Experts — and state authorities themselves — are raising substantial questions about the $175 million bond recently posted by Donald Trump amid his civil case in New York alleging an extensive pattern of business fraud.
The so far largely successful case, which originated with New York state Attorney General Letitia James, hinged on an alleged pattern of misrepresenting the value of various Trump assets, setting up unearned financial benefits for the ex-president’s circles.
“Looks like there is a real possibility that this Don Hankey-owned Knight Specialty Insurance does not itself have liquidity, and did not get from Trump collateral, sufficient to provide legally cognizable assurance that it can pay $175 million on demand in the event of a judgement-affirming appeal. Thus NY AG James looks to be soon greenlit to executing on her $450 million judgement against Trump as if Trump posted no bond,” Eric Lisann, a former prosecutor, argued on X, the social media platform formerly called Twitter.
The bond is meant to halt collections on Trump’s nearly half a billion dollars in penalties stemming from the case, so the bond falling short would, it seems, allow collections to move forward — a process that if actually seen could involve James pursuing Trump assets like properties and money that’s been stored up by the ex-president. Trump himself previously acknowledged the possibility of New York authorities going after his assets, characterizing throughout this whole process the prospect as uniquely unfair against him, though the bond process involved here is not new.
Judge Arthur Engoron, who handled trial in the James case and issued the condemning decision against Trump spurring those massive financial penalties, scheduled a hearing for this month that will cover questions surrounding Trump’s bond deal. As explained by CNN, James’ team “filed a “notice of exception to the sufficiency of the surety” to seek additional information from Trump or the underwriter about the bond because the insurer is not regulated by New York state.”
