The firm that posted a $175 million bond for Donald Trump defended the deal in a court filing, asserting that it is adequately secured by the former president's cash. New York Attorney General Letitia James had raised concerns about the arrangement, including the licensing of the bond company. The filing also revealed that the bond is backed by Trump's Charles Schwab brokerage account and argued that the bond company is properly licensed. However, some experts believe that the filing may not have fully addressed all of James's concerns, and a court hearing is set to examine the matter further.
New York Attorney General Letitia James has raised doubts about the $175m bond posted by Donald Trump in his civil fraud case, questioning whether the California-based insurer, Knight Specialty Insurance Company, has the financial capacity to cover it. The insurer's lack of authorization to issue surety bonds in New York has prompted the attorney general to request further proof of its capital. Meanwhile, Trump's legal team has refuted the attorney general's concerns, and the judge overseeing the case has scheduled a hearing on the matter for April 22.
New York Attorney General Letitia James seeks more information about former President Donald Trump's bond for the civil fraud case, issued by Knight Specialty Insurance Company, as KSIC is not admitted in New York. James requests Trump's team or KSIC to justify the surety bond or provide further information about collateral within 10 days. The $175 million bond was fully collateralized by cash from Trump’s company, and a bond hearing for the civil fraud trial is scheduled for April 22.
New York Attorney General Letitia James questions the financial stability of Knight Specialty Insurance Company, which posted a $175 million bond for Donald Trump in his bank fraud case. The AG has raised concerns about the company's ability to operate in the state and meet capital requirements, as well as its over-leveraging. Knight Specialty Insurance Company's president claims the firm is not subject to New York's solvency rules, but this assertion has raised further questions. The company's financial statements and its ability to cover the bond amount have come under scrutiny, leading to doubts about its capacity to handle the risk.
Don Hankey, CEO of the company that helped Donald Trump pay his civil fraud bond, is under scrutiny due to his ongoing relationship with the Trump family and his company's links to controversial entities. Hankey, who heads Knight Specialty Insurance Company and Axos Bank, has faced criticism for his business practices, including high-interest rates and alleged dubious lending practices. The company's involvement in financing real estate transactions with Jared Kushner's Kushner Companies and lawsuits against it have also drawn attention. Hankey, a Trump supporter, defended his decision to help Trump pay the bond, while Trump's attorney expressed confidence in overturning the verdict on appeal.
