Trump's $175 million bond questioned by New York AG, hearing scheduled

[April 05, 2024]  By Jack Queen
 
NEW YORK (Reuters) -A New York judge will hold a hearing on April 22 over the $175 million bond Donald Trump posted as he appeals a $454 million fraud judgment against him, the state attorney general's office said on Thursday, after asking for more details about the bond. 

Former U.S. President and Republican presidential candidate Donald Trump speaks during a rally ahead of the New Hampshire primary election in Concord, New Hampshire, U.S. January 19, 2024. REUTERS/Elizabeth Frantz/File Photo

The Republican presidential candidate narrowly averted possible asset seizures when an appeals court on March 25 agreed to pause the judgment if he posted a $175 million bond within 10 days, which he did on April 1.

New York Attorney General Letitia James' office said on Thursday that Trump must offer proof that the surety company he used to post the bond, Knight Specialty Insurance Company, has enough assets to pay if his appeal fails.

The move does not necessarily imperil Trump's bond but will likely require California-based Knight to show that it can cover the bond.

The questions about the bond arose shortly after judges on Thursday spurned Trump's efforts to dismiss criminal charges over his efforts to reverse his 2020 election loss in Georgia and his handling of classified records after leaving office.

The April 22 hearing will take place a week after Trump's criminal trial on charges stemming from hush money paid to a porn star kicks off in New York, one of four indictments he faces as he campaigns to challenge Democratic President Joe Biden in the Nov. 5 election.

Trump has pleaded not guilty in all criminal cases. The fourth in Washington also stems from his efforts to overturn the 2020 election.

The judge overseeing the New York civil case, Arthur Engoron, ordered Trump to pay the $454 million in penalties and interest in February, after finding him liable for overstating his net worth and the values of his real estate holdings to dupe lenders and insurers.

Trump denies wrongdoing and is appealing Engoron's decision.

Trump's lawyer Chris Kise said in a statement that the questions about the bond were baseless.

Knight owner Don Hankey and the company's president, Amit Shah, did not immediately respond to requests for comment.

Knight has $539 million in assets, including $26.8 million in cash, it said in a court filing.

(Reporting by Jack Queen in New YorkAdditional reporting by Luc Cohen in New York; Editing by Lisa Shumaker)

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