(DailyChive.com) – The judge in Trump’s New York civil fraud case handed him a major victory as he refused to invalidate the $175 million bond as requested by New York Attorney General Letitia James.
In February, Trump lost a civil fraud case as the court ordered him to pay fines of more than $450 million and asked the former president to post a bond of $464 million for full coverage of his fines to avoid any government action against his assets.
However, the former president appealed the verdict and argued that securing such a huge amount was practically impossible. The court considered Trump’s concerns and allowed him to post a $175 million bond that would stop the state government from seizing his assets while he appeals the court’s verdict.
On April 1, a California-based insurance firm, Knight Specialty Insurance Company (KSIC), agreed to provide bond coverage to the former president.
However, James asked the judge to void Trump’s $175 million bond, claiming that the insurer did not hold enough funds to back up the bond it wrote.
New York State prosecutors also expressed concerns about allowing Trump to control a bank account containing $175 million in cash that serves as collateral for the bond. They argued that KSIC should have exclusive control over these funds to prevent Trump from replacing the cash with a less stable collateral.
Trump’s legal team, however, called the bond “ultra-secure investments” and reassured the court that cash reserves would secure the bond throughout the appeals process.
The former president’s legal team also agreed to transfer full ownership of the bank account with $175 million bond money to KSIC, which eventually dismissed all the concerns of the New York state government and allowed the judge to consider the bond legal.
Apart from massive fines, Trump and his two elder sons are also barred from holding business offices in New York for allegedly inflating their assets to dupe banks and other financial institutions.
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