HomeInsuranceLetitia James Just 'Stunned' Donald Trump—Mary Trump

Letitia James Just ‘Stunned’ Donald Trump—Mary Trump

New York Attorney General Letitia James “stunned” former President Donald Trump after his $175 million bond was rejected in his civil fraud case, according to Mary Trump on Friday.

Last month, Judge Arthur Engoron ruled in favor of James’ lawsuit against Trump, his sons, Eric Trump and Donald Trump Jr., and The Trump Organization over allegations that the former president inflated the value of his properties and his own net worth by billions of dollars on financial statements provided to banks and insurers to make deals and secure loans. Engoron said the former president must pay $454 million, which includes $355 million in penalties plus nearly $100 million in interest.

Trump, the presumptive Republican 2024 presidential nominee, maintains his innocence and is fighting the ruling through appeal, branding the overall case and trial against him as a politically motivated witch hunt.

On Monday, Knight Specialty Insurance Company (KSIC) posted bond so none of Trump’s assets or bank accounts could be seized. KSIC is owned by the privately held Hankey Group. Don Hankey, chair of the company, heads both organizations.

“I’ve just posted a 175 Million Dollar Bond with the sadly failing and very troubled State of New York, based on a Corrupt Judge and Attorney General who used a Statute that was never used for this before, where no Jury was allowed, my financial statements were conservative and had a 100% perfect caution/non-reliance clause, there were no victims (except me!), there was no crime or damage, there was only success and HAPPY BANKS,” Trump wrote in a post on Monday on Truth Social, his social media platform.

However, documents as part of the $175 million bond were rejected by the court for not including a current financial statement. James later raised questions about the “sufficiency” of the bond in a legal filing.

A source within James’ office told Newsweek on Thursday that the court filing was due to Trump choosing to use an insurance company that is not admitted in New York and, therefore, ineligible to obtain a certificate of qualification from the Department of Financial Services (DFS).

James’ office has filed a notice of exception to the surety that requires either Trump and/or his legal team or the surety to demonstrate by motion that the surety is financially capable of performing under the bond.

Donald Trump
Former President Donald Trump speaks at a rally on Tuesday in Green Bay, Wisconsin. New York Attorney General Letitia James “stunned” Trump after his $175 million bond was rejected in his civil fraud case, according…

Scott Olson/Getty Images

“If you seek a bond from a company not admitted in New York, as Trump did with Knight, you cannot get a certificate of qualification from DFS,” the source said. “So, by law, you have to demonstrate to the court why the surety you obtained is capable of paying under the bond if the judgment creditor files a notice of exception to the surety, as we did here. At a minimum, that requires a showing that the surety is financially sound and that the face amount of the bond is sufficiently collateralized by identifiable assets.”

KSIC has refiled its paperwork as a result.

On Friday, Mary Trump, the outspoken critic and estranged niece of the former president, took to her Substack blog to discuss the rejected bond.

“Donald STUNNED: Letitia James REJECTS Donald’s $175M bond and demands answers about the insurance company that fronted the cash. Donald’s lawyers must face a new hearing with Judge Engoron. This has huge implications,” she wrote.

She added: “The recent developments have put the spotlight on the financial capabilities of the surety company chosen by Donald…Letitia James has been relentless in her pursuit of justice and is sending a clear message that no one can sidestep the law.”

The hearing is set for Monday, April 22.

Newsweek has reached out to Trump’s spokesperson via email for comment.

Meanwhile, James asked Engoron on Thursday to confirm that her office can contact Barbara Jones who he appointed to oversee the finances of The Trump Organization.

James filed a proposed order to Engoron in which her office would be allowed to communicate with Jones’ office without Trump’s lawyers being present.

Jones had already been overseeing The Trump Organization’s finances since November 2022 as part of a preliminary injunction in the civil fraud case. Lawyers from James’ office and Trump’s lawyers both suggested that Jones serve as the monitor.