By JENNIFER PELTZ (Associated Press)
NEW YORK (AP) — Shortly after former President Donald Trump submitted a $175 million bond to prevent New York state from immediately collecting on a substantial civil fraud ruling, state attorneys on Thursday requested more information regarding the legitimacy of the bond.
The attorney general's office of New York, led by Letitia James, filed paperwork giving 10 days to Trump's legal team or the bond underwriter to “justify” the bond, essentially requiring them to demonstrate that the company can fulfill its obligations. This could involve disclosing more about the security Trump provided.
A hearing is scheduled for April 22.
Christopher Kise, one of Trump’s lawyers, accused James of attempting to incite an unfounded public dispute in a desperate attempt to regain importance following a recent significant reduction in the required bond amount to delay the collection.
Kise expressed in an email, “Yet another witch hunt!”
A message was left for the underwriter, Knight Specialty Insurance Co., seeking comment.
The bond, filed on Monday, temporarily halted the state from potentially seizing Trump's assets to settle the more than $454 million that he owes as a result of losing a lawsuit. The case, which was brought by the Democratic attorney general, alleged that Trump deceived bankers and insurers by misrepresenting his wealth.
The former president, and likely Republican nominee, refutes the allegations and is appealing the ruling.
By posting the bond, Trump aimed to pause the enforcement of the ruling during his appeal. However, it has not proceeded entirely smoothly.
Initially, the court system returned Monday’s filing for further documentation, including a financial statement from Knight Specialty Insurance. The filing was submitted on Thursday, revealing that the company possesses over $539 million in assets, and the related reinsurer Knight Insurance Co. Ltd. has over $2.1 billion.
Subsequently, James’ office indicated that it has concerns about the adequacy of the bond, a step that victorious parties can take to obtain more information from out-of-state underwriters under certain circumstances.
Knight Specialty Insurance is a part of the Los Angeles-based Knight Insurance Group, situated in Wilmington, Delaware.
The attorney general's notice does not specify the requested information. However, the term “justifying” generally involves proving that the underwriter is financially stable and capable of settling the bond amount if the ruling is upheld.
Additionally, in an unrelated case, a state appeals court has stated that there needs to be evidence showing that a bond is “adequately backed by identifiable assets.”
According to Knight Insurance Group Chairman Don Hankey, cash and bonds were utilized as collateral for Trump’s appellate bond.
Contributors to this article include Associated Press writers Michael R. Sisak in New York and Brian Slodysko in Washington.
