Lawyers for former President Donald Trump said his $175 million bond posted to satisfy the judgement in the New York civil fraud case is financially sound, and they asked the judge to set aside the attorney general’s challenge to the bond and award him costs and fees.
In court filings Monday night, Trump said the bond secured by Knight Specialty Insurance Company is backed by Trump’s Charles Schwab account with more than $175 million in cash. Knight Specialty can take control of the Schwab account and is fully backed by its parent company to assume any risk, one of Trump’s filings said.
“The DJT Trust granted KSIC a security interest in a Schwab brokerage account, in which the DJT Trust is obligated to maintain no less than $175 million in cash or cash equivalents at all times,” according to an affirmation filed in support of the bond by Gregory Serio, a former superintendent of insurance for New York state and partner of Park Strategies, a government consulting firm.
“KSIC also has a standing agreement with its parent company, Knight Insurance Company, Ltd. (‘KIC’), by which KIC reinsures 100% of KSIC’s risk,” the affirmation said. “The $175 million bond at issue is adequately secured.”
Earlier this month, the attorney general’s office challenged the financial ability of the underwriter to be able to stand in for the bond. Judge Arthur Engoron scheduled a hearing for next week.
Trump’s lawyers argued no hearing is necessary.
“The documentary evidence in support of justification is overwhelming and obviates any need for a hearing to set aside the exception or to justify KSIC as surety,” Trump’s attorneys wrote in a court filing.
The attorney general’s office questioned whether Knight Specialty was authorized to underwrite a surety bond in New York state and whether it lacked a certificate from the state regulator saying it is qualified.
Trump’s attorneys said a certificate is not the only evidence of financial wellbeing.
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