The New York Attorney General’s office has asked the judge in Donald Trump’s civil fraud case to reject the $175 million bond he obtained to stave off even steeper fines.
In a 26-page filing signed by Attorney General Letitia James, lawyers for the state argued that Trump, the Trump Organization, and its top executives had failed to prove that the management of the bond met the “requirements of trustworthiness and competence,” and argued that Judge Arthur Engoron should find the bond to be “without effect.”
The AG’s office argued that California-based Knight Specialty Insurance Company was a “small insurer that is not authorized to write business in New York” and had “never before written a surety bond in New York,” before they penned the massive loan to Trump.
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Lawyers also wrote that based on KSIC’s surplus, the insurer wasn’t allowed to write a check anywhere near that big.
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the filing said. “The face amount of the bond exceeds this limitation by $161.2 million.”
Additionally, the state’s lawyers argued that Trump’s team could not demonstrate that they had the assets for collateral. Trump’s ability to secure this bond saved him, the Trump organization, and its top executives from having to pay the hefty $464 million sum Judge Engoron ordered them to pay. If Judge Engoron declares the bond to be without effect, AG James requested Trump come up with another surety within seven days.
Justice Engoron is expected to hold arguments on this case Monday at 10 a.m.
