In the evolving legal saga surrounding former President Donald Trump, New York Attorney General Letitia James is pulling all the strings to stop former President Trump from posting bond. She is raising questions about a significant financial instrument at the heart of the matter—a $175 million bond.
The context here is a lawsuit led by Attorney General James against Donald Trump, his sons, Eric Trump and Donald Trump Jr., and The Trump Organization. Allegations at the forefront include the inflation of property values and net worth by billions to secure loans and deals with banks and insurers. Judge Arthur Engoron’s ruling in February laid down a hefty sum for Trump to pay: $454 million, encompassing penalties and interest, as a result of these accusations.
Trump’s stance has been one of defiance, and he successfully got the amount to post for bond reduced.
Knight Specialty Insurance Company (KSIC) stepped in to post bond for Trump, effectively shielding his assets from seizure. KSIC, under the umbrella of the Hankey Group. Yet, the bond’s acceptance hit a roadblock when the court rejected the documents due to a lack of a current financial statement, prompting questions from James regarding the bond’s sufficiency.
The question is, will New York allow KSIC, a non-admitted insurance company in the state, to support Trump and post the bond? KSIC, who can post the bond, has refiled their paperwork in an attempt to appease the court.
The New York Post put it best: “Tish[James] has become the Wile E. Coyote to Trump’s Road Runner, setting up harebrained traps and decoys to sabotage the former president — and making New York’s legal system look like a joke in the process.”
What James is doing is gumming up the process to create more of a headache for Trump. Some would conclude that this is just another form of weaponized lawfare being waged against the former president.
If KSIC is unable to pay the bond James said Trump has 10 days from April 1. If the bond isn’t paid James could get the green light to seize Trump assets. A hearing is scheduled for April 22nd.
