Letitia James demands proof that company that posted Trump's bond is 'financially sound'
New York Attorney General Letitia James submitted a filing on Thursday asking for proof that the company covering Donald Trump's $175 million bond in his fraud case is actually "financially sound."
James told the New York City civil court — where Trump was found liable for damages upwards of $464 million — that she had serious concerns about Knight Speciality Insurance Company's agreement with the former president.
The filing said she, “Hereby takes exception to the sufficiency of the surety,” noting the Knight Specialty Insurance Company is trying to operate “without a certificate of qualification.” In New York, state regulators are required to meet certain standards, guaranteeing they are “solvent, responsible and otherwise qualified to make policies or contracts of the kind required.”
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Since the company is out of California, New York doesn't have that information. James explained in her filing that the company must prove that they are financially able to cover Trump's hefty sum if he loses the appeal.
Trump's bond, initially set at $454 million, was cut to $175 million by an appeals court after he argued that it was too much to pay.
The new amount was bonded by the Knight Specialty Insurance Company. When it fronted the money, it gave the court documents Thursday showing its assets amounted to $537 million as of Dec. 31, 2023.
"What are the specific identifiable assets that Donald Trump posted to ensure that if they win on appeal, they will get back this $175 million and up to the value of the judgment that Judge Arthur Engoron had ordered, which at this point stands over $454 million if that judgment's upheld?" asked MSNBC legal analyst Lisa Rubin.
Knight has ten days to respond to the Attorney General's Office.
Trump and his associates were found liable for fraud after they inflated the value of his properties to secure favorable rates for loans and insurance.
See Rubin's analysis from MSNBC below or at the link here.
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