According to former federal prosecutor Eric Lisann, Knight Specialty Insurance won’t be allowed to post a $175 million bond for Donald Trump as he appeals a fraud judgment. This statement came in response to lawyer Dave Kingman’s assertion that the insurance company wouldn’t be able to secure the bond for Trump.
Newsweek explains:
Kingman wrote that, as a result, New York Attorney General Letitia James will be able to begin enforcement proceedings on Donald Trump’s properties.
A New York court has rejected Knight Specialty’s paperwork and said it wanted to see more information on its financial backing. The company filed new paperwork on April 4.
Newsweek sought email comment from Knight Specialty Insurance and Trump’s attorney on Monday.
Trump must post the $175 million bond to prevent James from beginning enforcement proceedings after a judge fined the former president $454 million in February for fraudulently inflating the value of his assets.
Writing on X, formerly Twitter, one-time federal prosecutor Lisann wrote that Knight Speciality might not be able to post the bond for Trump and will be liable for the full amount because it had given a guarantee to the court.
“Looks like there is a real possibility that this Don Hankey-owned Knight Specialty Insurance does not itself have liquidity, and did not get from Trump collateral, sufficient to provide legally cognizable assurance that it can pay $175 million on demand in the event of a judgment-affirming appeal,” he said.
On April 1, Trump submitted a $175 million bond to prevent the seizure of his assets by New York Attorney General Letitia James during his appeal of a civil fraud ruling. However, the court’s filing system rejected the bond shortly afterward due to missing paperwork, including a “current financial statement.” James later questioned the adequacy of the bond and highlighted that Knight Specialty Insurance Company (KSIC), is not authorized in New York, rendering it ineligible to obtain a certificate of qualification from the Department of Financial Services. KSIC has resubmitted its paperwork to restart the process.
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Last month, pollster Frank Luntz warned Democrats that if New York Attorney General Letitia James seizes Trump’s assets, it could significantly boost Trump’s chances in the 2024 presidential election.
“I want you to remember this moment,” he said during a panel discussion on CNN. “And don’t forget it. If the New York Attorney General starts to take his homes away, starts to seize his assets, it’s all going to be on camera. Pundits are going to sit there and scream about this. ‘This man cannot be elected.’ You’re going to create the greatest victimhood of 2024, and you’re going to elect Donald Trump.”
Luntz continued, “If they take his stuff, he’s going to say that this is proof that the federal government — and the establishment and the swamp in Washington and all the politicians across the country in the attorneys general and all of this — that this is a conspiracy to deny him the presidency. He’s going to go up in the polls just like he went up every single time they indicted him.”