NEW YORK, NY — Attorneys for former president Donald Trump agreed Monday to several new conditions on his $175 million bond deal — probably ending a challenge from state officials that had imperiled Trump’s ability to appeal a massive civil fraud judgment.
New York Attorney General Letitia James (D) had raised concerns about the bond deal, which prevented state officials from seizing Trump’s properties to fulfill a February ruling that he and his business partners owed more than $450 million for submitting years of inflated financial information to get better rates from banks and insurers.
In particular, prosecutors objected Friday to Trump maintaining control over a bank account with the $175 million in cash that backed the bond, arguing that the provider, Knight Specialty Insurance Co., should instead have sole control of those funds to ensure that Trump could’ t swap out the cash for other, more volatile collateral.
In a Lower Manhattan courtroom Monday, Trump’s attorneys assured the court that the bond would be backed by the cash reserves throughout the appeals process. “These are all ultra-secure investments,” attorney Christopher Kise said.
In the end, Trump’s attorneys agreed to five concessions demanded by the state, including making Knight the sole holder of the $175 million in cash rather than a trust operated by Trump.
The two sides have until Thursday to finalize the arrangement.
Knight, whose owner is also billionaire Trump supporter Don Hankey stepped in to offer Trump a bond in the case after the former president’s attorneys told the court that numerous other firms declined to do so. The court initially demanded a bond for the full amount of more than $450 million, but that was reduced after Trump’s attorneys argued in court that it was impossible to secure.
Tags: Trump attorneys agree conditions million bond civil fraud case
