By Jonathan Stempel
NEW YORK (Reuters) – The company that provided Donald Trump with $175 million in bail in his New York civil fraud case said it had “substantial financial credibility,” rejecting a suggestion from the state’s attorney general that it did not was qualified to provide it. staff.
Trump obtained the bond from Knight Specialty Insurance Co as a guarantee so he could appeal the $454.2 million judgment that state Attorney General Letitia James won in February.
James objected to the bond on April 4 because Knight did not have a “certificate of qualification,” and demanded that the insurer or Trump’s lawyers “justify” the bond “within ten days.” The insurer is owned by billionaire Trump supporter Don Hankey.
In a filing Monday evening in a state court in Manhattan, Knight said the bond was fully backed by cash in a Charles Schwab account, and that the bond had access to nearly $2.2 billion in assets at the parent company if something went wrong would go.
Knight, which is licensed in Delaware, also said it has had the authority in New York since 2021 to issue the type of bond Trump secured.
“By any standard, KSIC has therefore provided assurances to (James) that it will be able to collect the designated amount if the judgment is affirmed on appeal,” Knight said. “KSIC was and is authorized to issue the bond.”
Lawyers for Trump, his adult sons and the Trump Organization signed Knight’s filing.
James’ office declined to comment Tuesday. A hearing is scheduled for April 22.
Hankey made his fortune through subprime auto lending, with some regulators criticizing his companies’ debt collection tactics. According to Forbes magazine, he is worth $7.4 billion.
Judge Arthur Engoron issued the $454.2 million judgment after finding that Trump fraudulently inflated his wealth and real estate to trick banks and insurers into offering better terms.
Trump was originally supposed to receive a bond for the entire verdict while he appealed, but a state appeals court allowed him to post a smaller bond.
(Reporting by Jonathan Stempel in New York; Editing by Daniel Wallis)
