New York Attorney General Letitia James raised concerns on Thursday about the financial qualifications of the California company that issued the $175 million bond for former President Donald Trump in his New York civil fraud case.
James has filed a request in court for Knight Specialty Insurance Company to provide evidence of their financial capability to pay the bond in the event that Trump’s appeal is unsuccessful.
The New York Department of Financial Services does not have the California company registered.
In February, New York Judge Arthur Engoron imposed a nearly half-billion-dollar civil fraud judgment on the former president. The judgment came as a result of a dispute where Trump and his adult sons were found liable for engaging in “numerous acts of fraud and misrepresentation.” Their objective was to inflate Trump’s net worth and secure more favorable loan terms.
Despite the allegations, Trump has consistently denied any wrongdoing and has taken steps to appeal the decision in the case.
During a short interview with ABC News, Don Hankey, the chairman of Knight Specialty’s parent company, expressed complete confidence and stated that he had “no concerns at all.”
Hankey expressed confidence in the approval process, stating that their applications and bonds rarely get turned down. He speculated that the scrutiny involved in the process ensures that every detail is thoroughly examined and all necessary requirements are met.
“That’s a significant sum for anyone,” Hankey remarked.
Christopher Kise, Trump’s defense attorney, strongly criticized the attorney general for doubting the reliability of the surety.
Kise expressed his frustration with the situation, stating, “This feels like another witch hunt! Instead of facing the consequences of their embarrassing loss in the First Department, the Attorney General is now trying to create a baseless public quarrel in a desperate attempt to regain relevance.”
