The New York Attorney General’s office wants a judge to cancel a $175 million bond that former President Donald Trump put up to cover a much bigger money award in his civil business fraud case while he appeals.
The AG’s office says Trump and others involved in the case haven’t proven there’s enough collateral to back the bond in the Manhattan Supreme Court.
They point out that the insurance company, Knight Specialty Insurance Company, Trump used for the bond is a small insurer not allowed to do business in New York.
They say it hasn’t issued bonds in New York or anywhere else for the past two years, and it only has $138 million in surplus.
The filing argues against Trump and KSIC’s joint motion to justify the insurer as the surety company holding the bond.
Attorney General Letitia James’ lawyers want Judge Arthur Engoron to make Trump and others find a new bond within a week of ruling on the matter. James sued Trump, which led to a big judgment against him.
A hearing on the bond dispute will happen on Monday.
Back in February, Engoron found Trump, the Trump Organization, and others guilty of fraud, saying they lied about the value of real estate assets for years to make Trump seem richer. This helped the company get better loan terms and other benefits.
Trump was ordered to pay $454 million in damages, and this amount keeps growing with interest. He’s appealing the verdict.
Under New York law, Trump had to put up a bond to cover the judgment while he appealed.
