New York Attorney General Letitia James has raised concerns about the validity of the $175 million bond issued in Donald Trump’s civil fraud case. James questioned whether the company behind the bond, Knight Specialty Insurance Company, has the financial capacity to support it. She also argued that the collateral provided by Trump should be fully controlled by the company, highlighting that KSIC is not authorized to operate in New York and has a relatively low policyholder surplus of $138 million.
James’ filing underscored the lack of regulation of KSIC and its limited experience in issuing surety bonds, raising doubts about its ability to fulfill its financial obligations. The Attorney General also criticized the control Trump’s team currently has over the collateral backing the bond, emphasizing the need for exclusive oversight by the insurance company. Despite James’ request for more information about the bond and collateral, neither Trump’s lawyers nor KSIC have responded to the concerns raised, further complicating the legal proceedings surrounding the case. The developments come amid Trump’s ongoing legal battles, including a criminal hush money case and a state appeals court ruling reducing the bond amount in the civil fraud case.