New York Attorney General Letitia James got a surprise in court on Monday that she likely was not expecting, and it was to former President Donald Trump’s advantage.
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On Friday, Letitia James asked a judge to void Trump’s $175 million bond that he posted to appeal the civil fraud case. James argued that California-based Knight Specialty Insurance Company (KSIC) is not approved to do business in New York.
In addition, James questioned whether KSIC has the funds to support Trump’s $175 million bond.
“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,” Letitia James’ office wrote in a 26-page filing according to Fox News. “The face amount of the bond exceeds this limitation by $161.2 million.”
In addition, she argued: “KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years.”
“KSIC does not now have an exclusive right to control the account and will not obtain such control unless and until it exercises a right to do so on two days’ notice,” her office wrote in the filing.
James was asking Judge Arthur Engoron, who presided over Trump’s fraud case, to vacate the $175 million bond and require the former president to post another within 7 days or allow her to begin seizing his property.
But Engoron would have none of it, per Fox News:
Former President Trump’s $175 million bond judgment stemming from his non-jury civil trial will stand, a New York judge ruled Monday after New York Attorney General Letitia James attempted to invalidate it.
Lawyers for James on Monday argued that the court should void Trump’s slashed judgment of $175 million in his non-jury civil fraud trial. James questioned whether the company that posted the massive bond, Knight Specialty Insurance, could actually pay the bond if needed.
The court, though, ruled against James, deciding that the bond will stand.
The court has ruled that $175 million must be paid in cash and cannot be invested in mutual funds or securities due to the possibility of fluctuations in value. The court further stated that Knight Insurance is not permitted to trade or transfer the money but will retain control of the account.
The court ruled that Knight Insurance must provide James with a monthly financial statement showing the $175 million in cash. Additionally, any changes to the agreement must have court approval, Fox added.
WATCH:
NY AG Letitia James tried to sneak in a ruling vacating Trump's $175 million bond while he's stuck in a Manhattan courtroom, but the judge said NO.
Republicans should fight Dem lawfare with GOP lawfare. These ppl won't quit until they themselves are hauled before courts. pic.twitter.com/lAOzFYifbN
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