The New York attorney general’s office has raised concerns regarding the $175 million bond posted by Donald Trump in a civil fraud case. Trump filed the bond after a New York appeals court reduced the required amount from $464 million to $175 million, granting him more time to secure the bond after facing rejections from 30 underwriters.
The attorney general’s office has filed a notice seeking additional information about the bond's financial soundness, as the insurer, Knight Specialty Insurance Company, is not regulated by New York state. A hearing has been scheduled for April 22 to address these concerns.
Trump provided $175 million in cash as collateral for the bond, which Knight Specialty Insurance Company agreed to underwrite. However, the company is not authorized to issue surety bonds in New York, prompting the attorney general’s office to request proof of the cash collateral's existence.
Trump's attorney accused the attorney general’s office of creating unnecessary obstacles, while lawyers familiar with bonds emphasized the importance of understanding the collateral supporting the bond.
Recent financial statements revealed that Knight Specialty Insurance Company had total assets of $539 million and $138 million in surplus to policyholders. The parent company reported total assets of $2.2 billion with $1 million in surplus.
The ongoing legal battle between Trump and the attorney general’s office has seen various developments, including requests for more transparency in bond negotiations and investigations into individuals associated with the Trump Organization.
This latest challenge underscores the complexity of the case and the scrutiny surrounding the bond posted by Trump in response to the civil fraud allegations.
