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.