this $175 million bond Information released by an insurance company in a civil fraud case against former President Donald Trump could be upheld after reaching a deal Monday that included a guarantee from his attorneys to abide by terms from the attorney general’s office.
New York Attorney General Letitia James’ office argued that it had financial concerns Knight Specialty Insurance CompanyThe company posted a bond for Trump on April 1.
The deal should be finalized by Friday, with some details requiring Schwab, the money market account manager, to agree on the terms.
To prevent overcharging James’ office $464 million Trump and other defendants were found responsible for a decade-long fraud scheme.
In protesting the bond, James’ office said the $175 million in cash Trump claimed was posted as collateral was under the control of his revocable trust and not in the Knight account.
Chris Keys, the Trump Organization’s chief lawyer, spoke for about 30 minutes Monday, assuring the court that the $175 million bond would be paid in cash and held in an interest-bearing money market account that would not lose value. Kise said the cash account earns about $400,000 in interest every two weeks.
They said Trump would still be able to withdraw the funds or replace them with other assets that could fluctuate with the market. James’ attorneys said they were concerned that they would no longer be guaranteed if the bond value fell below $175 million.
The attorney general said in an April 19 filing that he believed the company would not meet multiple demands from covered bondholders even if the Trump funds were under Knight’s control.
As CBS News reports, Knight does not appear to be meet the constraints Under New York insurance law, a company cannot risk more than 10% of its capital. The attorney general’s office noted that Knight’s surplus is only $138 million. Under New York State law, the Company’s liability due to the amount of the surplus cannot exceed $13.8 million.
The attorney general also said Knight relied on risk-shifting practices to “artificially” increase its surplus. James also believes that Knight’s management cannot be trusted and has violated federal law “repeatedly over the last several years.”
Monday’s hearing took place in a courtroom where Trump sat a block away. Listen to the opening remarks A separate case was filed by Manhattan criminal prosecutors.
Trump is the first former president in US history to be criminally indicted and stand trial. Jurors in the case were told by Manhattan District Attorney Alvin Bragg that prosecutors would present evidence. 34 felony counts supported Falsifying business documents. Bragg’s office claimed Trump and his then-lawyer Michael Cohen Cohen conspired to cover up compensation after paying an adult film star $130,000 in exchange for her silence about alleged sex with Trump.
Trump has denied all charges in both cases and entered not guilty pleas in the criminal case. His attorneys have claimed there is insufficient evidence in the cases and have repeatedly attacked Cohen’s credibility. They accused James and Bragg of going after Trump as part of a “witch hunt” aimed at hurting Trump’s chances of winning the presidency in 2024.
Graham Cates
Graham Cates is an investigative reporter for CBS News Digital, covering criminal justice, privacy issues and data protection. Contact Graham: [email protected] or [email protected]
(Tag translation) Donald Trump (T) Letitia James
