Trump hit with SURPRISE bad news in NY trial
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
📉 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.
💼 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.
📺 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
💡$175 million bond
💡New York fraud trial
💡New York attorney general Leticia James
💡Night Specialty Insurance Company
💡Asset seizure
💡Schwab brokerage account
💡Shadow insurance
💡Federal law violations
💡Judge Maran
💡Court of Appeals
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
you're watching the legal breakdown so
Glenn we've got a major update on Donald
Trump's big $175 million bond that he
has to pay in the New York fraud trial
but first just a quick reminder that we
are in the midst of Trump's first
criminal trial in Manhattan and Glenn
and I will be doing daily comprehensive
coverage of the entire trial so if you
want to follow along for daily legal
updates please make sure to subscribe to
both of our channels okay Glenn things
have taken a decidedly worse turn for
Donald Trump as far as that $175 million
bond that he secured is concerned what's
the news here
talk about Donald Trump having a really
bad week New York attorney general
Leticia James has formally opposed the
$175 million Bond Donald Trump has tried
to post and she has several reasons in
what is a lengthy and dense 26-page
Court filing that just hit I've tried to
skim it quickly for our viewers and she
is asking that the court um that is
Judge Maran reject the bond now remember
Brian this is a dramatically reduced
Bond the New York Court of Appeals did
Donald Trump a favor though by reducing
a bond that he had to post of nearly
half a million dollars all the way down
to $1 175 million without explanation
without Authority and um so even Donald
Trump seems to be abusing that privilege
that gift that was bestowed upon him by
the uh the New York court of appeals but
today TI James has said not so fast we
oppose this Bond and there are several
reasons we're urging the court to reject
this Bond now what happens if the bond
is ultimately rejected can asset seizure
begin immediately by tis James or will
the judge give Trump another window
another 10day window perhaps to try and
secure another bond for $175 million
yeah great question and I think Tish
James tries to answer that question in
this new court filing she says to judge
en Goran your honor if you assuming you
agree with us and you reject this Bond
Trump just tried to post um we would ask
that he be given no more than seven
additional days to post a legitimate
Bond one that is acceptable to basically
the courts of New York and we can talk
about why she says this one is not
acceptable in New York in a minute but
um give him no more than seven days and
if he can't come up with a legitimate
Bond then let the seizures begin
okay and to your earlier Point uh can
you speak about why this Bond wasn't
acceptable what from night shy I believe
the company was called yeah I can let me
just hit some of the highlights that uh
AG James puts in this new court filing
first of all the bond was posted by
something called night specialty
insurance company ksic and the CEO is
somebody who has done business and is
something of an associate of Donald
Trump's from years past yeah only the
best people so um here is some of what
Tish James says she says first of all
night specialty insurance company is a
small insurer that is not authorized to
write Bonds in New York and thus is not
regulated by the New York State
insurance department and has never
before written a shity bond in New York
or has never written any shity bond in
the prior two years in any jurisdiction
reason one reason two they um apparently
night specialty insurance company has a
surplus of just $138 million that sounds
like a lot Until you realize that the
industry standard is a company should
guarantee a bond for no more than 10% of
their total assets that means even if
they were qualified to do business in
New York they shouldn't be putting up a
bond for anything more than about $14
million
of course they're uring
$175 million bond for Donald Trump but
wait there's more reasons to dislike
this Bond they say that Donald Trump
pledged to night specialty insurance
company that he has a bank account
specifically a Schwab brokerage account
that has you ready for this quote just
over
$175 million in cash why why did I just
put up the air quotes around cash
because Donald Trump said in pleadings
in papers that oh yeah I have a little
bit more than $175 million in cash and
he puts the word cash in quotes I'm not
sure why you have to put quotes around
the word cash if you actually have cash
I I have a I have an idea as to why you
might put the word cash in quotes a w a
wild guess yeah yeah maybe maybe maybe
has something to do with the fact that
he's bullshitting but that's that's just
me yeah bullshitting is a legal term but
um exactly but but so after he goes on
to say I have a I have more than he
doesn't even quantify I have well a
little more than $175 million in cash in
this Schwab account he then goes on to
tell the um night specialty insurance
company the one issuing the bond oh and
if the value in my Schwab account dips
below 175 million I promise to quote
true up the balance by depositing
additional funds in multiple permitted
forms including stocks nothing Shady
about any of those representations as
far as I'm concerned Brian yeah Glenn I
got to ask there's go ahead go ahead go
keep going keep going I'll ask my
question after yeah there's another
couple let me just round it out here so
ksic the shity company um basically
retains 100% of of his its Insurance
risk in the Cayman Islands where quote
this is Tish James language lack
regulations allow ksic to I'm going to
paraphrase here play games let me go
back to tish's uh Tish James language
quote a practice New York Regulators
have dubbed Shadow insurance and about
which they have sounded the alarm I
think that's reason number three to
dislike this Bond if you're scoring at
home and then finally Tish James rounds
it out with ksic is not qualified to act
as the shity under this standard because
its management get ready for it ksc's
management has been found by federal
authorities to have operated Affiliated
companies within ksc's holding company
structure in violation of federal law on
multiple occasions within the past
several years other than those four or
five disqualified fires I think this
bond is Rock Solid yeah that's right you
couldn't you couldn't write a like a a
more characteristic uh uh like
prototypical company that would actually
come in and save Donald Trump at the end
of this Glenn I got to ask if Donald
Trump has all this money all this liquid
cash or or quote unquote cash whatever
that means why would he seek the help of
a bond company who he then has to pay an
additional fee to I think it's like
somewhere between 3 and 5% I mean that
is a massive mive amount when you're
dealing with a sum of $175 million so if
he has the cash liquid right there why
wouldn't he just put his own cash up and
not have to pay extra money to some
random company it makes absolutely no
sense because if you're required to put
up $175 million in cash which you could
just deposit in the Court's escrow
account he did that in the first EG
Carol case he deposited $5.5 million in
cash um in the Court's escrow account
which let him appeal the first egene
Carol verdict um so if you had 175
million You' just give it to the court
and you don't incur the massive fees
that are required when you go to a shity
company when you go to a bondsman
because they're going to request a
premium in order to issue that Bond so
what does that tell me Brian it says
that he doesn't have $175 million in
cash yeah that must be what those air
quotes mean okay Glenn so what are next
steps here when are we going to get a
determination from the judge as to
whether uh Laticia James's motion to
disqualify knight uh specialty insurance
company is granted so I have a feeling
now that this new filing has been
received by the court judge en Goran
will likely give Donald Trump's lawyers
a a short amount of time to file its
response to Attorney General James
filing and then I suspect he'll resolve
it what we call on the papers which
means he'll probably read Trump's
response if any he'll make his decision
he'll announce his decision again if I
were betting man and making my $1 bet I
would I would bet the judge en Goran
will reject this Bond we'll give Donald
Trump seven maybe 10 days if he's
feeling generous to come up with a
legitimate bond by a legitimate bondsman
who is who is licensed and permitted to
do business in New York actually has the
assets to cover the bond doesn't send
all his business to the Cayman Islands
and has not violated federal law several
times over in recent years and if Trump
can come up with that kind of a bond and
I suspect he can't or he wouldn't have
come up come up with this one then
Attorney General James will begin
seizing his properties to satisfy the
nearly half a billion dollar money
judgment that was entered against him
well we obviously follow along with all
of this so for those watching right now
if you want to follow along with this
case as well as the ongoing Manhattan
Criminal trial please make sure to
subscribe the links to both of our
channels are right here on the screen so
please make sure to subscribe to Glenn's
Channel as well as mine you can keep up
with all of this I'm Brian tyer Cohen
and I'm Glenn kersner you're watching
the legal breakdown
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