Donald Trump’s $175 million fraud bond is teetering on the brink of invalidation if the insurance company fails to demonstrate its financial capacity to cover it, according to the New York attorney general’s office.
Former President Donald Trump’s legal battles have taken a perilous turn as questions swirl around the $175 million bond he posted in his civil fraud case. The bond, crucial for his defense, faces a critical deadline amid concerns that the insurance company, Knight Specialty Insurance Company, may not have the financial muscle to cover it.
In a dramatic twist, the attorney general’s office has demanded urgent proof of the insurer’s ability to foot the bill, threatening to invalidate the bond within a mere 10 days if satisfactory evidence isn’t furnished. The stakes couldn’t be higher as Trump and his business associates scramble to salvage their defense strategy.
As reported by Forbes, Knight Specialty Insurance Company, helmed by billionaire Don Hankey, finds itself under intense scrutiny, with doubts looming over its capacity to withstand the financial burden. The company’s fate hangs in the balance as it races against time to demonstrate its solvency and rescue Trump’s legal predicament from potential collapse.
With the clock ticking ominously, Trump and his co-defendants are under immense pressure to shore up their defense. Yet, uncertainty shrouds their prospects as they grapple with the looming threat of a bond rendered worthless, leaving them vulnerable to the full force of the law.
A hearing regarding these issues is scheduled for April 22, indicating that any potential invalidation of the bond may not occur before then. Trump’s legal team and Knight have not yet commented on the attorney general’s filing or indicated whether they will provide additional proof.
Meanwhile, Trump continues to appeal the civil fraud case verdict. While the appeals court has allowed him to post the $175 million bond during the appeals process, he remains liable for the full amount owed, which accrues interest at a rate of nine percent annually.
The total amount owed by Trump, his sons, and former CFO Allen Weisselberg continues to increase each day, with interest accumulating until the debt is fully paid off, notwithstanding the bond and ongoing appeal efforts.
