Attorney and Fox News legal analyst Gregg Jarrett on Friday called New York Attorney General Letitia James’ response about the rejection of Donald Trump’s civil fraud bond a “vindictive” move.
Trump posted a $175 million bond on Monday in order to begin pursuing an appeal of the civil fraud ruling against him. New York Judge Arthur Engoron previously found Trump, his adult sons Donald Jr. and Eric, and The Trump Organization liable for a scheme in which the value of Trump’s net worth and assets were unlawfully inflated in order to obtain more favorable business deals. Trump, the presumptive 2024 GOP presidential nominee, has maintained his innocence in the matter.
Trump was hit with a penalty that came to around $454 million after interest, and would have had to pay a bond slightly higher than that amount in order to appeal the ruling. An appeals court last week, however, ruled that he could instead pay a lower bond of $175 million.
The bond was then rejected by the court’s filing system shortly after it was posted due to missing paperwork, including a “current financial statement.” James, whose office led the fraud case against Trump, later raised questions about the “sufficiency” of the bond and noted that the surety backing it, Knight Specialty Insurance Company (KSIC), is not admitted in New York, meaning it’s ineligible to obtain a certificate of qualification from the Department of Financial Services (DFS).
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“If you seek a bond from a company not admitted in New York, as Trump did with Knight, you cannot get a certificate of qualification from DFS,” a source within James’ office told Newsweek in a prior statement. “So, by law, you have to demonstrate to the court why the surety you obtained is capable of paying under the bond if the judgment creditor files a notice of exception to the surety, as we did here. At a minimum, that requires a showing that the surety is financially sound and that the face amount of the bond is sufficiently collateralized by identifiable assets.”
KSIC has refiled its paperwork as a result.
During a Friday appearance on Fox News, Jarrett, an author who is also known for his pro-Trump stances, decried James comments about the rejection as “vindictive and abusive.”
“Well, this is another example of the vindictive and abusive behavior by Letitia James,” Jarrett told host Sean Hannity. “Trump paid all cash…for the $175 million bond, it’s fully collateralized, it’s a valid bon. James, who got spanked by the appellate court, is now trying an end-run to disqualify the surety company, claiming it’s not a standard carrier in New York. Well, I got news for her: that’s not required, because this is an excess carrier. As long as it has sufficient capital, and it does, over a billion in equity, then it’s approved to issue Trump’s bond.”
Newsweek reached out to James’s office via email on Saturday morning for comment.
Uncommon Knowledge
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.