{"id":220667,"date":"2024-04-05T03:31:19","date_gmt":"2024-04-05T03:31:19","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/04\/05\/ny-ag-wants-trumps-lawyers-or-underwriter-to-justify-175-million-bond-in-civil-fraud-case\/"},"modified":"2025-06-25T17:19:16","modified_gmt":"2025-06-25T17:19:16","slug":"ny-ag-wants-trumps-lawyers-or-underwriter-to-justify-175-million-bond-in-civil-fraud-case","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/04\/05\/ny-ag-wants-trumps-lawyers-or-underwriter-to-justify-175-million-bond-in-civil-fraud-case\/","title":{"rendered":"NY AG wants Trump&#8217;s lawyers or underwriter to &#8216;justify&#8217; $175 million bond in civil fraud case"},"content":{"rendered":"<p> [ad_1]<br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/04\/GettyImages-2133980445-e1712282100464.jpg?w=2048\" \/><\/p>\n<p>Days after former President Donald Trump\u00a0<a href=\"https:\/\/apnews.com\/article\/donald-trump-civil-fraud-trial-feb0593a5bbd3837edc0db195554eda1\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">posted a $175 million bond<\/a>\u00a0to block New York state from imminently collecting on a huge\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-civil-fraud-trial-engoron-new-york-646814bb4945306f19a22f38fdb246a5\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">civil fraud judgment<\/a>, state lawyers Thursday called for more information on the bond\u2019s bona fides.<\/p>\n<div>\n<p>State Attorney General Letitia James\u2019 office filed papers giving Trump\u2019s lawyers or the bond underwriter 10 days to \u201cjustify\u201d the bond \u2014 essentially, to show that the company can make good on it. That could mean disclosing more about the collateral Trump provided.<\/p>\n<p>A hearing was set for April 22.<\/p>\n<p>One of Trump\u2019s lawyers, Christopher Kise, said James was trying to provoke a \u201cbaseless public quarrel in a desperate effort to regain relevance\u201d after an appeals court last month\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-civil-fraud-case-verdict-penalty-appeal-8447c48d0436083737204b13401438d2\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">significantly cut the amount<\/a>\u00a0of the bond needed to hold off collection.<\/p>\n<p>\u201cYet another witch hunt!\u201d Kise wrote in an email.<\/p>\n<p>A message seeking comment was left for the underwriter, Knight Specialty Insurance Co.<\/p>\n<p><a href=\"https:\/\/apnews.com\/article\/trump-fraud-case-appeal-millions-bond-explained-b98f2ab687dd642bad1821d868d2ccec\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">The bond<\/a>, posted Monday, at least temporarily stopped the state from\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-letitia-james-fraud-lawsuit-judgment-verdict-63e643d0fe098cc1ac178c003f21a40d\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">potentially seizing Trump\u2019s assets<\/a>\u00a0to satisfy the more than $454 million that he owes after losing a lawsuit trial.\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-fraud-trial-new-york-44d7ce912fa2434c452e2b5dd6139789\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">The case<\/a>, brought by the Democratic attorney general, alleged that Trump, along with his company and key executives, defrauded bankers and insurers by lying about his wealth.<\/p>\n<p>The ex-president and presumptive Republican nominee denies the claims and is\u00a0<a href=\"https:\/\/apnews.com\/article\/trump-new-york-civil-fraud-appeal-letitia-james-2f8cc521e00e4a34a1342b961c1416ce\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">appealing the judgment<\/a>.<\/p>\n<p>By posting the bond, Trump aimed to stop the clock on enforcement of the judgment during his appeal. But it hasn\u2019t gone entirely smoothly.<\/p>\n<p>First, the court system kicked back Monday\u2019s filing for more paperwork, including a financial statement from Knight Specialty Insurance. That was filed Thursday, showing that the company has over $539 million in assets and related reinsurer Knight Insurance Co. Ltd. has over $2.1 billion.<\/p>\n<p>Then James\u2019 office filed notice that it \u201ctakes exception to the sufficiency\u201d of the bond \u2014 a move that judgment winners can make to get more information from out-of-state underwriters, in some circumstances.<\/p>\n<p>Knight Specialty Insurance is a Wilmington, Delaware-based part of the Los Angeles-based Knight Insurance Group.<\/p>\n<p>The attorney general\u2019s notice doesn\u2019t request specific information. But \u201cjustifying\u201d generally means demonstrating that the underwriter is financially sound and able to pay the bond amount if the judgment is upheld.<\/p>\n<p>A state appeals court also has held, in an unrelated case, that there needed to be a showing that a bond was \u201csufficiently collateralized by identifiable assets.\u201d<\/p>\n<p>Knight Insurance Group Chairman Don Hankey told The Associated Press Monday that cash and bonds were used as collateral for Trump\u2019s appellate bond.<\/p>\n<p>Eric Trump, a son of the former president and a top executive in his company, said in a social media post Thursday that the bond was backed entirely by cash.<\/p>\n<p>The attorney general\u2019s objection \u201cis just another example of the absurdity and foolishness that have been the underlying theme throughout this circus of a case,\u201d the younger Trump wrote on X, former <a href=\"https:\/\/fortune.com\/company\/twitter\/\" target=\"_blank\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">Twitter<\/a>.<\/p>\n<p>He and his brother, a fellow Trump Organization executive vice president, Donald Trump Jr. were also defendants in the fraud suit. They were found liable and ordered to pay $4 million apiece.<\/p>\n<p>All told, the judgment against Trump, the sons and other defendants totals more than $467 million, growing daily with interest.<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\">Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. <a href=\"https:\/\/fortune.com\/newsletters\/ceo-weekly-europe?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=ceo_weekly_europe\" target=\"_self\" rel=\"noopener\" class=\"sc-76811d68-0 jyYcOa\">Sign up<\/a> for free.<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/04\/04\/ny-trump-lawyers-underwriter-justify-bond\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Days after former President Donald Trump\u00a0posted a $175 million bond\u00a0to block New York state from imminently collecting on a huge\u00a0civil fraud judgment, state lawyers<\/p>\n","protected":false},"author":1,"featured_media":220668,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[149],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/220667"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=220667"}],"version-history":[{"count":1,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/220667\/revisions"}],"predecessor-version":[{"id":330669,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/220667\/revisions\/330669"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/220668"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=220667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=220667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=220667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}