Former President Donald Trump and co-defendants have secured $175 million bail in a New York civil fraud case, according to court filings.
Trump secured the bond through Knight Specialty Insurance Company, part of the privately held Hankey Group, whose chairman told ABC News he considers himself a Donald Trump supporter.
Don Hankey told ABC News, “This is our job at Knight Insurance, and we are happy to serve the former president in this situation.” “I think it’s more of a business decision, but I also happen to be an advocate.”
Hankey said the company was initially involved in negotiations to assume $464 million in bonds in the original lawsuit, but last week a New York appellate court reduced the amount to $175 million, and the company stated that it has made renewed efforts to underwrite corporate bonds.
“This is a relatively low number, and Donald Trump posted all of his collateral in cash,” Hankey said.
Hankey could not recall whether Trump used any bonds as collateral for the final bond, but noted that his firm reviewed some of the former president's bonds as “Grade A bonds, investment grade securities.” did.
“We believe we have very good collateral,” Hankey said.
Hankey told ABC News that he had donated to the former president's campaign, but could not recall the amount.
Officials with the New York State Attorney General's Office declined to comment to ABC News.
“As promised, President Trump has posted bond,” attorney Alina Haba said in a statement Monday night. “He looks forward to vindicating his right to appeal and overturning this unjust sentence.”
Last week, a New York State Appellate Division panel granted the former president, his adult sons, and two former Trump Organization executives a 10-day stay on a $464 million judgment in a civil fraud case. , the bail amount was reduced. $175 million.
Trump's lawyers had argued that the former president lacked the funds to secure bail for the full sentence, having been rejected by more than 30 bond companies.
His lawyers argued that without the appeals court's intervention, Mr. Trump would have to sell the namesake property before completing his appeal of the wrongful conviction, causing irreparable harm.
After a three-month trial, Judge Arthur Engoron in February found President Trump and his co-defendants implicated in a decade-long business fraud in which they falsely inflated the former president's net worth in order to obtain more favorable loans and business deals. The defendant was found to have done so and was fined.
“The fraud discovered here jumps off the page and shocks the conscience,” Engoron wrote.
President Trump has denied any wrongdoing, and his lawyers appealed the decision in the case, arguing that the disgorgement amount was unconstitutional, disproportionate and defective. Defense attorneys argued that Judge Engoron incorrectly applied the statute of limitations to Trump's actions and that New York Attorney General Letitia James failed to prove that Trump's false statements were related to the former president's financiers. It is claimed that
“There is no evidence, nor was it found by the Supreme Court, that in the absence of the supposed 'misrepresentations', the relevant lenders and insurance companies would not have provided defendants with loans or insurance policies on the same terms.” the defense team said in a March filing.
If the appeal is denied, the former president and his co-defendants will be required to pay the full $464 million judgment.
If Trump does not have the cash to cover the entire judgment and his appeal is unsuccessful, James could seize Trump's assets to enforce the judgment.
“If we don't have the funds to repay the judgment, we will ask the court for a mechanism to enforce the judgment and we will ask the judge to seize the assets,” James said in a recent interview with ABC News. “We are preparing to ensure that judgments are paid to New Yorkers.”
In a defamation lawsuit brought against Trump by author E. Jean Carroll, Trump was paid $92 million through insurance company Chubb after a jury found him liable for defamation in January. Bail was secured. President Trump has denied any wrongdoing and has filed a notice of appeal in the case.
The former president used a brokerage account as collateral for the bond.
