New York state Attorney General Letitia James is now asking that the $175 million bond posted by former President Donald Trump amid a fraud case that she brought be voided, which — unless another bond is produced in a timely fashion — would evidently tee up a process of state authorities pursuing asset seizure to cover Trump’s underlying penalties.
The hundreds of millions of dollars worth of penalties on the former president stem from a civil case alleging business fraud that James brought against him and others, alleging, among other things, a pattern of misrepresenting the value of various assets and thereby teeing up unearned financial benefits like favorable terms on loans. The present bond was produced after an appeals court in New York lowered the required amount from some $450 million+ of Trump’s penalties, around which time the prospect of James pursuing asset seizure was already discussed.
Theoretically, that could ensnare the former president’s portfolio of properties at various locations around the country, although financial holdings — like actual bank accounts and the like — could also be under threat.
As for the $175 million bond, James was highly critical of both the bond company’s standing to make the deal at all and specific terms of the arrangement. As highlighted by NBC News, filings from the state contend that Knight Specialty Insurance Company “had never before written a surety bond in New York or in the prior two years in any other jurisdiction, and has a total policyholder surplus of just $138 million.” James’ filings also spotlight that Knight doesn’t outright control the Trump financial account claimed as collateral for the deal.
Evidently, the terms of that deal demand that a Trump financial trust maintain that account at a minimum of $175 million in cash or cash equivalents… which led former federal prosecutor Andrew Weissmann to question why Trump would move forward with the bond at all if he just has the money. Weissmann suggested the funds might be simultaneously tied up elsewhere, like also securing other debt. There’s a hearing on Monday.
