Former President Donald Trump’s lawyers have claimed that the $175 million bond posted to meet the judgment in a New York civil fraud case is financially viable. They argued that the bond, secured by Knight Specialty Insurance Company, is backed by a Charles Schwab account with over $175 million in cash. Trump’s lawyers have asked the judge to dismiss the attorney general’s challenge to the bond and to award him costs and fees.
In court filings, it was revealed that the DJT Trust granted Knight Specialty Insurance Company a security interest in a Schwab brokerage account, ensuring that no less than $175 million in cash or cash equivalents is maintained at all times. The bond is fully backed by Knight Insurance Company, Ltd. which reinsures 100% of Knight Specialty’s risk. This information was affirmed by Gregory Serio, a former superintendent of insurance for New York state and a partner at Park Strategies, a government consulting firm.
The attorney general’s office had previously questioned the underwriter’s financial ability to stand in for the bond, leading Judge Arthur Engoron to schedule a hearing for further clarification. However, Trump’s lawyers argued that a hearing was unnecessary as the documentary evidence supporting the justification of the bond was overwhelming. They contended that Knight Specialty was a valid surety and no further examination was needed.
One of the concerns raised by the attorney general’s office was whether Knight Specialty was authorized to underwrite a surety bond in New York state and whether it lacked a certificate from the state regulator proving its qualifications. Trump’s attorneys dismissed this claim, stating that a certificate is not the sole indicator of financial stability. They maintained that the $175 million bond was adequately secured and should be accepted without further delay.
Overall, the $175 million bond posted by Donald Trump to satisfy the judgment in the New York civil fraud case is said to be financially sound and valid. Trump’s lawyers have provided evidence to support the legitimacy of the bond, including details of the security interest granted in the Schwab brokerage account and the reinsurance provided by the parent company of Knight Specialty. The ongoing dispute with the attorney general’s office over the underwriter’s financial ability continues, with a hearing scheduled to address the matter. Despite these challenges, Trump’s attorneys remain confident in the bond’s validity and are pushing for a favorable resolution in his favor.
