Attorneys for Donald Trump and New York Attorney General Letitia James reached agreement on new provisions controlling the $175 million bond that Trump posted to secure the judgment in his fraud conviction while he pursues an appeal. Late Friday afternoon James filed a memorandum in State Supreme Court asking that the bond posted by Trump be voided and a new bond posted. Trump and his co-defendants face a judgment totaling $464 million and an appeals court reduced the amount of the bond that would have to be posted to secure the judgment to $175 million. James argued that the bond Trump put up could not be relied upon to secure even the reduced amount.
In a hearing Monday presided over by Judge Arthur Engoron, an agreement was reached under which Trump relinquishes control over a $175 million cash deposit he made in a Charles Schwab account that is used to back the bond posted by Knight Specialty Insurance Co. James has questioned whether Knight had the financial resources to pay the bond and whether the money in the Charles Schwab account would be there if it was needed to secure the judgment.
An attorney for Trump told Engoron that even if there was a problem with the bond the Trump Organization could still cover the $175 million and has plenty of real estate in New York City such as Trump Tower and 40 Wall St. that the court could quickly seize if it became necessary. Trump’s attorneys and attorneys from James’ office agreed to change a number of details in the paperwork to strengthen guarantees that New York state’s position is protected.
