Letitia James Goes After Trump’s $175 Million Bond

New York Attorney General Letitia James is building doubts around former President Donald Trump’s $175 million bond deal in his civil fraud case, as she questions whether the company covering the bond is capable of fulfilling its obligation.

Trump posted a $175 million bond on April 1, averting a situation where James can seize his asset while his appeals on Judge Arthur Engoron’s ruling plays out.

Knight Specialty Insurance Company underwrote the former president’s bond, pledging to cover the full bond amount should Trump lose his appeal and fail to make payment. In order to obtain Knight Specialty Insurance Company’s coverage, Trump paid the company a fee and pledged collateral.

However, in a Thursday court filing, James questions whether the company can cover the full amount of the bond.

Noting that Knight Specialty Insurance Company is not registered to issue appeal bonds in New York and has never posted a similar bond in court before Trump’s case, the attorney general demanded that either the company or Trump’s legal team file paperwork to “justify” the bond.


The paperwork she demanded is meant to clarify whether Knight has the financial capability to fulfill its pledge to pay the $175 million should Trump default.

James gave the company or Trump’s lawyers 10 days to file the paperwork she demanded.

Trump’s legal team is not buying James’ move, as attorney Christopher M. Kise slammed the case as a “baseless and vindictive political crusade.” According to him, questioning the bond is an effort by James “to stir up some equally baseless public quarrel in a desperate effort to regain relevance.”

Before an appeals court reduced Trump’s bond from over $500 million to $175 million and gave him till April 1 to pay the bond, James was prepared to move on the confiscation of Trump’s assets, particularly his skyscraper on 40 Wall Street and his Westchester golf course. However, her potential seizure efforts hit a roadblock when Trump posted his bond on Monday, keeping his assets safe while he appeals Engoron’s ruling in which he was slammed with a total of $464 million in penalties.