Judge Engoron Makes a Major Announcement on Trump’s $174M Bond

by Jessica
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Judge Arthur Engoron has scheduled a hearing to determine the legitimacy of the company that insured Donald Trump’s bond.

This move comes amidst concerns raised by James regarding the financial solvency of Knight Specialty Insurance Company, the entity that backed Trump’s bond in a civil fraud case.

The case stems from Trump being found liable for damages totaling $454 million, which increased with accrued interest.

Trump sought to reduce the bond amount to $174 million, a request that was granted by the court. Subsequently, Knight Specialty Insurance Company became the bond sponsor for Trump.

However, James has expressed reservations about the sufficiency of Knight Specialty Insurance Company as the surety for Trump’s bond.

She pointed out that the company is operating without a certificate of qualification in New York, where regulators are required to ensure that insurers are financially sound and capable of fulfilling their obligations.

Since Knight Specialty Insurance Company is based in California, James argued that New York lacks access to necessary information about the company’s financial standing.

She stressed the importance of the company proving its financial ability to cover the substantial sum in the event that Trump loses his appeal.

According to an article by Raw Story on Thursday, April 4, 2024, in response to James’s concerns, Knight Specialty Insurance Company provided documents to the court indicating assets totaling $537 million as of December 31, 2023.

However, James has pressed for further clarification regarding the specific assets Trump has posted to secure the bond and ensure repayment if the appeal fails.

MSNBC legal analyst Lisa Rubin questioned the identifiable assets Trump has pledged to guarantee repayment of the bond, which could potentially exceed $454 million if the judgment stands.

The hearing scheduled by Judge Engoron for April 22 at 10 a.m. E.S.T. aims to address these concerns and determine the legitimacy of Trump’s bond sponsor.

Meanwhile, Trump’s tangential political connections to Knight Specialty Insurance Company’s CEO, who holds a majority stake in Axos Bank, have raised additional scrutiny.

Axos Bank has refinanced two Trump properties, adding layers of complexity to the situation.

As the legal proceedings unfold, the outcome of the hearing will likely have significant implications for the ongoing civil fraud case and Trump’s financial obligations.

For now, all parties involved await the court’s decision on the matter.

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