New York AG seeks to void Trump business fraud bond

New York AG seeks to void Trump business fraud bond

Former President Donald Trump returns from a lunch break at Manhattan Criminal Court as jury selection continues April 18, 2024 in New York.

Jabin Botsford | Reuters

The New York attorney general’s office on Friday asked a judge to effectively void a $175 million bond posted by former President Donald Trump in order to receive a much larger amount of damages in his civil business fraud case while he goes against the judgment is appealed.

The AG’s office said in a filing that Trump and other defendants in the case failed to demonstrate that there was enough identifiable collateral to support the Manhattan Supreme Court’s bond.

The filing states that the guarantor Trump used to obtain the bond, Knight Specialty Insurance Company, is “a small insurer that is not authorized to do business in New York and therefore not authorized by.” is regulated by the state’s insurance department, which has never previously issued a surety bond in New York or in any other jurisdiction in the last two years, and has total excess insurance for policyholders of only $138 million.”

The filing rejects a joint request by Trump and KSIC to substantiate the insurer as the surety company holding the bond.

Attorneys for AG Letitia James asked Judge Arthur Engoron to order Trump and other defendants to post replacement bail within seven days of the decision in the matter. James’ lawsuit against Trump resulted in a massive civil judgment against him.

A bond dispute hearing is scheduled for Monday.

In February, Engoron found Trump, the Trump Organization and other defendants liable for fraud, saying they had for years falsely inflated the value of real estate assets with the goal of increasing Trump’s net worth. These measures, in turn, helped the company obtain better credit terms and other financial benefits.

Trump personally was ordered to pay $454 million in damages, an amount that grows daily with interest. He is appealing the verdict.

Trump was required under New York law to post bail to guarantee the verdict if he appeals the decision.

This is breaking news. Please check back for updates.

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2024-04-19 22:13:50