New York (AP) – The legal battle between former President Donald Trump and the state of New York continues as state lawyers challenge the validity of a $175 million bond posted by Trump to delay the collection of a civil fraud judgment against him. The office of State Attorney General Letitia James has called for additional information on the bond’s legitimacy, giving Trump’s lawyers and the bond underwriter 10 days to provide justification for the bond. A hearing regarding the matter is scheduled for April 22.
The bond was posted by Trump earlier this week, temporarily preventing the state from seizing his assets to settle the more than $454 million debt resulting from a lawsuit trial. The lawsuit, led by the Democratic attorney general, accused Trump, his company, and key executives of deceiving lenders and insurers about his wealth. Trump, who denies the allegations, is currently appealing the court’s decision.
Despite Trump’s efforts to halt enforcement of the judgment through the bond, complications have arisen. The court initially requested more documentation from Knight Specialty Insurance, the company backing the bond. In response, the insurance company submitted financial statements detailing its assets totaling over $539 million and those of its related reinsurer amounting to over $2.1 billion.
The attorney general’s office has raised concerns about the sufficiency of the bond, prompting a closer examination of the underwriter’s financial capabilities. In a related case, a state appeals court has emphasized the need for bonds to be adequately collateralized by identifiable assets. Knight Specialty Insurance, a part of the California-based Knight Insurance Group, has asserted that the bond is supported by cash and bonds as collateral.
Eric Trump, a senior executive at the Trump Organization and son of the former president, has defended the bond, stating that it is fully backed by cash. In a social media post, Trump criticized the attorney general’s objection as part of a larger misguided effort against his family. The lawsuit also implicated Trump’s other son, Donald Trump Jr., who, along with additional defendants, faces a growing judgement now exceeding $467 million with accumulated interest.
The ongoing dispute underscores the complex legal maneuvers employed by both sides as they navigate the intricacies of the case. With the impending hearing, the outcome of the bond challenge remains uncertain, adding another layer of drama to the high-profile legal saga between Trump and the state of New York.