The New York attorney general’s office has asked a judge to vacate the $175 million bond obtained by former President Trump to delay payment of larger damages in his civil fraud case.
State lawyers said in court filings Friday that the former president and his co-defendants — the Trump Organization and its top executives, including his two eldest sons — failed to prove that bail used by Trump to secure bail actually had the money to secure it.
They also say the defendants have failed to demonstrate that “sufficiently secure and verifiable” security supports the bond.
“Based on the foregoing, the People respectfully request that the court deny Movants’ motion to show cause for bond, declare the bond of no effect, and order that any replacement bond be posted within seven days, along with any other additional relief granted by the court. deems necessary and appropriate,” lawyers for New York Attorney General Letitia James (D)’s office wrote in a 26-page filing.
Trump’s bail was guaranteed by California-based Knight Specialty Insurance Company.
The state’s lawyers argued that Knight is a “small insurer that is not licensed to write business in New York” and that, until Trump, it had “never issued a bond in New York “.
The company has a total policyholder surplus of just $138 million, the filing shows. Under New York state law, companies like Knight cannot expose themselves to debt – such as a bond – or potential loss greater than 10% of their surplus.
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the loss limit on any risk KSIC is permitted to underwrite is $13.8 million,” the lawyers wrote. “The face amount of the bond exceeds this limit by $161.2 million.”
The State also argued that because Trump still has access to the $175 million in cash he placed in an account as collateral, the court should conclude that he and his co-defendants “failed to demonstrate that the obligation is “sufficiently guaranteed by identifiable persons”. assets.'”
Judge Arthur Engoron ruled earlier this year that Trump, the Trump Organization and top executives conspired to alter Trump’s net worth for tax and insurance benefits. He ordered them to pay a total of $464 million, plus interest.
Trump’s bond ensures that James’ office cannot collect the multimillion-dollar judgment against the defendants while they appeal and suspends other sanctions. The bail amount was initially set at the full judgment amount, but an appeals panel agreed to lower the price when Trump’s lawyers said it would be “impossible” for the former president to obtain bail complete.
The judge is expected to hold a hearing Monday to discuss the issues raised by the attorney general’s office. The hearing is expected to take place alongside opening statements in Trump’s criminal trial in New York.
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