Trump hit with SURPRISE bad news in NY trial

The Legal Breakdown with BTC & Glenn Kirschner
20 Apr 202410:11

Summary

TLDRIn the midst of Donald Trump's first criminal trial in Manhattan, New York Attorney General Leticia James has formally opposed the $175 million bond that Trump attempted to post. The bond was issued by Nightfall Specialty Insurance Company, a small insurer not authorized to write bonds in New York and with a surplus far below the industry standard for such a large bond. Trump claimed to have over $175 million in cash in a Schwab brokerage account, but the nature of this claim raises questions. The Attorney General has requested that if the bond is rejected, Trump be given no more than seven days to post a legitimate bond. Failure to do so would lead to the seizure of his assets to satisfy the nearly half a billion-dollar judgment against him. The case continues with Judge En Goran expected to rule on the motion to disqualify the bond, potentially leading to further legal repercussions for Trump.

Takeaways

  • 📊 Donald Trump is facing a $175 million bond requirement in a New York fraud trial.
  • 🚫 New York Attorney General Leticia James has formally opposed Trump's $175 million bond.
  • 📄 A 26-page court filing by James details several reasons for opposing the bond.
  • 🔍 The bond was posted by Nightfall Specialty Insurance Company, which is not authorized to write bonds in New York.
  • 💵 Nightfall has a surplus of $138 million, which is less than the 10% industry standard of total assets for guaranteeing a bond.
  • 🤔 Trump claimed to have over $175 million in cash in a Schwab brokerage account, but this claim is questioned.
  • 🏦 If the value in Trump's account dips below $175 million, he pledged to 'true up' the balance with additional funds.
  • 🏴‍☠️ Nightfall retains 100% of its insurance risk in the Cayman Islands, known for lax regulations.
  • ❌ KSIC, Nightfall's holding company, has had its management found in violation of federal law on multiple occasions.
  • 💡 If the bond is rejected, James requests that Trump be given no more than seven days to post a legitimate bond.
  • 🏛️ A decision from Judge Maran on the bond's validity is expected after Trump's lawyers have a chance to respond to James's filing.

Q & A

  • What is the current situation regarding Donald Trump's $175 million bond in the New York fraud trial?

    -New York Attorney General Leticia James has formally opposed the $175 million bond that Donald Trump has tried to post, citing several reasons in a 26-page court filing. The bond was posted by Nightfall Specialty Insurance Company, which has a history of association with Trump and is not authorized to write bonds in New York.

  • What are the reasons for opposing the bond posted by Nightfall Specialty Insurance Company?

    -The reasons include the company not being authorized to write bonds in New York, having a surplus of only $138 million against an industry standard of 10% of total assets for bond guarantees, and being involved in 'shadow insurance' practices that have raised concerns with New York regulators.

  • What does the term 'shadow insurance' refer to in the context of Nightfall Specialty Insurance Company?

    -'Shadow insurance' refers to practices where insurance companies, like Nightfall, retain all their insurance risk in jurisdictions with lax regulations, such as the Cayman Islands, which allows them to operate with less oversight and potentially engage in unethical practices.

  • What are the implications if Judge Maran rejects the $175 million bond?

    -If the bond is rejected, Donald Trump would be given no more than seven additional days to post a legitimate bond. If he fails to do so, asset seizure could begin immediately to satisfy the nearly half a billion dollar money judgment entered against him.

  • Why did Donald Trump use Nightfall Specialty Insurance Company to post the bond instead of using his own cash?

    -It is suggested that Trump may not have the $175 million in liquid cash that he claims to have. Using a bond company allows him to avoid depositing such a large sum into an escrow account and incurring additional fees, although it raises questions about the veracity of his claimed cash reserves.

  • What is the role of the New York Court of Appeals in reducing the bond amount?

    -The New York Court of Appeals reduced the bond amount that Donald Trump had to post from nearly half a million dollars to $175 million without explanation or authority, which is seen as a favor to Trump.

  • Why is it suspicious that Donald Trump claimed to have 'cash' in quotes when discussing his financial assets?

    -The use of quotes around 'cash' suggests that the term may not be used in its literal sense, raising suspicions about the actual nature of the assets and whether they are truly liquid and available as claimed.

  • What is the industry standard for a company guaranteeing a bond relative to its total assets?

    -The industry standard is that a company should guarantee a bond for no more than 10% of their total assets.

  • What is the potential next step if Donald Trump is unable to post a legitimate bond within the given timeframe?

    -If Trump cannot post a legitimate bond, Attorney General James may begin the process of seizing his assets to satisfy the money judgment against him.

  • What is the significance of the bond company's management having a history of federal law violations?

    -The management's history of federal law violations disqualifies the company from acting as a surety under standard practices, casting doubt on the legitimacy and reliability of the bond they are offering.

  • How does the situation with the bond affect the public perception of Donald Trump's financial stability?

    -The inability to post a legitimate bond and the controversy surrounding the claimed cash assets can lead to increased skepticism about Trump's financial stability and transparency.

  • What are the viewers advised to do to follow the ongoing legal proceedings involving Donald Trump?

    -Viewers are advised to subscribe to both Glenn and Brian's channels for daily comprehensive coverage and updates on the trial and the bond situation.

Outlines

00:00

📉 Trump's $175 Million Bond Challenged

In this segment, the discussion revolves around the legal challenges faced by Donald Trump regarding a $175 million bond he is required to pay in a New York fraud trial. New York Attorney General Leticia James has formally opposed the bond that Trump secured, citing several reasons in a 26-page court filing. The bond, posted by Nightfall Specialty Insurance Company, a small insurer not authorized to write bonds in New York, is under scrutiny for its legitimacy. The company has a surplus of only $138 million, which is less than the 10% industry standard for bond guarantees based on total assets. Additionally, Trump's claim of having over $175 million in cash in a Schwab brokerage account, which he pledged as security for the bond, is questioned. The segment suggests that if the bond is rejected, asset seizure could begin immediately or Trump may be given a short window to secure another bond.

05:01

💼 Concerns Over Trump's Financial Statements

This paragraph delves into the financial discrepancies and potential misrepresentations made by Donald Trump in relation to his bond posting. It raises questions about why Trump would use a bond company and incur additional fees if he indeed has the liquid cash to cover the $175 million bond. The conversation suggests that Trump's use of a bond company implies a lack of the necessary liquid assets. The paragraph also highlights concerns about the practices of Nightfall Specialty Insurance Company, including its retention of 100% of insurance risk in the Cayman Islands, a practice known as 'shadow insurance,' and the company's management's history of violating federal law. The expectation is that Judge En Goran will decide on the motion to disqualify the bond, potentially leading to the seizure of Trump's properties if a legitimate bond is not posted within a short timeframe.

10:02

📺 Staying Updated on the Legal Breakdown

The final paragraph serves as a call to action for viewers to subscribe to the channels of both Glenn and Brian for ongoing coverage of Donald Trump's legal trials, including the New York fraud trial and the Manhattan criminal trial. The hosts, Brian Tyler Cohen and Glenn Kersner, invite viewers to follow their channels for daily legal updates and to stay informed about the case developments.

Mindmap

Keywords

💡Donald Trump

Donald Trump is a former President of the United States and a central figure in the video's narrative. He is involved in a legal dispute concerning a $175 million bond related to a fraud trial in New York. His actions and the implications of the bond on his financial standing are a significant part of the discussion.

💡$175 million bond

A bond is a type of financial guarantee for a specified amount, in this case, $175 million. It is a key element in the legal proceedings against Donald Trump, where it is required as part of the trial's financial obligations. The bond's legitimacy and the ability to post it are central to the video's content.

💡New York fraud trial

This refers to an ongoing legal trial taking place in Manhattan, New York, where Donald Trump is facing allegations of fraud. The trial's outcome could have significant financial and legal repercussions for Trump, which is why the bond and its validity are under scrutiny.

💡New York attorney general Leticia James

Leticia James is the New York State Attorney General who is opposing the $175 million bond that Donald Trump has tried to post. Her opposition and the reasons behind it are crucial to understanding the legal dynamics at play in the video.

💡Night Specialty Insurance Company

This is the insurance company that has posted the bond for Donald Trump. It is a small insurer with a limited surplus, and it is not authorized to write bonds in New York. The company's role and its relationship with Trump are critical to the discussion of why the bond might be unacceptable.

💡Asset seizure

Asset seizure refers to the legal process by which a court can take possession of a person's assets to satisfy a financial judgment or obligation. In the context of the video, if the bond is rejected and a new one cannot be posted, asset seizure could begin against Trump's properties.

💡Schwab brokerage account

This is a type of investment account that Donald Trump allegedly has, claiming to have over $175 million in cash within it. The existence and nature of this account are questioned in the video, as it is central to the legitimacy of the bond he is trying to post.

💡Shadow insurance

Shadow insurance is a term used to describe practices where insurance risk is retained in offshore jurisdictions with lax regulations. In the video, it is mentioned in relation to Night Specialty Insurance Company's practices, which are under scrutiny by New York regulators.

💡Federal law violations

This refers to past instances where the management of Night Specialty Insurance Company has been found to have operated in violation of federal law. These violations are part of the reasons why the company's bond is being questioned in the video.

💡Judge Maran

Judge Maran is the presiding judge in the case who will decide on the legitimacy of the bond. His decision will have a direct impact on whether the bond is accepted or rejected and the subsequent legal actions that may follow.

💡Court of Appeals

The Court of Appeals is a higher court that previously reduced the bond amount for Donald Trump. The actions of this court are relevant to the video as they set a precedent for the current discussions around the bond's validity.

Highlights

Donald Trump is facing a $175 million bond payment in the New York fraud trial.

New York attorney general Leticia James has formally opposed Trump's $175 million bond.

The bond was posted by Nightfall Specialty Insurance Company, which is not authorized to write bonds in New York.

Nightfall Specialty Insurance Company has a surplus of only $138 million, which is less than the industry standard for bond guarantee.

Trump claimed to have over $175 million in cash in a Schwab brokerage account, but used quotes around the word 'cash', implying potential insincerity.

If the value in Trump's Schwab account dips below $175 million, he pledged to 'true up' the balance with additional funds.

Nightfall Specialty Insurance Company retains 100% of its insurance risk in the Cayman Islands, a practice known as 'shadow insurance'.

Management of Nightfall has been found by federal authorities to have operated affiliated companies in violation of federal law.

If the bond is rejected, Trump may be given no more than seven additional days to post a legitimate bond.

The bond's rejection could lead to immediate asset seizure by the New York attorney general's office.

Trump's use of a bond company instead of his own cash suggests he may not have $175 million in liquid cash.

The New York Court of Appeals had previously reduced Trump's bond from nearly half a million dollars to $175 million.

Attorney General James is urging the court to reject the current bond due to several legal and regulatory concerns.

The decision on the bond's validity will likely come soon after Trump's lawyers file a response to James's filing.

If a legitimate bond is not provided, the attorney general will begin seizing Trump's properties to satisfy the nearly half a billion dollar judgment.

The legal breakdown will provide daily comprehensive coverage of the entire trial.

Viewers are encouraged to subscribe to both channels for daily legal updates on the case and the ongoing Manhattan criminal trial.

Transcripts

00:00

you're watching the legal breakdown so

00:01

Glenn we've got a major update on Donald

00:03

Trump's big $175 million bond that he

00:07

has to pay in the New York fraud trial

00:08

but first just a quick reminder that we

00:10

are in the midst of Trump's first

00:11

criminal trial in Manhattan and Glenn

00:13

and I will be doing daily comprehensive

00:15

coverage of the entire trial so if you

00:16

want to follow along for daily legal

00:18

updates please make sure to subscribe to

00:20

both of our channels okay Glenn things

00:22

have taken a decidedly worse turn for

00:24

Donald Trump as far as that $175 million

00:27

bond that he secured is concerned what's

00:29

the news here

00:30

talk about Donald Trump having a really

00:32

bad week New York attorney general

00:34

Leticia James has formally opposed the

00:38

$175 million Bond Donald Trump has tried

00:42

to post and she has several reasons in

00:46

what is a lengthy and dense 26-page

00:50

Court filing that just hit I've tried to

00:52

skim it quickly for our viewers and she

00:56

is asking that the court um that is

00:58

Judge Maran reject the bond now remember

01:02

Brian this is a dramatically reduced

01:05

Bond the New York Court of Appeals did

01:07

Donald Trump a favor though by reducing

01:10

a bond that he had to post of nearly

01:12

half a million dollars all the way down

01:14

to $1 175 million without explanation

01:18

without Authority and um so even Donald

01:22

Trump seems to be abusing that privilege

01:24

that gift that was bestowed upon him by

01:27

the uh the New York court of appeals but

01:29

today TI James has said not so fast we

01:32

oppose this Bond and there are several

01:35

reasons we're urging the court to reject

01:38

this Bond now what happens if the bond

01:40

is ultimately rejected can asset seizure

01:43

begin immediately by tis James or will

01:46

the judge give Trump another window

01:47

another 10day window perhaps to try and

01:49

secure another bond for $175 million

01:53

yeah great question and I think Tish

01:54

James tries to answer that question in

01:56

this new court filing she says to judge

01:59

en Goran your honor if you assuming you

02:02

agree with us and you reject this Bond

02:04

Trump just tried to post um we would ask

02:08

that he be given no more than seven

02:09

additional days to post a legitimate

02:12

Bond one that is acceptable to basically

02:15

the courts of New York and we can talk

02:17

about why she says this one is not

02:20

acceptable in New York in a minute but

02:23

um give him no more than seven days and

02:25

if he can't come up with a legitimate

02:27

Bond then let the seizures begin

02:30

okay and to your earlier Point uh can

02:33

you speak about why this Bond wasn't

02:34

acceptable what from night shy I believe

02:36

the company was called yeah I can let me

02:38

just hit some of the highlights that uh

02:40

AG James puts in this new court filing

02:43

first of all the bond was posted by

02:45

something called night specialty

02:48

insurance company ksic and the CEO is

02:52

somebody who has done business and is

02:54

something of an associate of Donald

02:56

Trump's from years past yeah only the

03:00

best people so um here is some of what

03:02

Tish James says she says first of all

03:05

night specialty insurance company is a

03:08

small insurer that is not authorized to

03:11

write Bonds in New York and thus is not

03:14

regulated by the New York State

03:16

insurance department and has never

03:19

before written a shity bond in New York

03:22

or has never written any shity bond in

03:25

the prior two years in any jurisdiction

03:28

reason one reason two they um apparently

03:33

night specialty insurance company has a

03:36

surplus of just $138 million that sounds

03:40

like a lot Until you realize that the

03:43

industry standard is a company should

03:46

guarantee a bond for no more than 10% of

03:50

their total assets that means even if

03:52

they were qualified to do business in

03:54

New York they shouldn't be putting up a

03:56

bond for anything more than about $14

03:59

million

04:00

of course they're uring

04:02

$175 million bond for Donald Trump but

04:05

wait there's more reasons to dislike

04:07

this Bond they say that Donald Trump

04:11

pledged to night specialty insurance

04:14

company that he has a bank account

04:17

specifically a Schwab brokerage account

04:20

that has you ready for this quote just

04:24

over

04:25

$175 million in cash why why did I just

04:30

put up the air quotes around cash

04:32

because Donald Trump said in pleadings

04:36

in papers that oh yeah I have a little

04:39

bit more than $175 million in cash and

04:43

he puts the word cash in quotes I'm not

04:46

sure why you have to put quotes around

04:47

the word cash if you actually have cash

04:51

I I have a I have an idea as to why you

04:53

might put the word cash in quotes a w a

04:57

wild guess yeah yeah maybe maybe maybe

04:59

has something to do with the fact that

05:00

he's bullshitting but that's that's just

05:02

me yeah bullshitting is a legal term but

05:04

um exactly but but so after he goes on

05:07

to say I have a I have more than he

05:10

doesn't even quantify I have well a

05:12

little more than $175 million in cash in

05:15

this Schwab account he then goes on to

05:18

tell the um night specialty insurance

05:21

company the one issuing the bond oh and

05:23

if the value in my Schwab account dips

05:26

below 175 million I promise to quote

05:31

true up the balance by depositing

05:34

additional funds in multiple permitted

05:37

forms including stocks nothing Shady

05:41

about any of those representations as

05:43

far as I'm concerned Brian yeah Glenn I

05:46

got to ask there's go ahead go ahead go

05:48

keep going keep going I'll ask my

05:49

question after yeah there's another

05:51

couple let me just round it out here so

05:54

ksic the shity company um basically

05:57

retains 100% of of his its Insurance

06:01

risk in the Cayman Islands where quote

06:04

this is Tish James language lack

06:07

regulations allow ksic to I'm going to

06:11

paraphrase here play games let me go

06:14

back to tish's uh Tish James language

06:17

quote a practice New York Regulators

06:19

have dubbed Shadow insurance and about

06:22

which they have sounded the alarm I

06:25

think that's reason number three to

06:27

dislike this Bond if you're scoring at

06:29

home and then finally Tish James rounds

06:31

it out with ksic is not qualified to act

06:35

as the shity under this standard because

06:38

its management get ready for it ksc's

06:42

management has been found by federal

06:44

authorities to have operated Affiliated

06:47

companies within ksc's holding company

06:50

structure in violation of federal law on

06:53

multiple occasions within the past

06:55

several years other than those four or

06:58

five disqualified fires I think this

07:01

bond is Rock Solid yeah that's right you

07:04

couldn't you couldn't write a like a a

07:06

more characteristic uh uh like

07:09

prototypical company that would actually

07:11

come in and save Donald Trump at the end

07:13

of this Glenn I got to ask if Donald

07:15

Trump has all this money all this liquid

07:17

cash or or quote unquote cash whatever

07:19

that means why would he seek the help of

07:22

a bond company who he then has to pay an

07:24

additional fee to I think it's like

07:26

somewhere between 3 and 5% I mean that

07:28

is a massive mive amount when you're

07:30

dealing with a sum of $175 million so if

07:32

he has the cash liquid right there why

07:35

wouldn't he just put his own cash up and

07:36

not have to pay extra money to some

07:38

random company it makes absolutely no

07:41

sense because if you're required to put

07:43

up $175 million in cash which you could

07:47

just deposit in the Court's escrow

07:50

account he did that in the first EG

07:53

Carol case he deposited $5.5 million in

07:56

cash um in the Court's escrow account

07:59

which let him appeal the first egene

08:02

Carol verdict um so if you had 175

08:05

million You' just give it to the court

08:07

and you don't incur the massive fees

08:10

that are required when you go to a shity

08:12

company when you go to a bondsman

08:14

because they're going to request a

08:16

premium in order to issue that Bond so

08:19

what does that tell me Brian it says

08:21

that he doesn't have $175 million in

08:25

cash yeah that must be what those air

08:27

quotes mean okay Glenn so what are next

08:29

steps here when are we going to get a

08:30

determination from the judge as to

08:32

whether uh Laticia James's motion to

08:35

disqualify knight uh specialty insurance

08:38

company is granted so I have a feeling

08:41

now that this new filing has been

08:43

received by the court judge en Goran

08:45

will likely give Donald Trump's lawyers

08:48

a a short amount of time to file its

08:51

response to Attorney General James

08:54

filing and then I suspect he'll resolve

08:57

it what we call on the papers which

08:59

means he'll probably read Trump's

09:02

response if any he'll make his decision

09:05

he'll announce his decision again if I

09:07

were betting man and making my $1 bet I

09:10

would I would bet the judge en Goran

09:11

will reject this Bond we'll give Donald

09:14

Trump seven maybe 10 days if he's

09:16

feeling generous to come up with a

09:18

legitimate bond by a legitimate bondsman

09:21

who is who is licensed and permitted to

09:23

do business in New York actually has the

09:26

assets to cover the bond doesn't send

09:29

all his business to the Cayman Islands

09:31

and has not violated federal law several

09:34

times over in recent years and if Trump

09:36

can come up with that kind of a bond and

09:38

I suspect he can't or he wouldn't have

09:40

come up come up with this one then

09:43

Attorney General James will begin

09:45

seizing his properties to satisfy the

09:48

nearly half a billion dollar money

09:50

judgment that was entered against him

09:52

well we obviously follow along with all

09:54

of this so for those watching right now

09:55

if you want to follow along with this

09:56

case as well as the ongoing Manhattan

09:58

Criminal trial please make sure to

10:00

subscribe the links to both of our

10:01

channels are right here on the screen so

10:03

please make sure to subscribe to Glenn's

10:04

Channel as well as mine you can keep up

10:06

with all of this I'm Brian tyer Cohen

10:08

and I'm Glenn kersner you're watching

10:10

the legal breakdown

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Tags associés
Trump FraudLegal BreakdownBond DisputeNew York TrialInsurance CompanyAsset SeizureCourt FilingRegulatory IssuesFinancial MisrepresentationCayman IslandsLegal Experts
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