New York Attorney General Letitia James has requested that a judge void former President Donald Trump’s bond in his civil fraud case, citing concerns about the company that issued it, Knight Specialty Insurance Company (KSIC). James questioned whether KSIC has the financial stability to back the $175 million bond and argued that the collateral put up by Trump should be under the full control of the company. She raised concerns about KSIC not being authorized to operate in New York and lacking significant policyholder surplus.
In her 26-page filing ahead of a pre-scheduled hearing, James criticized the lack of exclusive control that KSIC has over the collateral backing the bond, pointing out that the company could only gain control with two days’ notice. Neither Trump’s lawyers nor KSIC responded to requests for comment. Trump’s attorney, Alina Habba, previously stated that the former president looks forward to appealing the case and overturning the verdict, denying any wrongdoing. The reduction of the bond from $464 million to $175 million by a state appeals court occurred in March, with Trump being liable for the majority of the lowered sum.
The filing requesting to void Trump’s bond follows an earlier notice filed by James seeking more information about the bond. She requested that Trump’s legal team or the insurance company justify the surety bond or provide additional information about the collateral within 10 days. Trump has been vocal in condemning the case against him and has maintained his innocence. The criminal hush money case against Trump, where he faces 34 counts of falsifying business records, was also ongoing in New York with a jury being selected and arguments set to begin.
State appeals court judges rejected Trump’s request for an emergency stay of the trial in the criminal case. Trump has pled not guilty to all counts in that case. The new filing by James regarding Trump’s civil fraud case raises questions about the financial stability of KSIC and the control over the collateral backing the bond. The future of Trump’s legal battles remains uncertain as these developments unfold, with the former president continuing to defend himself against the charges brought against him. The outcome of the civil fraud case and the criminal hush money case will have significant implications for Trump’s legal standing.
