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New York AG Letitia James Wants To Invalidate Trump’s $175M Bond and Seize His Properties

In the latest development in former President Donald Trump’s civil fraud case, the New York Attorney General’s Office has motioned to invalidate a $175 million bond that postpones Trump’s payment of a substantial monetary judgment.

The request, filed in court, challenges the legitimacy of the bond secured by Trump and co-defendants, including the Trump Organization and its senior executives. 

The state’s legal team argues that the bond lacks sufficient financial backing and clear collateral.

State attorneys assert that the California-based Knight Specialty Insurance Company, which underwrote Trump’s bond, does not possess adequate resources to cover the bond amount. 

This insurer is also not authorized to operate in New York, further complicating its involvement.

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Credits: DepositPhotos

According to the filings, Knight Specialty Insurance has a policyholder surplus far below what is needed to safely underwrite the $175 million bond. 

According to New York law, insurers such as Knight are prohibited from taking on liabilities that exceed 10% of their surplus, which in this instance would be approximately $13.8 million — a substantial amount below the bond amount that is needed.

The filing criticizes Trump for allegedly not demonstrating that the bond is secured by identifiable and adequate assets. 

It says that the bond is not “sufficiently secure and ascertainable.”

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Credits: DepositPhotos – US President Donald Trump and First Lady of the US Melania Trump arrive for a working dinner at The Parc du Cinquantenaire in Brussels, Belgium on Jul. 11, 2018. — Photo by Ale_Mi

This claim centers on the contention that Trump still has direct access to the $175 million he used as collateral, which contradicts the requirements for a justified bond.

Trump and his associates were ordered to pay $464 million in damages and interest after Judge Arthur Engoron concluded earlier in the year that they had manipulated financial statements to obtain tax and insurance advantages. 

The bond in question is crucial as it prevents the immediate collection of these funds while the case is under appeal.

Trump’s legal team claimed that it was not possible to secure a full bond, so the bond amount that had originally matched the full judgment amount was lowered on appeal.  

This reduction has now become a focal point of legal scrutiny by the attorney general’s office.

A court hearing is scheduled for Monday to address these allegations. 

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This meeting, which marks a turning point in Trump’s ongoing legal struggles, will take place in tandem with the opening remarks of his unrelated criminal trial in New York.

If the judge accepts the attorney general’s argument, Trump may be required to secure another bond within a week, intensifying the financial pressures associated with the case.

This legal challenge is part of a series of actions by New York Attorney General Letitia James’s office aimed at holding Trump and his business practices accountable under the law, emphasizing the ongoing tensions between state authorities and the former president.