NY AG Letitia James gives company that guaranteed Trump’s bond 10 days to “justify the surety”

James wants answers about company's qualifications and what collateral Trump put up

By Igor Derysh

Managing Editor

Published April 5, 2024 12:50PM (EDT)

State Attorney General Letitia James speaks during Governor Kathy Hochul signing the Clean Slate Act into the law at Brooklyn Museum on November 16, 2023. (Lev Radin/Pacific Press/LightRocket via Getty Images)
State Attorney General Letitia James speaks during Governor Kathy Hochul signing the Clean Slate Act into the law at Brooklyn Museum on November 16, 2023. (Lev Radin/Pacific Press/LightRocket via Getty Images)

New York Attorney General Letitia James on Thursday filed a notice seeking more information about the company that backed former President Donald Trump’s $175 million bond in his civil fraud case, according to NBC News.

The firm, Knight Specialty Insurance Company, is not admitted in New York and James "takes exception to the sufficiency of the surety to the undertaking" given to Trump without a certificate of qualification, the filing said.

James asked Trump or KSIC to "file a motion to justify the surety bond," or provide more information about the collateral Trump put up within 10 days.

Don Hankey, the head of KSIC, said the bond was fully collateralized with cash from Trump’s company, according to the report. Hankey had been negotiating to post a $557 million bond with the Trump Organization before an appellate court lowered the bond to $175 million.

Trump had to post the bond to appeal the $464 million civil fraud judgement against him and his company. He is still on the hook for the full amount if he loses the appeal. A hearing is scheduled for April 22.

“He looks forward to vindicating his rights on appeal and overturning this unjust verdict,” Trump attorney Alina Habba said on Monday.


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