Trump Scores Huge Court Victory

Trump Scores Huge Court Victory

Former President Donald Trump received favorable news on Monday when New York Judge Arthur Engoron accepted the $175 million bond in his civil fraud case, as reported by Axios.

Engoron's approval indicates that New York Attorney General Letitia James won't be able to seize Trump's assets or freeze his bank accounts, which could have happened if Trump had been required to post the previous bond set at nearly half a billion dollars.

James had raised concerns about the financial stability of the bond issuer, Knight Specialty Insurance Co., noting its lack of registration with the New York State Department of Financial Services.

Trump defended his choice of Knight by stating that he had to seek the firm in California due to restrictions preventing him from using a New York-based firm, according to USA Today.

Last Friday, James filed a court motion arguing that the defendants in the case and Knight had failed to justify the surety of the bond, urging Engoron to void the bond and require Trump to post a different bond within seven days.

State lawyers expressed worries that Trump might have access to a cash account with Charles Schwab financial services, which was used as collateral for the Knight bond, as reported by USA Today.

However, Trump's attorney, Christopher Kise, stated in court on Monday that the former president couldn't access the money without approval from Knight, and Schwab wouldn't allow access either, explaining, "We have to put the money somewhere."

Engoron raised concerns about the arrangement, questioning its stability and calling it "a house of cards."

Subsequently, lawyers for Trump and James negotiated a new agreement, which Engoron approved.

Under the new agreement, Knight would maintain "exclusive control" of the bond, with both the company and Trump providing monthly certifications of available cash, according to the state.

Additionally, Knight agreed to appoint an agent to handle transactions, and any changes in agreements between Trump and the company would require court approval, Axios reported.

The approved bond represents a significant reduction from the initial $454 million that Trump was ordered to pay, an amount he would have struggled to produce in cash.

James had anticipated the seizure of Trump's business assets due to this shortfall.

Trump faced accusations of fraud related to property overvaluation, a practice many consider victimless and common in real estate.

The state's legal actions against the former president have caused concern among other businesses operating in New York.

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