The New York Attorney General Letitia James' office has moved to invalidate the $175 million bond secured by former President Donald Trump to delay payment of a larger monetary damage award in his civil fraud case.
What Happened: The New York attorney general’s office has filed a request with a judge to nullify the $175 million bond that Trump secured, arguing that the former president and his co-defendants failed to prove the surety used to obtain the bond has the money to back it, The Hill reported.
The bond was secured by the California-based Knight Specialty Insurance Company. The state lawyers contended that Knight is a “small insurer that is not authorized to write business in New York” and had “never before written a surety bond in New York” until Trump.
The company’s total policyholder surplus is just $138 million, and under New York state law, companies like Knight can’t expose themselves to liabilities greater than 10% of their surplus.
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Why It Matters: The civil fraud case against Trump and his organization was initiated by the New York Attorney General. The case alleges that Trump and his organization manipulated the value of assets to obtain loans and tax benefits.
The judge is expected to address the issues raised by the attorney general’s office in a hearing on Monday, which will run parallel to the opening statements in Trump’s New York criminal trial.
These developments come amid a series of dramatic events surrounding Trump’s legal proceedings. On Friday, a protester set themselves on fire outside the courtroom where Trump’s hush money trial was being held. This incident briefly interrupted the jury selection process.
Donald Trump is currently dealing with legal challenges on both federal and state levels, across different places like New York City, Washington, Atlanta, Florida, and Georgia. Despite the allegations, he continues to assert his innocence, describing the cases as a “witch hunt.”
According to Real Clear Politics, at the national level, Trump held 44.6% support among voters, While Biden trailed with 44.2% support.
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