New York Attorney General Letitia James has been granted a hearing by state judge Arthur Engoron to challenge the $175 million bond former President Donald Trump posted in his civil fraud case.
In a new, brief order signed by Engoron, James was directed to present her case to the court on April 22 that the bond, posted by Knight Specialty Insurance Company, should not be accepted.
Trump was found liable for more than $450 million in damages and unpaid interest in this case, which centered on allegations the former president and his two adult sons systematically lied about the value and sometimes even the square footage of Trump Organization properties, in order to reduce their tax liabilities and interest obligations to banks. Trump has consistently denied his valuations were fraudulent and intends to appeal the decision.
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The case is one of multiple civil matters where Trump was slapped with millions in damages — another being the $83.3 million judgment won against him by writer E. Jean Carroll — but this is by far the largest.
However, complications arose as he struggled to find any entity willing to post the full $450 million bond, which would open the door for James to start seizing properties.
At the last minute, a state appellate court reduced his bond obligation to $175 million and gave him extra time to find a suretor.
Knight Specialty Insurance is owned by Don Hankey, a billionaire auto-lending tycoon with a history of issuing controversial subprime loans and who, ironically, was once investigated and sued by Trump's own administration for allegedly ripping off veterans.
Hankey has been inconsistent about exactly what the collateral is, which may be why James appears unsatisfied with the bond, and seeks for Engoron to intervene against it.
