Former President Donald Trump’s legal team has defended the $175 million bail posted to satisfy a judgment in a New York civil fraud case, stating that the bond secured by Knight Specialty Insurance Company is financially secure. In court papers filed Monday night, Trump’s lawyers argued that the bond is backed by Trump’s Charles Schwab account, which holds over $175 million in cash.
According to a filing by Gregory Serio, former New York state insurance superintendent, the DJT Trust has granted Knight Specialty Insurance Company a security interest in the Schwab brokerage account, ensuring that it maintains at least $175 million in cash or cash equivalents at all times. Additionally, Knight Specialty’s parent company, Knight Insurance Company, Ltd., reinsures 100% of Knight Specialty’s risk, further securing the bond.
Despite concerns raised by the attorney general’s office about the insurer’s financial stability, Trump’s lawyers have requested the judge to dismiss the attorney general’s objections and award them costs and fees. They argue that a hearing to set aside the exception or justify Knight Specialty as collateral is unnecessary, as the evidence supporting the bond’s adequacy is overwhelming.
The attorney general’s office had questioned Knight Specialty’s authorization to underwrite a surety bond in New York and raised concerns about its lack of a certificate from the state regulator confirming its qualifications. In response, Trump’s legal team stated that a certificate is not the sole indicator of financial well-being.
Judge Arthur Engoron has scheduled a hearing for next week to address the matter. The outcome of the hearing will determine whether the $175 million bail remains in place or if further action is needed.