New York state lawyers and an attorney for former President Donald Trump have settled their differences over a $175 million bond that Trump posted to block a large civil fraud judgment while he pursues appeals. The agreement was reached during a court hearing in Manhattan, cutting short what could have been a lengthy legal battle.
As part of the deal, lawyers for Trump and Knight Specialty Insurance Company agreed to keep the $175 million in a cash account that will accrue interest without any downside risk. The account has already grown by over $700,000. This bond prevents the state from seizing Trump's assets to satisfy the more than $454 million judgment he owes after losing a court case brought by the Democratic attorney general.
The attorney general had alleged that Trump, his company, and key executives had defrauded bankers and insurers by providing false information about his wealth. Trump denies these claims and is currently appealing the judgment.
Judge Arthur Engoron, who issued the significant judgment in February, presided over the hearing and engaged in tense exchanges with Trump's attorney, Christopher Kise. The judge raised concerns about the availability of the bond money for collection if the judgment is upheld, prompting Kise to defend the bond's validity.
After a brief recess, a settlement was proposed by Andrew Amer, an attorney for New York state. The terms of the agreement require Knight Specialty Insurance to maintain exclusive control of the $175 million in a cash account and submit to the jurisdiction of the New York state court. The insurance company is also prohibited from moving the funds into other financial instruments.
Following the agreement, Trump's attorney, Alina Habba, expressed satisfaction with the modified terms and emphasized that the financial arrangements would remain unchanged. Trump criticized Judge Engoron, accusing him of lacking understanding of the case and questioning the validity of the bonding company.
The resolution of this legal dispute marks a significant development in the ongoing legal challenges faced by former President Donald Trump.
