New York AG Letitia James moves to void $175 million bond posted by Trump in civil fraud case

On Friday, the New York Attorney General Letita James asked a judge to void the $175 million bond posted by former President Donald Trump as he appeals the judgment from his New York civil fraud case.  
 

The bond was posted to secure the funds owed by Trump in the case, but the AG's office argues that there is insufficient collateral to back the bond.  

According to CNBC, the AG's filing contends that the surety used by Trump to obtain the bond, Knight Specialty Insurance Company, is “a small insurer that is not authorized to write business in New York and thus not regulated by the state’s insurance department, had never before written a surety bond in New York or in the prior two years in any other jurisdiction, and has a total policyholder surplus of just $138 million.”  

The AG's office opposed the joint motion by Trump and the insurance company to justify the insurer as the surety holding the bond. Lawyers representing Attorney General Letitia James have requested Judge Arthur Engoron to compel Trump and other defendants to provide a replacement bond within seven days of ruling on the matter.   

A hearing regarding the dispute over the bond is scheduled for Monday. Judge Engoron had previously found Trump and the Trump Organization liable for fraud last February, following allegations that the former president had exaggerated the value of his real estate assets.  

Trump was ordered to personally pay $454 million plus interest in damages and has since appealed the verdict, posting a bond to guarantee the judgment pending the outcome of his appeal.