New York state lawyers have requested additional information regarding the $175 million bond posted by former President Donald Trump to prevent the state from collecting a significant civil fraud judgment. The state Attorney General's office has given Trump's legal team or the bond underwriter 10 days to justify the bond's legitimacy, potentially by disclosing more details about the collateral provided by Trump. A hearing has been scheduled for April 22 to address this matter.
Trump's lawyer, Christopher Kise, accused Attorney General Letitia James of attempting to spark a baseless public dispute to regain relevance following a recent reduction in the required bond amount by an appeals court. The bond, posted on Monday, temporarily halted the state from seizing Trump's assets to satisfy the $454 million judgment resulting from a lawsuit alleging fraud against bankers and insurers.
Despite the bond posting, challenges have arisen. The court initially requested additional paperwork, including a financial statement from the underwriter, Knight Specialty Insurance Co., which was submitted on Thursday. The filing revealed that the company and its related reinsurer have substantial assets.
James' office has expressed concerns about the sufficiency of the bond and has requested further details to ensure the underwriter's financial stability. The bond underwriter, Knight Specialty Insurance Co., is part of the Knight Insurance Group based in Wilmington, Delaware.
Chairman Don Hankey of Knight Insurance Group stated that cash and bonds were utilized as collateral for Trump's appellate bond. The ongoing legal proceedings will continue to unfold as both parties navigate the complexities of the case.
