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Attorneys for Donald Trump waited until less than two hours before midnight Monday to file revisions to the ex-president’s $175 million bond for the judgment in his civil fraud case after New York State Attorney General Letitia James questioned the validity of his first bond. Legal experts are now questioning details of the new bond filings. Some suggest a portion of the $175 million might also currently be in use to secure other debts or obligations.
After Trump was found liable for manipulation of his net worth in the civil business fraud case and ordered to pay a $354.9 million penalty plus interest, he was required to post bond to ensure the people of the State of New York would receive $454.2 million if his appeal is unsuccessful.
“The judge said that the former president’s ‘complete lack of contrition’ bordered on pathological,” The New York Times reported two months ago.
Trump’s attorneys later declared it impossible for him to come up with a bond of that amount, and an appeals court drastically reduced the required bond amount to $175 million.
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After 10 PM Monday night, ahead of the midnight deadline, attorneys for Donald Trump in court filings said the $175 million bond is secured, and is tied to a Trump account at Charles Schwab that has over $175 million in cash, CNN reports. The filing states the California company securing the bond, Knight Specialty Insurance Company (KSIC), has administrative access to it and can pay out the $175 million if needed.
Trump’s attorneys “asked the judge to set aside the attorney general’s challenge to the bond and award him costs and fees.”
Professor of law Andrew Weissmann, a frequent MSNBC legal analyst and former Dept. of Justice official, is raising questions.
“Something’s fishy here,” he wrote late Monday night. “If Trump has $175M free and clear, why not just directly post it and not pay a fee for a surety bond? And the agreement does not give Knight a lien on the account as collateral and seems to afford Trump a two-day window to dissipate the account.”
A screenshot of a portion of the filing, posted by MSNBC’s Lisa Rubin, states, “Schwab, as custodian of the account, has acknowledged KSIC’s right to exercise control over the account within two business days of receiving notice from KSIC of KSIC’s intent to activate the control.”
Attorney and journalist Seth Abramson in a series of posts on social media claimed, “so this is looking very bad for Donald Trump. He says in his Monday night filing that the Schwab account has $175.3 million *in total*, so *if* Axos Bank is depending on that same account for a (semi-)liquid $100M in collateral on another loan, this bond filing is DOA.”
After asking, “Is Trump double-dipping?” Abramson posted more details.
8/ You’ve got to be kidding me. The collateral Trump says he gave Hankey a security interest in…
…is the same fund he used to pay off Stormy Daniels. So the use of *that very funding source* is the subject of a *criminal trial* right now.
MORE @ VOX:https://t.co/uh7OZebanf pic.twitter.com/xQAFkGjTbt
— Seth Abramson (@SethAbramson) April 16, 2024
NCRM has not verified those claims.
Attorney Lupe B. Luppen adds, “it took about ten seconds from opening the account security agreement to find a significant drafting error, which makes the signature page look like it belongs to a different agreement (DJT Jr’s attestation identifies the wrong secured party—a Chubb co.).”
READ MORE: ‘Scared to Death’: GOP Ex-Congressman Brings Hammer Down on ‘Weak’ Trump
Late Monday night on MSNBC Weissmann “expressed incredulity,” as Mediaite reported, saying of Trump and his bond: “It is just so remarkable. This is somebody who has been found by two juries to have defamed somebody, who has been found to have sexually assaulted somebody – the company of which has been found criminally liable for a decade-long tax conspiracy, criminally, and has been found to have committed fraud, has to post a bond of $175 million, is on trial starting today for a criminal case involving 34 felonies.”
“And he can’t find a frigging company that is registered in New York? Meaning, that they are licensed to do business here, which it appears they are not, and that has the wherewithal to pay the money because remember, the whole point is that you either have to put up the money now or you have to find a bond company that is sufficiently liquid that the plaintiff can look to that bond company if at the end of the day the judgment is affirmed.”
Attorney General Letitia James earlier had alleged KSIC, the company that secured the bond, was not registered to do so in New York. Experts questioned the language of that filing, claiming it did not require the company that secured the bond to actually pay out $175 million should Trump lose his appeal and be ordered to pay the full amount.
Calling it a “bizarre contract,” earlier this month The Daily Beast reported, “the legal document from Knight Specialty Insurance Company doesn’t actually promise it will pay the money if the former president loses his $464 million bank fraud case on appeal. Instead, it says Trump will pay, negating the whole point of an insurance company guarantee.”
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