New York Attorney General Letitia James is making headlines once again as she pushes the judge in former President Donald Trump’s civil fraud case to void the $175 million bond that Trump previously posted to appeal his New York civil lawsuit. In a 26-page filing obtained by Fox News Digital, James raises concerns about the insurance company backing the bond.
The bond was posted by California-based Knight Specialty Insurance Company (KSIC), but James argues that the insurer is “not authorized” to write business in New York. She points out that KSIC is a small insurer with a total policyholder surplus of just $138 million, which may not be sufficient to cover the bond amount.
According to New York state law, smaller businesses like KSIC are not permitted to expose themselves to liabilities greater than 10 percent of their surplus. James also highlights that KSIC has been found to have operated affiliated companies in violation of federal law, raising further doubts about its qualifications to act as the surety in this case.
The filing also reveals that KSIC sends 100% of its retained insurance risk to affiliates in the Cayman Islands, a practice known as “shadow insurance” that artificially bolsters its surplus. James argues that the Court should deny the Motion and require Defendants to post a replacement undertaking within seven days.
This latest development comes after Judge Arthur Engoron ruled in September that Trump and the Trump Organization had committed fraud while building their real estate empire. The judge also barred Donald Trump Jr. and Eric Trump from serving as officers or directors of any New York corporation for two years.
Trump has consistently denied any wrongdoing and called the case against him a “witch hunt.” The attorney general’s office is expected to discuss these issues at a hearing on Monday, coinciding with the opening statements in Trump’s New York criminal trial.
As the legal battle continues to unfold, all eyes are on the courtroom to see how this high-profile case will ultimately be resolved. Stay tuned for updates on this developing story.
