Trump accepts new restrictions on $175 million bond in civil fraud case
(Reuters) — Former President Donald Trump agreed Monday to additional restrictions on the $175 million bond in his New York civil fraud case, resolving concerns of the state attorney general that the funds were not secure.
The bond issued by Knight Specialty Insurance is meant to secure Mr. Trump's compliance with a $454.2 million judgment won by New York Attorney General Letitia James if he does not succeed in an appeal. Knight is owned by billionaire Trump supporter Don Hankey.
Justice Arthur Engoron imposed the penalty after finding that Mr. Trump fraudulently inflated his net worth and real estate assets to deceive banks and insurers into providing better terms.
Ms. James had challenged the bond this month, saying Mr. Trump still had access to the Charles Schwab account pledged to the insurer as collateral.
But at a hearing Monday, down the block from where jurors heard opening arguments in Mr. Trump's criminal hush money trial, lawyers for Mr. Trump and Knight agreed that the funds would remain as cash and not be traded for securities.
They also agreed that Knight would have exclusive control of the account and not withdraw funds, and to provide Mr. James with monthly statements to assure that the cash isn't going anywhere.
The agreement was reached after Justice Engoron questioned the security of the collateral.
“You keep using the word agreement. What if they break the agreement?” he asked Trump's lawyer Christopher Kise. “It all seems like a house of cards.”
