Emmanuel OchayiNew York State Attorney General Letitia James demanded further details regarding the $175 million bond posted by former President Donald Trump.
This move comes days after Trump’s legal team secured the bond to stave off the imminent collection of a massive civil fraud judgment.
Join our WhatsApp ChannelIn papers filed on Thursday, James’ office requested Trump’s lawyers or the bond underwriter to provide additional justification for the bond’s validity within 10 days. This includes disclosing more information about the collateral provided by Trump. A hearing is scheduled for April 22 to address this matter.
Christopher Kise, one of Trump’s lawyers, accused James of attempting to incite a “baseless public quarrel” to regain relevance. Kise labeled the scrutiny as “yet another witch hunt.”
Knight Specialty Insurance Co., the underwriter responsible for the bond, has yet to comment on the matter.
The bond, posted earlier this week, temporarily halted the state’s efforts to seize Trump’s assets to settle the $454 million judgment resulting from a lawsuit alleging fraud. Trump and his company deny the accusations and are appealing the verdict.
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Although the bond aimed to halt enforcement during the appeal, complications arose. Initially, the filing was sent back by the court for additional paperwork, including a financial statement from Knight Specialty Insurance. This was submitted on Thursday, revealing substantial assets of the company and its related reinsurer.
However, James’ office raised objections to the sufficiency of the bond, signaling a request for more information from the out-of-state underwriters. Knight Specialty Insurance, based in Delaware, is part of the Knight Insurance Group headquartered in Los Angeles.
While the attorney general’s notice didn’t specify the required information, it typically entails demonstrating the underwriter’s financial stability and ability to fulfill the bond amount if the judgment stands.
Eric Trump, son of the former president and a key executive in his company, asserted that the bond was fully backed by cash in a social media post on Thursday.
The ongoing legal saga doesn’t just involve the former president; his sons Eric Trump and Donald Trump Jr. were also found liable in the fraud case, each ordered to pay $4 million. With the judgment against Trump and his associates exceeding $467 million, interest continues to accrue daily.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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