Former President Donald Trump and his co-defendants have successfully obtained a $175 million bond in their ongoing civil fraud case in New York, as revealed in a recent court filing.
Donald Trump was able to secure the bond by partnering with Knight Specialty Insurance Company, which is owned by the privately-held Hankey Group. The chairman of the company has openly expressed his support for Donald Trump, as he considers himself a supporter of the former president.
Don Hankey, speaking to ABC News, expressed his satisfaction with the opportunity to assist the former president at Knight Insurance. He clarified that the decision is primarily a business one, but also mentioned his personal support for the ex-president.
Hankey mentioned that his company was initially engaged in discussions to underwrite the original $464 million bond in the case. However, when a New York appellate court recently lowered the amount to $175 million, Hankey noted that his company reinitiated their endeavor to underwrite the bond.
According to Hankey, Donald Trump provided all the collateral in cash, despite it being a relatively low amount.
Hankey couldn’t remember if Trump used bonds as collateral for the completed bond. He mentioned that his company examined some of the former president’s bonds, describing them as high-quality securities with an investment-grade rating.
Hankey expressed confidence in the quality of their collateral.
According to Hankey, he has supported the former president’s campaign with his contributions, although he couldn’t recall the exact amount he donated.
ABC News reached out to an official from the New York attorney general’s office for comment, but they declined to provide any response.
President Trump has fulfilled his promise and posted bond, according to his attorney Alina Habba. In a statement on Monday evening, she expressed his anticipation of vindicating his rights on appeal and overturning what he believes to be an unjust verdict.
Last week, the Appellate Division of New York granted a 10-day stay of the $464 million judgment in the civil fraud case involving the former president, his adult sons, and two former Trump Organization executives. Additionally, the panel allowed them to post a reduced bond of $175 million.
According to Trump’s lawyers, the former president faced difficulties in obtaining a bond for the full judgment due to financial constraints. They claimed that he had been rejected by over 30 bond companies.
Defense lawyers argued that if an appeals court did not intervene, Trump would face irreparable harm in having to sell off his namesake properties before he could fully exhaust his appeal of the fraud ruling.
In February, Judge Arthur Engoron fined Trump and his co-defendants after a three-month trial. The judge found that they had committed business fraud for over a decade by falsely inflating the former president’s net worth in order to secure more favorable loans and business deals.
Engoron expressed his shock and disbelief at the fraudulent activities he discovered, emphasizing that they were so blatant and outrageous that they were impossible to ignore.
Trump has consistently maintained his innocence and his legal team has filed an appeal against the court’s decision. They argue that the amount of disgorgement ordered is unconstitutional, disproportionate, and based on flawed reasoning. Trump’s defense lawyers contend that Judge Engoron improperly applied the statute of limitations to Trump’s actions and assert that New York Attorney General Letitia James failed to demonstrate the relevance of Trump’s alleged misrepresentations to his lenders.
Defense lawyers argued in a March filing that there is no evidence or finding by the Supreme Court suggesting that the lenders and insurers would not have provided loans and policies to the defendants on the same terms, even without the alleged “misrepresentations.”
If the appeal is unsuccessful, the former president and his co-defendants will be responsible for paying the full $464 million judgment.
If Trump is unable to pay the full judgment amount and his appeal is not successful, James has the authority to seize Trump’s assets to enforce the judgment.
In a recent interview with ABC News, James stated that if the individual lacks the necessary funds to settle the judgment, they would pursue legal means to enforce it. The intention is to request the court to seize the individual’s assets as a means of ensuring payment to the people of New York.
In the defamation lawsuit filed against Trump by writer E. Jean Carroll, Trump obtained a $92 million bond from insurance company Chubb. This came after a jury determined in January that he was responsible for defaming her. Trump, who maintains his innocence, has filed a notice of appeal in this case.
The former president utilized a brokerage account as collateral for the bond.
