By LARRY NEUMEISTER (Associated Press)
NEW YORK (AP) — Lawyers from New York state and an attorney for former President Donald Trump resolved their dispute on Monday regarding the $175 million bond that Trump put up to prevent a significant civil fraud judgment while he continues to appeal.
The agreement ended a possible day-long court hearing in Manhattan that was supposed to include witnesses.
As part of the deal made during a 20-minute break, Trump's lawyers and Knight Specialty Insurance Company agreed to keep the $175 million in a cash account that will earn interest without facing any downside risk. The account has already gained over $700,000.
The bond prevents the state from potentially seizing Trump’s assets to settle the over $454 million he owes after losing a court case brought by the Democratic attorney general, who alleged that Trump, along with his company and key executives, had defrauded bankers and insurers by lying about his wealth. The ex-president and presumptive Republican nominee denies the claims and is appealing the judgment. Judge Arthur Engoron, who in February imposed the hefty judgment after finding that Trump and others had misled banks and insurers by overstating his wealth on financial statements, oversaw Monday’s hearing and at times engaged in a contentious exchange with Trump's lawyer Christopher Kise. case Engoron challenged Kise with examples of how the money Trump had put up might not be available for collection if the judgment were upheld, prompting Kise to reply in one instance that the judge’s “hypothetical is … wildly speculative.”
At another point, Kise expressed frustration with the office of New York Attorney General Letitia James, saying: “It appears that no matter what we do they’re going to find fault with it.” But Andrew Amer, an attorney for New York state, proposed settlement terms shortly after he began speaking at the hearing. He said the state wanted extra assurances because Trump had raised the money with help from a relatively small out-of-state insurance company..
As part of the deal, Knight Specialty Insurance, a Wilmington, Delaware-based part of the Los Angeles-based Knight Insurance Group, will have exclusive control of the $175 million and will submit to the jurisdiction of the New York state court while agreeing not to transfer the money into mutual funds or other financial instruments.
Talking to reporters outside Trump’s separate criminal hush money trial, his attorney, Alina Habba, criticized Engoron’s understanding of finance, stating, “He challenged the bonding company that maybe the bonding company was no good. Well, they’re good. And they also have $175 million dollars of collateral — my collateral.”
“We came to an agreement that everything would be the same,“ she said. ”We would modify terms and that would be it.”
Trump also criticized Engoron, accusing him of not understanding the case.
AP Writer Jill Colvin contributed to this story.
By LARRY NEUMEISTER (Associated Press) NEW YORK (AP) — New York state lawyers and an attorney for former President Donald Trump settled their differences Monday over a $175 million bond that Trump posted to block a large civil fraud judgment while he pursues appeals. The agreement cut short a potential day-long court hearing in Manhattan […] criminal hush money trial, his attorney, Alina Habba, said Engoron “doesn’t even understand basic principles of finance.”
“We came to an agreement that everything would be the same, “ she said. ”We would modify terms and that would be it.”
Trump also railed against Engoron, accusing him of not understanding the case.
“He challenged the bonding company that maybe the bonding company was no good. Well, they’re good. And they also have $175 million dollars of collateral — my collateral,” he said.
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AP Writer Jill Colvin contributed to this story.
