175 million bonus given by California billionaire Don Hankey’s company as the clock ticked on Trump’s deadline to post bail in the case.
When time ran out, James indicated that his office was prepared to begin seizing Trump’s properties. The former president’s lawyers told the court that he was having trouble finding a company willing to guarantee an even higher bail of $464 million.
Hankey told DailyMail.com that he approached Trump after learning of his efforts to obtain bail for a larger court sentence, and then issued bail for the smaller amount after Trump’s team contacted him again.
Billionaire Don Hankey is known as the “king of subprime auto loans.” Trump’s appeal bond was provided by Hankey’s Knight Specialty Insurance Company
Earlier this month, James gave Trump’s lawyers an additional 10 days to “justify” the bail, while seeking assurances that the firm would be able to meet its obligation to support or pay her if Trump defaults on his court appeal.
KSIC provided the court with a financial statement as of December 31, 2023 that listed assets worth $539 million and a “surplus to policyholders” of $138 million.
In Friday’s filing, the Attorney General’s office argued that they failed to meet their burden of establishing that there is sufficiently secure collateral supporting the bond and said the court should not rely on Knight Insurance’s financial summary as evidence.
The New York Attorney General’s office also said Knight Insurance is not qualified to act as a surety because federal authorities have previously found that its administration had operated companies in violation of federal law on multiple occasions in recent years.
A hearing on the bond dispute is expected to be held Monday.
It comes as opening statements are also set to begin Monday in Trump’s separate criminal trial over hush money.