A legal setback looms for former President Donald Trump as a New York court rejected an insurance company’s attempt to post a $175 million bond for him while he appeals a fraud judgment.
The decision by the court not to accept the bond from Knight Specialty Insurance Company could pave the way for New York Attorney General Letitia James to initiate enforcement proceedings against Trump’s properties.
The ruling comes after Knight Specialty Insurance’s initial paperwork was rejected by the court, which expressed the need for more information regarding the company’s financial backing. Although Knight Specialty Insurance filed new paperwork on April 4, doubts remain about its ability to fulfill the bond requirement.
Legal experts, including former federal prosecutor Eric Lisann, have raised concerns about Knight Specialty Insurance’s capacity to post the bond and suggested that the company may ultimately be liable for the full amount.
Lisann noted that Knight’s guarantee to the court could leave it vulnerable if it lacks the liquidity to pay the $175 million bond on demand.
Trump’s legal team has yet to comment on the latest developments, and Knight Specialty Insurance Company could not be reached for immediate comment by Newsweek.
The saga began after a New York judge fined Trump $454 million in February for fraudulently inflating the value of his assets.
Trump’s legal team attempted to post a $175 million bond on April 1 to prevent the seizure of his assets while he appeals the ruling. However, the bond was rejected due to missing paperwork, including a “current financial statement.”
Despite the setback, Trump remains defiant in his innocence, asserting that he will continue to fight the charges.
