New York Judge Arthur Engoron approved a new agreement Monday between Donald Trump’s lawyers and state Attorney General Letitia James to reinforce the $175 million bond he posted to appeal a $454 million judgment in a civil fraud trial for inflating the value of his real estate empire in statements to lenders.
James had asked for the bond to be voided, arguing that the insurance company providing the bond was not authorized to write bonds in New York. Concerns were raised about Trump having access to the cash account collateral, but Trump’s lawyer assured the judge that Trump couldn’t move money out of the account without approval.
During the hearing, Judge Engoron expressed skepticism about the security of the collateral, calling the situation a “house of cards.” However, an agreement was reached between the lawyers for Trump and James, with Schwab maintaining the account in cash and the insurance company gaining exclusive control.
Trump, speaking to reporters outside the courtroom, defended the legitimacy of the bond and criticized James for questioning it. He emphasized that he had put up $175 million in cash and had the means to do so.
The civil case revolves around Trump’s alleged inflation of property values to secure more favorable loans. Engoron had previously ordered Trump to repay ill-gotten gains from these actions. Without the bond, James could move to seize Trump’s accounts and property to claim the judgment.
The ongoing legal battles add to the mounting legal challenges faced by the former president, including a separate criminal case in New York related to alleged falsification of business records.