New York Civil Fraud Case: Donald Trump Lawyer Defends $175 Million Bond

(CTN News) – According to a Donald Trump lawyer, the insurer that provided the former president with a $175 million bond in his civil fraud case in New York had the power and strength to issue it.

It is designed to ensure Trump’s compliance with a $454.2 million judgment won by state Attorney General Letitia James if he fails to appeal.

Donald Trump, a Republican presidential candidate, inflated his net worth and assets to deceive banks and insurers into providing better terms, according to Judge Arthur Engoron.

The bond has been challenged by James this month, claiming Knight does not have a certificate of qualification and Trump still controls the Charles Schwab account pledged to Knight.

Don Hankey, a billionaire Trump supporter, owns Knight Group.

Christopher Kise, Donald Trump’s lawyer, told Engoron at the hearing that Trump would not be able to move money outside of the account without Knight’s permission. Schwab would also not allow it, he said. A place must be found for the money, Kise said.

The collateral, however, was questioned by Engoron.

What if they break the agreement?” he asked, keeping the word agreement in his vocabulary. I feel like I’m living in a house of cards.”

The jury in Trump’s criminal hush money trial is hearing opening arguments just down the street while Engoron is considering Trump’s bond.

Outside the courtroom, Donald Trump defended the bond.

The amount of cash we put up is $175,” Donald Trump said. “She should not be complaining about the bonding company. The bonding company does the right thing since I put up the money. I have plenty to put up.”

Knight has confirmed that it is authorized to issue the bond, which is fully backed by cash in the Schwab account, and that it has access to nearly $2.2 billion in assets at its parent company in the event of a problem.

A Donald Trump-owned trust still controls the account, and Knight’s own financial arrangements do not appear sufficient to cover the bond amount, James said in court papers.

Trump said in an interview that Hankey charged him a low fee because he had no expectation of problems.

We thought this would be an easy procedure without any legal problems, but it isn’t working out that way.” he said. Our charges were probably too low.”

Several regulators criticised Hankey’s companies’ debt collection tactics as they made their fortunes in subprime car loans. According to Forbes magazine, his net worth is $7.4 billion.

Originally, Trump had to obtain a guarantee for the entire verdict while he appealed, but a state appellate court allowed him to post a smaller bond.

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