NEW YORK (AP) — The office of New York State Attorney General Letitia James has requested more information regarding the $175 million bond posted by former President Donald Trump to prevent the collection of a civil fraud judgement against him. In court papers filed on Thursday, state lawyers gave Trump’s legal team or the bond underwriter 10 days to provide justification for the bond’s validity, potentially including details about the collateral provided by Trump. A hearing has been scheduled for April 22.
Trump’s lawyer, Christopher Kise, accused James of initiating a “baseless public quarrel” in an attempt to regain relevance after an appeals court reduced the amount required for the bond. Kise referred to the filing as yet another “witch hunt.” A request for comment was made to the bond underwriter, Knight Specialty Insurance Co.
The bond, which was posted on Monday, temporarily halted the potential seizure of Trump’s assets by the state to satisfy the $454 million judgement that he owes in a lawsuit trial. The lawsuit, brought by the Democratic attorney general, alleged that Trump and his company defrauded bankers and insurers by misrepresenting his wealth. Trump has denied the claims and is appealing the judgement.
However, the process of enforcing the judgement has encountered some obstacles. The court system initially rejected the filing and requested additional paperwork, including a financial statement from Knight Specialty Insurance. The filing, submitted on Thursday, revealed that the company has more than $539 million in assets and its related reinsurer, Knight Insurance Co. Ltd., has over $2.1 billion.
In response, James’ office filed a notice expressing concern about the sufficiency of the bond. This allows the winning party in a judgement to obtain further information from out-of-state underwriters in certain circumstances. Knight Specialty Insurance, a subsidiary of the Los Angeles-based Knight Insurance Group, is based in Wilmington, Delaware.
While the attorney general’s objection did not specify the requested information, “justifying” the bond generally entails demonstrating the financial stability of the underwriter and its ability to pay the bond amount if the judgement is upheld. A separate state appeals court has previously ruled that a bond must be collateralized by identifiable assets.
Eric Trump, son of the former president and a Trump Organization executive, claimed on social media that the bond was entirely supported by cash. The attorney general’s objection was dismissed by Eric Trump as part of the “absurdity and foolishness” surrounding the case.
The judgement against Trump, his sons, and other defendants currently totals more than $467 million and continues to increase with interest.