New York Attorney General Letitia James has questioned Donald Trump’s $175 million bond posting, despite a rectified application. A former attorney general’s office assistant tells UPI that the posting is inadequate for a variety of reasons.
James’ office issued a notice of exception on Thursday, following Trump’s attorneys’ resubmission of an amended bond. The notification inquires as to whether underwriter Knight Specialty Insurance is properly eligible to guarantee the bond in the civil fraud judgment against Trump.
New York Supreme Court Judge Arthur Engoron has scheduled a bond hearing for April 22.
According to the document, Knight Specialty Insurance is not a licensed insurer in New York, so it does not meet a basic requirement for posting a bond in the state.
According to Adam Pollock, managing partner of Pollock Cohen LLP in New York, this isn’t the only concern with the bond. Pollock is a former United States assistant attorney general who held the position until 2017.
“This bond is more financial chicanery in a financial chicanery trial,” he said. “This judge is going to have little patience for a flawed bond.”
Pollock told UPI that it is twice stated in New York law that a bond must be written by a New York-registered insurer. This license is issued by the New York Department of Financial Services.
The financial statement, absent from the initial bond filing, must additionally demonstrate the insurer’s excess capital of at least ten times the bond amount. In this situation, the barrier is $1.75 billion.
Knight Specialty Insurance’s declaration shows that it has $138 million in surplus capital. That is less than the $175 million bond and significantly less than the amount necessary under New York law.
“The state doesn’t want one insurance company writing for more insurance than it can guarantee,” Pollock told UPI in an interview.
Knight Specialty Insurance also enclosed a consolidated statement of all affiliated firms, showing that they have a combined surplus of around $1 billion.
The insurance company is part of Hankey Group, a conglomerate. Don Hankey, a billionaire, is the group’s chairman and CEO.
Pollock observed that a judgment typically requires the defendant to pay the entire amount. James granted Trump a grace period of 30 days to gather cash for the $464 million judgment, but she was under no obligation to do so.
Trump did not need to post bail to appeal the decision. To obtain a stay of enforcement, he was required to deposit bail.
Trump and his lawyers have criticized the magnitude of the judgment, as well as James’ claim that he can negotiate with numerous insurers to secure it in full. They pointed out that the interest Trump will pay is not recoverable even if he wins on appeal.
While this is true, Pollock believes that some hardship is reasonable following a case loss.
Trump appealed the decision, claiming that it was excessive. Pollock anticipates a decision on the appeal in the fall.
“This has a huge appeal.” There was a two-month trial, so there are a lot of transcripts and factual material to sort through,” Pollock explained. “I wouldn’t be surprised if it takes longer than usual.” Looking at the court timetable, Trump must submit the actual appeal by July 8. The case will be argued in early September. If all goes as planned, they should have a result by the end of October.
The verdict will take effect immediately if Trump’s appeal fails, putting his assets and properties at risk of seizure.
“I don’t expect any further grace to come,” Pollock continues.
