Jean MartinThe New York Attorney General’s office has filed a motion to invalidate a $175 million bond posted by former President Donald Trump to secure a larger monetary damage award in his civil business fraud case. This move comes as Trump appeals the judgment against him.
Reasoning Behind the Request:
The AG’s office argues that Trump and other defendants have not provided sufficient collateral to support the bond.
The surety company, Knight Specialty Insurance Company (KSIC), lacks the necessary credentials to issue such a bond and has a relatively small financial capacity, raising worries about its ability to cover the judgment.
Opposition to Surety Company:
The filing highlights that KSIC is not authorized to conduct business in New York and has limited experience issuing surety bonds. Additionally, its policyholder surplus is considerably lower than the bond amount, further casting doubt on its reliability.
Attorney General Letitia James’ legal team has requested the court to mandate that Trump and other defendants secure a replacement bond within seven days if the current bond is voided.
The lawsuit against Trump resulted in a substantial civil judgment against him, and the AG’s office is seeking to ensure proper financial backing during the appeal process.
Upcoming Hearing:
A hearing on the bond dispute is scheduled for Monday, where Judge Arthur Engoron will consider the arguments presented by both parties. The outcome of this hearing could have important implications for the ongoing legal proceedings.
In February, Judge Engoron ruled Trump and other defendants liable for fraud, leading to a multimillion-dollar damages award. Trump is appealing the decision, and the requirement to post a bond is part of the legal process in New York.
