Trump’s $175M bond in civil fraud case settled with deal
NEW YORK — New York state lawyers and an attorney for former President Donald 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. in Delaware 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 over $700,000.
The bond stops the state from potentially seizing Trump’s assets to satisfy the more than $454 million that he owes from losing a court case brought by Letitia James, the Democratic state 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 and presumptive Republican nominee denies the claims and is appealing the judgment.
Judge Arthur Engoron, who issued the huge judgment in February 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 Trump attorney Christopher Kise with examples of how the money Trump had posted might not be available for collection if the judgment were upheld.
But Andrew Amer, an attorney for New York state, proposed settlement terms soon after he began speaking at the hearing.
He said the state wanted extra assurances because Trump had raised the money with help from a relatively small out-of-state insurance company.
As part of the deal, Knight Specialty Insurance, part of the Los Angeles-based Knight Insurance Group, will have exclusive control of the $175 million and will submit to the jurisdiction of the New York state court while agreeing to not move the money into mutual funds or other financial instruments.