(CNN) — Lawyers for former President Donald Trump said the $175 million bail posted to satisfy a judgment in a New York civil fraud case is financially sound, and they asked the judge to deny the prosecutor and award costs and fees.
In court papers filed Monday evening, Trump said the bonds guaranteed by Knight Specialty Insurance Company were backed by Trump's Charles Schwab account with more than $175 million in cash. Knight Specialty has control over the Schwab account and has the full support of the parent company to assume any risks, according to one of the Trump filings.
“DJT Trust has granted KSIC a security interest in a Schwab brokerage account, whereby DJT Trust is obligated to maintain at all times at least $175 million in cash or cash equivalent,” said a filing supporting the bond by Gregory Serio, a former insurance supervisor at New York State and a partner in Park Strategies, a government consulting firm.
“KSIC also has a standing agreement with its parent company, Knight Insurance Company, Ltd. (“KIC”), whereby KIC reinsures 100% of KSIC’s risks,” the statement read. “The $175 million bond in question is adequately secured.”
Earlier this month, the Attorney General's Office questioned the insurance company's financial capacity to be able to replace the bonds. Judge Arthur Engoron set a hearing for next week.
Trump's lawyers said there was no need for a hearing.
“The documentary evidence supporting the justification is overwhelming and obviates any need for a hearing to revoke the exception or justify KSIC as a safeguard,” Trump’s lawyers wrote in a lawsuit.
The Attorney General's Office questioned whether Knight Specialty was authorized to underwrite a surety bond in New York State and whether it lacked certification from the state regulator that it was qualified.
Trump's lawyers said the certificate is not the only evidence of financial well-being.
