Former President Donald Trump should be forced to find a new backer for the bond he needs to appeal the $464 million-plus civil fraud judgment against him, New York's attorney general argued in a court filing.
Attorney General Letitia James said in the 26-page document that the Knight Specialty Insurance Co. isn't licensed to do business in New York, has never underwritten a bond in the state, doesn't have $175 million in cash to secure Trump's bond, and hasn't secured adequate collateral for the bond.
Trump and the company "cannot demonstrate that KSIC's management meets the requirements of trustworthiness and competence under regulations governing insurance," state prosecutors wrote in the Friday filing.
James' office asked Judge Arthur Engoron to declare the KSIC bond to be "without effect," and to order that a new one be posted within seven days.
A hearing on the bond is set for Monday.
A Trump lawyer called James' move "baseless" and a "desperate effort to regain relevance" following an appeals court ruling last month that slashed the amount that the former president and presumptive 2024 Republican nominee must post to appeal Engoron's February verdict against him.
"Yet another witch hunt!" Kise told the Associated Press in an email.
KSIC didn't immediately return a request for comment, according to AP.
The company is controlled by Don Hankey, a Los Angeles billionaire described by Forbes as the "little-known king of subprime car loans."
In February, Engoron found Trump liable for repeatedly lying about the extent of his wealth to obtain bank loans to fund his New York real estate development business.
Engoron imposed $355 million in fines and interest that is accruing at the rate of nearly $112,000 a day, and he also limited the ability of the Trump Organization to do business in the state.
Trump maintains that none of his lenders were harmed and he has testified that he's worth several billion dollars.
Trump in now on trial in New York City for allegedly ordering the payment of $130,000 in hush money to adult film actor Stormy Daniels, real name Stephanie Clifford, shortly before the 2016 election in which he beat Hillary Clinton.
Trump has pleaded not guilty and denies Daniels' claim that they had an affair in 2006.
