Lawyers representing Donald Trump and New York Attorney General Letitia James recently reached a compromise regarding the $175 million bond in Trump’s civil fraud case. The compromise stipulates a list of restrictions designed to secure the funds in the bond, preventing their exchange for less secure assets.
The compromise also ensures that Knight Specialty Insurance Company retains exclusive control over the account, prohibiting withdrawals or trading of any funds. This agreement stems from last week’s move by James’ office to annul the bond, raising concerns that Trump might retain inappropriate control over the $175 million cash collateral.
Trump’s lawyer, Chris Kise, readily agreed to the restrictions, emphasizing that the funds are securely held in a bank account. Andrew Amer, representing James’ office, initially argued for stricter measures to prevent the potential substitution of funds with less secure assets. However, the compromise ultimately allayed those concerns.
Trump faces a judgment of $454 million, mostly his responsibility, with his former executives and sons liable for the rest. Judge Arthur Engoron found them culpable for repeatedly inflating Trump’s net worth in business dealings over several years by as much as $3.6 billion annually. Additionally, Trump is barred from managing a New York business for three years, while his sons face a two-year prohibition.
