New York Attorney General Letitia James on Friday filed a memorandum of opposition to the surety company that holds the $175 million bond for former President Donald Trump as he appeals the $460 million decision against him in the civil fraud trial earlier this year.
The attorney general’s office says it is concerned about the financials of the bondholder, Knight Specialty Insurance company, and the collateral for the bond.
The $175 million in cash that Trump claims to have provided as collateral in a bank account is in the DJT Revocable Trust and not under Knight’s control, as it should be, the attorney general’s office argued. Because Trump still has access to the funds, he’s still able to make withdrawals, or replace the funds with other assets that could fluctuate with the markets. And if the value drops below $175 million, the bond is no longer secured, according to the attorney general.
Darn but I’m happy that I’m not in Leticia’s gun sights. Speaking of, she’s after the NRA too.
Glad to see that at least some people are doing their jobs in the US Govt.
It’s state government. Federal government is still broken beyond repair
This is the best summary I could come up with:
New York Attorney General Letitia James on Friday filed a memorandum of opposition to the surety company that holds the $175 million bond for former President Donald Trump as he appeals the $460 million decision against him in the civil fraud trial earlier this year.
The attorney general’s office says it is concerned about the financials of the bondholder, Knight Specialty Insurance company, and the collateral for the bond.
The $175 million in cash that Trump claims to have provided as collateral in a bank account is in the DJT Revocable Trust and not under Knight’s control, as it should be, the attorney general’s office argued.
The attorney general’s memorandum argued that Knight falls short on several requirements for a surety bondholder.
The attorney general also said that Knight relies on risk transfer practices that work to “artificially” bolster its surplus.
James also argues that Knight’s management is untrustworthy, violating federal law "on multiple occasions over the last several years.
The original article contains 366 words, the summary contains 160 words. Saved 56%. I’m a bot and I’m open source!
Yeah, this is just the opening salvo; the actual hearing is on Monday. But NY state law on both the payment of judgements and what constitutes an actual surety is clear, and Letitia James is just quietly locking every door around this fool with it, whether he knows it or not.
As the representative of the winning party in the original lawsuit, Letitia James already has the right to decline any surety under NY state law. But this filing and others before it demonstrate that she’s going out of her way to create an actual legal basis for the repeated rejection of this non-existent surety, just to ensure Trump’s play is ultimately unwinnable.
He’s already just another defendant who can’t pay and Ms. James is not fooled. She’s keeping her eye on the real ball legally and not getting distracted by his never-ending shouts of “Squirrel!”
The actual hearing is on Monday. Should be interesting.
