In an unprecedented move, New York Attorney General Letitia James is taking steps to void former President Donald Trump’s $175 million bond, paving the way for the seizure of his assets, according to a new report in the Epoch Times.
The state’s legal team argues in recent court filings that Trump and his co-defendants, including the Trump Organization and his two eldest sons, have failed to provide sufficient evidence that the surety backing the bond possesses the necessary funds.
The bond in question is backed by the Knight Specialty Insurance Company, a California-based insurer that, according to state lawyers, is “not authorized to write business in New York” and had never before issued a surety bond in the state prior to Trump’s case.
With a policyholder surplus of only $138 million, the company is legally prohibited from taking on debts or risks that could jeopardize more than 10% of its assets under New York state law.
Letitia James Presses Judge to Void Trump’s $175 Million Bond, Paving Way for Asset Seizure
KSIC posted the $175 million bond on behalf of President Trump on April 1.https://t.co/MmnjOfQ6oG
— The Epoch Times (@EpochTimes) April 20, 2024
“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” state lawyers explained in their filing. “The face amount of the bond exceeds this limitation by $161.2 million.”
Furthermore, the state contends that Trump and his co-defendants have not adequately demonstrated that the bond is sufficiently collateralized by identifiable assets, as Trump still maintains access to the $175 million in cash he placed in an account as collateral.
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Earlier this year, Judge Arthur Engoron ruled that Trump, the Trump Organization, and top officials had conspired to manipulate Trump’s net worth to secure tax and insurance benefits, ordering them to pay a total of $464 million plus interest.
President Trump mocks Letitia James and Judge Engoron:
"It's an honor to have you at Mar-a-Lago, my $18 million house on the ocean and the bay…" pic.twitter.com/5J1Ug3ksFj
— Citizen Free Press (@CitizenFreePres) April 12, 2024
However, Trump’s legal team claim that the accounting practices in question are widely used in the real estate industry and that New York has never pursued a case against an individual defendant for such practices.
They also argue that there are no victims in the case, as Trump’s creditors at Deutsche Bank were fully repaid and did not lodge any formal complaints about his business practices.
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The Trump camp has accused Attorney General James of weaponizing the state’s legal system to wage a politically motivated persecution campaign against the former president, citing her campaign promise to seek retribution against him before taking office.
