Trump’s $175M bond settled with cash promise
New York state lawyers and an attorney for former President Trump settled their differences Monday over a $175 million bond that Trump posted to block a large civil fraud judgment while he pursues appeals.
The agreement cut short a potential daylong court hearing in Manhattan that was to feature witnesses.
As part of a deal struck during a 20-minute recess, lawyers for Trump and Knight Specialty Insurance Co. agreed to keep the $175 million in a cash account that will gain interest but faces no downside risk. The account so far has grown by more than $700,000.
The bond stops the state from potentially seizing Trump’s assets to satisfy the more than $454 million that he owes after losing a court case brought by the Democratic attorney general. She had alleged that Trump, along with his company and key executives, defrauded bankers and insurers by lying about his wealth.
The ex-president denies the claims and is appealing the judgment.
Judge Arthur Engoron, who in February issued the huge judgment after concluding that Trump and others had deceived banks and insurers by exaggerating his wealth on financial statements, presided over Monday’s hearing.
Engoron challenged Kise with examples of how the money Trump had posted might not be available for collection if the judgment were upheld, leading Kise to respond in one instance that the judge’s “hypothetical is ... wildly speculative.”
But Andrew Amer, an attorney for New York state, proposed settlement terms, saying the state wanted extra assurances because Trump had raised the money with help from a relatively small, out-of-state insurance company.