Trump's $175m fraud bond thrown into doubt as New York attorney general questions insurer | The Independent
By: Joe Sommerlad (The Independent)
Holy Shit FFS
S E E D E D C O N T E N T
Letitia James filed a 'notice of exception to the sufficiency of the surety' seeking more information about Knight Specialty Insurance Company
Donald Trump's $175m bond in his New York civil fraud case has been thrown into doubt by New York Attorney General Letitia James after she filed a notice asking for evidence that the out-of-state firm that underwrote it really has the money to pay up.
Ms James's office submitted a "notice of exception to the sufficiency of the surety" on Thursday asking for further proof that California-based Knight Specialty Insurance Company (KSIC) has the capital to proceed on the former president's behalf.
KSIC is not regulated by New York state, which means that it is not authorised to issue surety bonds in the Empire State and therefore cannot obtain a certificate from the New York Department of Financial Services, which is customarily part of any bond package.
"Defendants or KSIC shall file a motion to justify the surety within 10 days of the service of this notice, failing which the bond shall be without effect, except that the surety shall remain liable on the bond until a new undertaking is given and allowed," the notice read.
Judge Arthur Engoron - who presided over the original three-month trial that ended on 16 February with Mr Trump and his fellow Trump Organization executives being found liable for illegally inflating the value of company assets to obtain favourable terms from lenders - has already moved to schedule a hearing on the matter for 22 April.
Mr Trump finally placed the bond on Easter Monday after a panel of New York appeals court justices granted him a 10-day extension on the original 25 March deadline and ruled that he need only pay $175m - a portion of the full $464m bond representing the value of the entire judgement against him.
KSIC is owned by Republican billionaire Don Hankey - a man dubbed "the king of the subprime auto loan" whose Axos Bank has previously helped refinance loans on several of Mr Trump's luxury properties.
Mr Hankey said on Tuesday that his client had provided the full $175m in cash as collateral for the bond.
Earlier on Thursday, key paperwork from the bond filing was rejected and "returned for correction" to Mr Trump's legal team before being swiftly refiled with the requested financial statement from KSIC and two other missing details.
The additional documents suggest KSIC held total assets of $539m at the end of 2023 and $13m in surplus to policyholders while its parent company's total assets stood at $2.2bn with $1m in surplus.
New York Attorney General Letitia James (AP)
Bruce Lederman, an attorney with DL Partners, told CNN on Thursday it was understandable that Ms James should wish to know more about the underwriter's capabilities and pointed out that Mr Trump can ask Judge Engoron to sign off on KSIC.
"If they seek court approval of Knight Specialty, I believe that the attorney general will want proof that the company is actually holding the $175m in cash collateral so the bond can be immediately paid if the judgement is affirmed without needing to wait to try to liquidate pledged assets," he said.
However, Mr Trump's attorney Chris Kise responded to the the attorney general's questioning of KSIC by accusing her of engaging in a "baseless public quarrel".
"After hiding out in silence following an embarrassing loss in the First Department, which does not bode well for the future of her baseless and vindictive political crusade, the attorney general now seeks to stir up some equally baseless public quarrel in a desperate effort to regain relevance," he said.
Separately, Ms James's office also approached Judge Engoron on Thursday requesting that the independent monitor appointed to oversee the Trump Organization's affairs also investigate whether the defence "withheld relevant and responsive information" during the trial, citing the company's former CFO Allen Weisselberg pleading guilty to perjury charges last month.
By paying the bond on Monday, Mr Trump ensured that Ms James was prevented, for now, from repossessing some of the key assets in his hometown real estate empire like Trump Tower and 40 Wall Street.
The Republican presidential candidate is appealing the case and could yet be forced to pay the $464m judgement in full should he lose.
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No Fascism References, Memes, Source Dissing.
Wasn't able to "get him" with the $464M as it was reduced to a still whopper amount. He makes that. Now she questions the source. Tell me again how this whole fucking thing isn't political and a way to further the "get Trump at any cost" bullshit we have seen for nine pathetic years.
Once it is proven that KSIC and parent company hold more than enough assets and collateral to cover the $175 bond; she will move the goal posts again and try to have it paid in 2 dollar bills, gold doubloons, or Aztec gold from El Dorado.
This dumb bitch doesn't have the smarts to look up the Best rating and company size which is A- Excellent and 750 Million to 1 billion.
Wow, looks like the "dumb bitch" while probing Trump has struck a [✘] nerve on NT! Maybe Ms. James will strike another one if she keeps digging. It is possible Ms. James will not, but that is what probing allows for, discovery/ies.
Maybe she will discover that she is a part of a corrupt cabal known as the Democrat party that doesn't give a shit about the law or Constitution; and announce her retirement from politics?
That is if she had any ethics- which Democrats seem to have lost in favor of TDS.
Some nerve to suggest, I guess. And while nothing yet changes around here. . . let's move on.
Maybe you should try keeping up, she's questioning the Insurance carrier that posted the bond.
That insurance carrier still has to prove they are able to pay the bond when Trump loses the appeal. The 175 million is over 1/3 of the company's available cash. That cash also has to be available to other clients of the company, so the question is...can they actually afford it?
If you don’t have to pay rent, mortgage or income taxes right away, why a bond. Monthly payments is the American way.
Oh great, you have 'details.' /s. If not much more to write.
Apparently not so dumb if trump owes $175 million.
Sorry deleted the MEME, didn't read the red box rules again.
Bernie Madoff died in prison for his crimes while, as we keep being reminded, Trump's bond in this case is a civil penalty.
Although, Trump's criminal case in NY does start in ten days...
MAGAs know better. (They have eyes and ears to read, hear, and 'brains' to interpret.) But, they expect the country to capitulate to their whims as they view themselves as sole arbiters of what is morally and legally correct in this country.
Moreover, the judge in this case has provided an opinion as to how he reached his conclusion on the amounts ordered paid, and since each case stands (or falls) on the 'merit/s' -[✘]
Bernie committed an actual crime.
What crimes did Trump commit again?
Democrats, having TDS and wanting to remove opponents from the general election is not crime.
Democrats need to learn who the real criminals are- and stop coddling them. They also need to learn equal application of the damn law!
Are you asking which crimes he has been charged with or are you asking on which crimes he has been found guilty?
Or are you asking which crimes JBB believes Trump has committed?
To see the crimes Trump has been charged with, see the publicly available criminal indictments.
The crimes to which he has been found guilty are a function of pending trials.
According to the grand juries in four different jurisdictions that have voted nearly a hundred criminal indictments against him Donald Trump committed many actual crimes.
Some MAGAs know better. (They have eyes and ears to read, hear, and 'brains' to interpret.) But, they expect the country to capitulate to their whims as they view themselves as sole arbiters of what is morally and legally correct in this country.
Moreover, the judge in this case has provided an opinion as to how he reached his conclusion on the amounts ordered paid, and since each case stands (or falls) on the 'merit/s' - one would think the 'big shit some MAGAs' talkers" would accept the result based on merit. . . but again, here some MAGA cult followers are bitching and moaning about their cult leader not being given corporate privilege treatment they feel he deserves.
The crimes to which he has been found guilty are a function of pending trials.
So the crimes he has been found guilty (past tense) are a function of trials that have not been completed yet (future tense).
Interesting.
Trump is likely the most prolific serial criminal of all time.
Samuel Little!
Equivalently: Once the trials are complete, we will know the crimes to which he has been found guilty.
[✘]
Yet, some MAGAs can find "thousands" of legal issues and personality issues with President Biden even though he is a good man whom is not indicted (or able to be impeached) for anything! Some MAGAs prayed to their god that Biden would be "article 25-ed" and it didn't happen because there is no there or "theres," plural, there.
Sound's like she's crying and throwing a tantrum because the bond not only reduced by about 75% but the new amount was posted.
The Pandoras Box the left has opened up with their vendetta on Trump is going to blow back on them and big.
It ain’t gonna pretty but just remember, you opened it …..