Letitia James Presses Judge to Declare $175 Million Bond ‘Without Effect’ and Post New Bond

New York Attorney General Letitia James is urging the judge in former President Donald Trump’s civil fraud case to declare the $175 million bond posted by a surety company on his behalf as “without effect” and to post a new bond with stronger collateral, while also raising doubts about the credibility of the firm involved.

On April 1, Knight Specialty Insurance Company (KSIC) issued a $175 million bond for President Trump, enabling him to forestall the potential seizure of his properties or assets.

This move came in response to a $464 million judgment (including interest) in a case alleging he inflated asset values to secure more favorable loan terms.

Ms. James, a Democrat who filed the civil fraud case against President Trump, initially questioned the “sufficiency” of the $175 million bond in a court filing days after KSIC posted it.

This prompted the former president’s attorneys to argue in response that the company is well-funded and has ample collateral to support the bond.

However, Ms. James has rebuffed that claim, presenting several arguments against KSIC’s assertion in a court filing on April 19.

She is urging New York Supreme Court Justice Arthur Engoron, the presiding judge, to invalidate the bond and mandate a replacement to be posted within seven days.

KSIC did not respond immediately to a request for comment.

Justice Engoron scheduled a hearing for April 22 to address the issue of the bond.

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By Hunter Fielding
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