(USNewsMag.com) – New York state attorneys and one of former President Donald Trump’s lawyers reached an agreement earlier this week, settling their differences regarding the $175 million bond posted by the former president to stop the civil fraud judgment against him while pursuing an appeals process.
On Monday, April 22nd, the two sides faced a court hearing in Manhattan that would have lasted all day and featured witness testimony, but the agreement cut that hearing short. During a 20-minute recess, the Knight Specialty Insurance Company and Trump’s legal team agreed to hold the $175 million cash payment from the former president in an account that will accrue interest without any downside risk. That cash account has now exceeded $700,000.
Trump owes over $454 million after losing the civil fraud case brought against him by New York Attorney General Letitia James for allegedly defrauding insurers and banks by overvaluing properties and assets in reports. James has threatened to start seizing assets from Trump if the judgment is not paid, but the bond halts the state from doing so while the former president, who denies the allegations, appeals the decision handed down by Judge Arthur Engoron in February.
Engoron presided over the hearing on Monday and got into a bit of a skirmish with one of Trump’s lawyers. The judge challenged Christopher Kise about ways that the bond posted by the former president might be unavailable for collection if the final judgment stands in the end. Kise called the judge’s remarks a “wildly speculative” hypothetical scenario. Kise also criticized James, who he said would “find fault” no matter what Trump’s legal team does.
New York State Attorney Andrew Amer proposed terms of settlement that included parking the money in the insurance firm’s cash account. The Knight Insurance Group will have control over the money exclusively and will submit to New York state court jurisdiction not to move it.
Trump criticized Engoron for challenging his bonding company, which Trump said was a “good” company. He accused Engoron of misunderstanding the case.
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