After numerous bond surety companies' doors were slammed in the Malignant Loser's face when he came looking for a $464 million bond in his business fraud case, one intrepid surety company stepped forward: Knight Specialty Insurance Company, principally a subprime car loan company, and put up the court-approved reduced $175 million bond on April 1. However, the California-based insurance company, whose CEO is Trump-supporter Don Hankey, is under scrutiny by the New York Attorney General's office to prove that there is sufficient collateral for the bond. From CNN:
"The attorney general’s office, led by Democrat Letitia James, on Thursday took a step to challenge the soundness of the deal and filed a 'notice of exception to the sufficiency of the surety' to seek additional information from Trump or the underwriter about the bond because the insurer is not regulated by New York state.
Judge Arthur Engoron set a hearing for April 22.
On Monday, California-based Knight Specialty Insurance Company agreed to underwrite the bond. Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, told CNN on Tuesday that Trump provided $175 million in cash as collateral for the bond.
Lawyers familiar with bonds say it’s fair for the attorney general’s office to want to understand the collateral used to support the bond. Trump can ask the judge to sign-off on Knight or pair Knight with another company that is authorized in New York.
“If they seek court approval of Knight Specialty, I believe that the attorney general will want proof that the company is actually holding the $175 million in cash collateral so the bond can be immediately paid if the judgment is affirmed without needing to wait to try to liquidate pledged assets,” said Bruce Lederman, an attorney with DL Partners, who has experience obtaining bonds.
Knight Specialty and its parent company are not authorized to issue surety bonds in New York state and therefore can’t obtain a certificate from the New York Department of Financial Services, which is usually part of a bond package. The attorney general’s office asked for additional information within 10 days, or it said the bond will not be in effect." (our emphasis)
It's imperative to double check the true amount of collateral backing the bond, knowing that MAGA cultists are so devoted to their cult leader that fraud isn't beneath them. In this case, it's AG James protecting the interests of the people of New York, who have been defrauded for years by the Malignant Loser's business operations and who have to be compensated.
