NY Attorney General Seeks to Invalidate Trump’s $175 Million Bond in Fraud Case Appeal

The New York Attorney General’s office filed a request on Friday to invalidate a $175 million bond posted by former President Donald Trump to secure a much larger monetary damage award in his civil business fraud case while he appeals the judgment.

In the filing, the AG’s office argued that Trump and other defendants in the case failed to demonstrate sufficient identifiable collateral to support the bond for the judgment in Manhattan Supreme Court.

The filing highlighted concerns about the surety used by Trump to obtain the bond, Knight Specialty Insurance Company (KSIC), characterizing it as “a small insurer that is not authorized to write business in New York and thus not regulated by the state’s insurance department.” It noted that KSIC had never previously written a surety bond in New York or in any other jurisdiction over the prior two years and has a total policyholder surplus of just $138 million.

The filing opposed a joint motion by Trump and KSIC to validate the insurer as the surety company holding the bond.

Attorney General Letitia James’ lawyers requested Judge Arthur Engoron to mandate that Trump and other defendants provide a replacement bond within seven days of a ruling on the matter. James’ lawsuit against Trump resulted in the significant civil judgment against him. A hearing on the bond dispute is scheduled for Monday.

In February, Engoron found Trump, the Trump Organization, and other defendants liable for fraud, determining that they had artificially inflated the value of real estate assets for years to enhance Trump’s net worth. These actions facilitated better loan terms and financial benefits for the company.

Trump was individually ordered to pay $454 million in damages, with the amount increasing daily due to interest. He is currently appealing the verdict and was obliged under New York law to post a bond to secure the judgment during the appeal process.