New York AG ‘objects’ to Trump’s bail in fraud case | Insurance business America
“There are serious questions as to whether this bond was deposited properly,” says the expert
Insurance News
By Ryan Smith
According to New York’s attorney general, the $175 million bond posted by former President Donald Trump to appeal his fraud verdict is missing key information typically included in such bonds.
However, according to a report from CBS News, the bond provided by Knight Specialty is missing information that is typically included in such bonds. The missing information includes a financial statement from Knight SPecialty, a certificate of qualification from the New York Department of Financial Services and information regarding the power of attorney of the bond issuer.
New York Attorney General Letitia James filed papers with the court on Thursday saying her office “objects to the adequacy of the bond.” James’ filing stated that Knight Specialty was not a licensed carrier in New York and did not have the certification of qualification required by state insurance law, CBS News reported.
Donald Trump didn’t put up any cash for his bond.
In fact, AG Letitia James submitted that the company that did this, Knight Specialty Insurance Company, didn’t even bother to give them certification that they were even qualified to post it for him.
She now asks them to do so. Otherwise… pic.twitter.com/a8ya5Or2mq
— Art Candee 🍿🥤 (@ArtCandee) April 4, 2024
Trump attorney Christopher Kise told CBS News that James’ filing was “another witch hunt” and an attempt to “incite a baseless public strife.”
According to CBS News, Trump’s side has ten days to submit a motion to “justify” the bond. To do this, Knight Specialty must demonstrate that it has the financial ability to pay the deposit.
Attorney Bruce H. Lederman told CBS News that he noticed several “glaring errors” in the bond.
“In all the years I’ve been doing this, you always have to have a certificate from the Department of Treasury saying you’re authorized to issue a bond,” Lederman said.
On Wednesday, the New York Supreme Court’s office returned the bond to Trump’s legal team “for correction,” although no details were publicly released, CBS News reported. Knight Specialty refiled the release Thursday before James filed her bail exception.
Adam Pollock, a former deputy attorney general in New York, also questioned whether bail was sufficient.
“This bond is defective for several reasons, including that the company does not appear to be incorporated in New York and does not have sufficient capital to form this company,” Pollock told CBS News.
The company appears to be failing to meet the state requirement that prohibits companies from putting more than 10% of their capital at risk, CBS News reported.
However, Amit Shah, president of Knight Insurance, said the restriction did not apply in Knight’s case.
“Knight Specialty Insurance Company is not a New York resident insurer, and New York surplus insurance laws do not govern the solvency of non-New York surplus insurance insurers. So we don’t think we need a 10% surplus,” he told CBS News.
Shah said Knight has more than $1 billion in equity capital.
However, Lederman told the news outlet that the “fundamental case” is about the state AG demanding “strict compliance with the law.”
“The law requires that an insurance company posting a bond must be licensed in New York,” he said. “And there are serious questions as to whether this bond was properly posted.”
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2024-04-04 20:49:11
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