Donald Trump’s legal travails are worsening with the latest development in the New York civil fraud case turning out to be a nightmare for him, said his niece Mary Trump on Friday.
What Happened: Mary Trump revealed in a new Substack post that New York Attorney General Letitia James is investigating a $175 billion bond provided by Donald Trump. The bond issuer, Knight Specialty Insurance Company (KSIC), reportedly lacked proper certification to operate in the state.
In other words, Donald could be left responsible for the entire amount of the original judgment (plus interest) if his bond is rejected, she said.
Mary Trump, a psychologist and podcaster, noted that New York State Supreme Court Judge Arthur Engoron, who is presiding over the civil fraud case, returned the documents submitted by KSIC, citing the non-inclusion of a “current financial statement, power of attorney or to list an attorney-in-fact.”
The firm then resubmitted the documents, giving James exactly what she needs to look more closely into the insurance company’s finances, she added.
The surety, which in this case is KSIC, must now be shown to be "financially capable of performing under the bond,” or, in other words, the surety company should prove that it is financially sound and the total amount of the bond “is sufficiently collateralized by identifiable assets,” Mary Trump said.
Why It’s Important: Judge Engoron agreed to James’ request and “has scheduled a hearing on the matter for April 22,” Mary Trump noted. She also noted that James requested this week that Engoron permit Barbara Jones, the independent monitor overseeing the Trump Organization's finances, to investigate whether the defense “withheld relevant and responsive information” during the trial.
“Letitia James is doing a perfect job holding him [Donald Trump] accountable every step of the way,” Mary Trump said.
James, the psychologist said, has been “relentless in her pursuit of justice and is sending a clear message that no one can sidestep the law.”
The developments assume importance as Donald Trump is facing a criminal case in New York over falsifying accounts to pay adult movie star Stormy Daniels to cover up his alleged sexual encounter with her before the 2016 election. The start of the trial date is set for April 15. The ex-president’s filing to delay the start on the grounds of presidential immunity was rejected by Acting New York State Supreme Court Judge Juan Merchan.
Despite the legal overhangs, Donald Trump is slightly ahead of President Joe Biden in a hypothetical matchup for the November election, going by a majority of nationwide polls.
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