Former President Donald Trump accepted five new conditions demanded by New York Attorney General Letitia James in order to get his controversial $175 million bond accepted in his civil fraud case, according to a new analysis.
"The new conditions were needed, prosecutors argued, because they didn’t trust the financial health of the insurance company, Knight Specialty Insurance, who posted the bond for Trump.Josh Fiallo of The Daily Beast writes. "They noted that Knight had violated federal law on multiple occasions and that they relied on risk-transfer practices to artificially bolster the surplus it used to cover Trump’s bond."
Among the conditions Trump accepted was to have Knight Specialty Insurance put aside the funds securing Trump's bond and not spend them until the matter is resolved, and to provide monthly statements to the Manhattan District Attorney ensuring compliance, the Daily Beast reports. If all these conditions are met, then Trump will be protected from seizure of assets during his appeal of the ruling.
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Trump was found liable for over $450 million in damages and back interest after Judge Arthur Engoron determined Trump and his two adult sons inflated the value of Trump Organization assets to reduce their tax liability and loan interest obligations. The former president has consistently denied any wrongdoing in the valuations, and is appealing the decision.
But he had considerably difficulty putting up the full bond. A federal appeals court stepped in just hours before James was authorized to begin seizing his assets, reducing the amount of the bond to $175 million and giving him extra time to find a backer.
Knight Specialty Insurance is owned by Don Hankey, a billionaire who made his fortune in subprime used car loans, and whose companies were ironically sued by Trump's own administration for allegedly ripping off troops. From the outset, the New York Attorney General's office raised concerns about the arrangement.
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