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The New York attorney general’s ongoing effort to “get Trump” took aim at the former president’s underwriter with a claim that sought to void his $175 million bond.
While former President Donald Trump has the appeal of Judge Arthur Engoron’s ruling that found him and his organization liable for over $450 million, New York Attorney General Letitia James (D) has doggedly pursued seizing the billionaire’s assets to cover the fine.
Now, after the GOP leader had scored victories in getting the bond reduced and obtaining an underwriter to post it, California-based Knight Speciality Insurance Company (KSIC), James has claimed they are “not authorized” for business in the Empire State and they haven’t proven the “financial capacity” to cover the sum.
In a 26-page filing submitted Friday, James argued, “Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million.”
“The face amount of the bond exceeds this limitation by $161.2 million,” the filing continued. “Accordingly, the Bond is ‘ultra vires’ and the surety is not justified.”
452564 2022 People of the S… by Aaron Parnas
Further, the AG asserted, “KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years.”
Amid stated concerns about the underwriter’s authority to do business in New York, where state law prohibits smaller companies from exposing themselves to liabilities greater than 10 percent of their surplus, the state prosecutor also challenged KSIC’s lack of holding on the president’s collateral.
“KSIC does not now have an exclusive right to control the account and will not obtain such control unless and until it exercises a right to do so on two days’ notice,” stated the filing as Trump had previously said that he was using $175 million in cash as collateral for the bond.
James had previously endeavored to seize the president’s assets while the former commander-in-chief had argued against having to pay the nine-figure bond while pursuing an appeal.
Additional concerns were raised over KSIC’s alleged use of a “shadow” company in the Caribbean to allow the underwriter to “appear more financially stable than it actually is” as the filing argued, “That is because KSIC sends 100% of its retained insurance risk to affiliates in the Cayman Islands, where lax regulations allow KSIC to use this risk transfer to reduce the liabilities it carries on its books in a way that artificially bolsters its surplus, a practice New York regulators have dubbed ‘shadow insurance’ and about which they have sounded the alarm.”
Trump had not publicly responded to the AG’s latest use of lawfare at the time of this post and a hearing regarding James’ filing was expected to be held Monday in conjunction with the opening statements of the former president’s New York criminal trial, according to Fox News.
Native of Brooklyn, NY, Kevin Haggerty is a graduate of Hunter College where he studied Cultural Anthropology and Geography. An avid reader and truth seeker, he currently resides in Texas with his wife and their dog and, when he isn’t researching current events and their impacts, you’ll find him spending time with friends and family or working on his next novel.
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