Donald Trump, his bond lawyer and the New York Attorney General Letitia James have reached a new agreement regarding the $175 million bond controversy. Trump had originally posted cash as collateral for the bond with Knight Specialty Insurance, but James’ lawyers were concerned about Trump having access to the cash. After a hearing with Judge Arthur Engoron, a new agreement was made to give Knight exclusive access to the account where the cash is held, maintained by Charles Schwab financial services. Despite some doubts raised by Engoron about the security of the collateral, the new agreement was approved.
Trump has expressed frustration with James for questioning the legitimacy of the bond, stating that he had put up the $175 million in cash to secure it. He explained that due to the judgment preventing him from dealing with financial institutions in New York, he had to work with a California company for the bond. Trump reiterated that he had sufficient funds to provide the collateral, and therefore James should not be concerned about its validity. The ongoing appeal case against the $454 million judgment in the civil fraud trial revolves around accusations of Trump inflating the value of his real estate properties to lenders.
Judge Engoron’s ruling in February ordered Trump to repay ill-gotten gains from misleading lenders with exaggerated property values. This includes instances such as Trump overstating the square footage of his Trump Tower penthouse, inflating the value of the building at 40 Wall St., and overestimating the worth of his Mar-a-Lago resort. Trump has vehemently opposed Engoron’s decision, particularly contesting the valuation of Mar-a-Lago. If Trump fails to secure the bond, James could seize his accounts and assets to recover the judgment amount.
Additionally, while the civil case regarding real estate values continues, Trump is facing a separate criminal trial in New York for charges of falsifying business records related to hush money paid to a porn actress before the 2016 election. The trial began with opening arguments on Monday. Despite these legal challenges, Trump remains adamant about defending his financial practices and assets. The recent developments surrounding the bond agreement are a step towards resolving the ongoing legal disputes surrounding Trump’s real estate dealings and financial obligations.
