(Reuters) – Former President Donald Trump on Monday agreed to additional sanctions on $175 million of bonds in his New York civil fraud case, resolving state attorney general concerns that the funds were not safe.
The bond issued by Knight Specialty Insurance is intended to secure Mr Trump’s compliance with a $454.2 million judgment won by New York Attorney General Letitia James if he is not successful on appeal. Knight is owned by billionaire Trump supporter Don Hankey.
Justice Arthur Engoron imposed the fine after finding that Mr Trump fraudulently inflated his net worth and real estate assets to dupe banks and insurers into providing better terms.
Ms. James challenged the bonds this month, saying Mr. Trump still had access to the Charles Schwab account pledged as collateral to the insurer.
But at a hearing on Monday, where jurors heard opening arguments in Mr. Trump’s criminal hush money trial, lawyers for Mr. Trump and Knight agreed that the funds would remain as cash and not be traded for securities. .
They also agreed that Knight would have exclusive control over the account and would not withdraw funds, and would provide monthly statements to Mr James to ensure the cash was not going anywhere.
The settlement came after Justice Angoron raised questions about the security of the collateral.
“You keep using the word compromise. What if they break the agreement?” he asked Trump’s lawyer Christopher Kiss. “It all feels like a house of cards.”
