New York Attorney General Letitia James has left former President Donald Trump “stunned” after rejecting his $175 million bond in his civil fraud case, as per Mary Trump on Friday.
Last month, Judge Arthur Engoron sided with James’ lawsuit against Trump, his sons Eric Trump and Donald Trump Jr., and The Trump Organization.
The lawsuit alleges that the former president inflated property values and his net worth by billions of dollars on financial statements provided to banks and insurers for deals and loans. Engoron ordered Trump to pay $454 million, including $355 million in penalties and nearly $100 million in interest.
Trump, who is presumed to be the Republican nominee for the 2024 presidential election, maintains his innocence, labeling the case against him as a politically motivated witch hunt.
Letitia James (Credits: New York State Attorney General)
Knight Specialty Insurance Company (KSIC) posted a bond on Monday to prevent Trump’s assets or bank accounts from being seized. KSIC is owned by the privately held Hankey Group, chaired by Don Hankey.
In a Truth Social post, Trump criticized his bond’s rejection, claiming it was based on a corrupt judge and attorney general. He argued that his financial statements were conservative and included a caution/non-reliance clause. He also stated there were no victims except himself and that no crime or damage occurred, only success and satisfied banks.
However, the court rejected documents related to the $175 million bond because a current financial statement was absent. James later questioned the sufficiency of the bond in a legal filing.
Ex-US President Donald Trump (Credits: Newsweek)
A source within James’ office explained that Trump filed because He chose an insurance company not admitted in New York, making it ineligible to obtain a certificate of qualification from the Department of Financial Services (DFS).
James’ office filed a notice of exception to the surety, requiring Trump or his legal team to demonstrate the surety’s financial capability under the bond.
KSIC Refiled its Paperwork Accordingly
Mary Trump addressed the rejected bond on her Substack blog, highlighting the implications and spotlighting the financial capabilities of the chosen surety company.
The hearing on the matter is scheduled for April 22.
Meanwhile, James requested Engoron’s confirmation on Thursday regarding her office’s communication with Barbara Jones, whom Engoron appointed to oversee The Trump Organization’s finances.
James proposed an order allowing her office to communicate with Jones’ office without Trump’s lawyers present. Jones had been overseeing The Trump Organization’s finances since November 2022 as part of a preliminary injunction in the civil fraud case. Lawyers from both sides suggested Jones serve as the monitor.
