(BrightPress.org) – Attorneys for Donald Trump and the New York Attorney General’s office came to an agreement on Monday, April 22nd over concerns about the $175 million bond posted by Trump. The deal between Trump attorneys and the state happened during a 20-minute recess, cutting short what could have been a full day in court in Manhattan.
Trump posted the cash bond to prevent New York Attorney General Letitia James from seizing his assets while he appeals the initial ruling in a civil fraud case. James asked Judge Arthur Engoron to void the bond on Friday claiming the company that provided the bond, Knight Specialty Insurance Co. out of California, is not authorized to write bonds in the state of New York. Trump put up $175 million in cash as collateral for the bond in a cash account with Charles Schwab Financial Services. James also had concerns about the security of the collateral since Trump had access to the account.
Attorneys for both sides huddled and came to an acceptable agreement. The cash account, which has already gained over $700,000 in interest, will be maintained by Schwab. Knight Specialty Insurance Co. was granted exclusive control of the account. Engoron approved the deal. Trump’s attorney Christopher Kise said the money is safe and secure in a bank account, “No tricks, no games, no trapdoor.”
Knight Specialty Insurance Co. has never provided this type of court bond. According to Trump, he was forced to work with the company from California because the original judgment in the case prohibited him from dealing with financial institutions in New York.
If Trump loses his appeal, he will be required to pay the entire amount of the $454 million judgment imposed after losing the initial case brought forth by James. James accused Trump of fraud, claiming he lied on financial statements. In February, Judge Engoron concluded that Trump had exaggerated the worth of at least two of his properties to intentionally deceive banks and insurers to obtain better interest rates.
Copyright 2024, BrightPress.org
