New York Attorney General Letitia James Pushes Judge to Void Trump’s $175 Million Bond
New York Attorney General Letitia James is making moves in former President Donald Trump’s civil fraud case, pushing the judge to void the $175 million bond that Trump previously posted to appeal his New York civil lawsuit. In a 26-page filing obtained by Fox News Digital, James questions whether the insurance company backing the bond has sufficient funds to support it.
The bond was posted by California-based Knight Specialty Insurance Company (KSIC), but James argues that the insurer is “not authorized” to write business in New York. She points out that the company is a small insurer with a total policyholder surplus of just $138 million, which falls short of the requirements set by New York state law.
According to James, smaller businesses like KSIC are not permitted to expose themselves to liabilities greater than 10 percent of their surplus. The face amount of the bond exceeds this limitation by $161.2 million, raising concerns about the company’s ability to cover the bond.
Furthermore, James highlights that KSIC’s management has been found by federal authorities to have violated federal law by operating affiliated companies within the holding company structure. She also points out that the company sends 100% of its retained insurance risk to affiliates in the Cayman Islands, a practice known as “shadow insurance” that artificially bolsters its surplus.
In light of these issues, James is prepared to ask the judge to seize Trump’s assets if he cannot pay the $354 million judgment handed down in his civil fraud case. The judge is expected to hold a hearing on Monday to discuss the issues raised by the attorney general’s office, running in conjunction with opening statements in Trump’s New York criminal trial.
Trump has repeatedly denied any wrongdoing in the case, calling it a “witch hunt.” The judge previously ruled that Trump and the Trump Organization had committed fraud while building a real estate empire, deceiving banks, insurers, and others by overvaluing assets and exaggerating net worth on paperwork used in deals and financing.
The case against Trump, his children, and his businesses alleges fraudulent business practices and misrepresentation on financial statements. Trump has pleaded not guilty on all counts.
Stay tuned for updates on this developing story.
