Judge approves safeguards for Donald Trump's $175 million civil business fraud appeal bond

[pnwmom]

Source: USA Today

New York Judge Arthur Engoron approved a new agreement Monday between Donald Trump's lawyers and state Attorney General Letitia James to reinforce the $175 million bond he posted to appeal a $454 million judgment in a civil fraud trial for inflating the value of his real estate empire in statements to lenders.

James asked Friday for Engoron to void the bond by arguing Knight Specialty Insurance Co. isn’t authorized to write bonds in New York. The collateral for Knight bond is a cash account with Charles Schwab financial services and state lawyers raised concerns that Trump had access to the account.

But at a hearing Monday, Trump lawyer Christopher Kise assured Engoron that Trump couldn't move money out of the account without Knight's approval, and Schwab would not allow it.

"We have to put the money somewhere," Kise said.

Read more: https://www.usatoday.com/story/news/politics/elections/2024/04/22/donald-trump-appeal-bond-civil-fraud-175-million/73410134007/

[bluestarone]

1. So, my question

Is Letitia James agreeable to this?

[mobeau69]

2. What about the fact that they aren't authorized to write bonds in NY?

Huh?

[onenote]

8. Even James' basically gave up on that in her pleading.

Last edited Mon Apr 22, 2024, 03:34 PM - Edit history (1)

She said that the lack of a certificate was what allowed her to challenge the sufficiency of the bond even if the certificate wasn't necessary, which appeared to be the case upon a close reading of the relevant statutory provisions.

From James' Memorandum of Law in opposition to the surety's attempt to justify the bond:

"While the absence of the certificate is what allowed Plaintiff to file the notice under CPLR §2506(a), it is not the basis for why the Court should find there is no justification for KSIC to be the surety on a $175 million undertaking. Nor is Plaintiff under any misapprehension about KSIC’s ability to write business in New York on an excess lines basis."

https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=E/oR7WnxPeT2tSnZpOGlBA==

[mobeau69]

15. Thanks. I guess if you've got the dough you're good to go.

[Think. Again.]

3. This a major FRAUD case...

...if there's any question about the validity of his bond, it needs to be rejected.

[jimfields33]

4. Sounds like it's a done deal.

Obviously the judge found the new guidelines to be acceptable. The judge had the final say.

[Irish_Dem]

5. The judge is very foolish if he is trusting Trump or his attorneys.

Trump is convicted of fraud trying to con the court.

[onenote]

7. I was wondering how long it would be until someone threw the judge under the bus.

[Irish_Dem]

9. It is called the Court of Public Opinion.

When judges do foolish things I am going to speak out.

And the judges lately have been doing lots of stupid things.

Accepting the word of a man he just convicted of fraud is stupid.

[onenote]

10. So noone convicted of fraud should be allowed to get an appeals bond?

That would be unprecedented.

[Irish_Dem]

11. I didn't say that.

The judge is very foolish to accept a promise from a ruthless sociopath he just
convicted of fraud.

Very stupid.

Accepting the word of a know liar is quite unprecedented by normal people
with common sense.

[pnwmom]

12. Of course that isn't what they were saying. The Knight company, however,

isn't registered in NY and doesn't seem to have enough of its own assets to guarantee a bond of that size. Its parent company is in the Cayman Islands. So there were a number of red flags about this bond.

Hopefully Engoron has made the right decision.

[onenote]

13. Not being registered in New York wasn't disqualifying.

Even James essentially acknowledged that in her Memorandum of Law in opposition to the surety's attempt to justify the bond.

From that Memorandum of Law:

"While the absence of the certificate is what allowed Plaintiff to file the notice under CPLR §2506(a), it is not the basis for why the Court should find there is no justification for KSIC to be the surety on a $175 million undertaking. Nor is Plaintiff under any misapprehension about KSIC’s ability to write business in New York on an excess lines basis. Rather, KSIC is not an acceptable surety for the Bond because Movants have failed to demonstrate that (i) the face amount of the Bond is sufficiently collateralized by identifiable assets, (ii) KSIC’s financial capacity adequately supports this enormous undertaking, and (iii) KSIC’s management is sufficiently trustworthy and competent.

https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=E/oR7WnxPeT2tSnZpOGlBA==

[gfwzig]

6. I always thought of Schwab as kind of sleezy

Charles Schwab the steel baron is the man responsible for the Great Johnstown Flood

[cstanleytech]

14. I hope the checked to make sure that Trump's kids can't as well.

[republianmushroom]

16. Question

Why are theses article ok to comment on : Trump lawyer defends $175 million bond in New York civil fraud case
https://www.democraticunderground.com/?com=post&post&forum=1014&pid=3229494

Judge approves safeguards for Donald Trump's $175 million civil business fraud appeal bond
https://www.democraticunderground.com/10143229527

While this article Is locked as off-topic New York judge sets new conditions on Trump's civil fraud bond

https://www.democraticunderground.com/10143229654