4 weeks ago
New York Attorney General Letitia James is pushing nan judge in erstwhile President Donald Trump's civilian fraud lawsuit to void nan $175 cardinal enslaved that Trump antecedently posted to entreaty his New York civilian lawsuit.
In her 26-page filing obtained by Fox News Digital, James questions whether nan security institution has capable costs to backmost it up.
Trump’s enslaved was posted by California-based Knight Specialty Insurance Company (KSIC), but James based on that nan insurer was "not authorized" to constitute business successful New York, stating it is simply a mini insurer that is not authorized to constitute business successful New York and is not regulated by nan state’s security department, had ne'er earlier written a surety enslaved successful New York aliases successful nan anterior 2 years successful immoderate different jurisdiction, and has a full policyholder surplus of conscionable $138 million.
The institution has a full policyholder surplus of conscionable $138 million, nan filing states. According to New York authorities law, smaller businesses for illustration KSIC are not permitted to expose themselves to liabilities, for illustration a bond, aliases immoderate imaginable nonaccomplishment greater than 10 percent of their surplus.
NEW YORK AG TAKES VICTORY LAP AFTER TRUMP FRAUD RULING: 'JUSTICE HAS BEEN SERVED'
New York Attorney General said she is "prepared" to inquire nan judge to prehend erstwhile President Donald Trump's assets if he cannot salary nan $354 cardinal judgement handed down successful his civilian fraud case. (ABC News/Screenshot/Brendan McDermid-Pool/Getty Images)
"Based connected KSIC’s policyholder surplus successful its astir caller yearly financial connection of $138,441,671, nan limitation of nonaccomplishment connected immoderate 1 consequence that KSIC is permitted to constitute is $13.8 million," nan lawyers wrote. "The look magnitude of nan enslaved exceeds this limitation by $161.2 million."
James besides wrote successful nan filing that "KSIC is not qualified to enactment arsenic nan surety nether this modular because its guidance has been recovered by national authorities to person operated affiliated companies wrong KSIC’s holding institution building successful usurpation of national rule connected aggregate occasions wrong nan past respective years."
"KSIC does not now person an exclusive correct to power nan relationship and will not get specified power unless and until it exercises a correct to do truthful connected 2 days' notice," nan filing read.
James besides wrote that nan Court should not trust connected KSIC’s financial summary attached to nan enslaved arsenic grounds that KSIC has capable capacity to warrant penning a $175 cardinal bond.
"That is because KSIC sends 100% of its retained security consequence to affiliates successful nan Cayman Islands, wherever lax regulations let KSIC to usage this consequence transportation to trim nan liabilities it carries connected its books successful a measurement that artificially bolsters its surplus, a believe New York regulators person dubbed "shadow insurance" and astir which they person sounded nan alarm," nan filing read.
For these reasons, James writes that nan Court should contradict nan Motion and require Defendants to station a replacement undertaking wrong 7 days of nan Court’s ruling.
NY AG LETITIA JAMES BOOED AT FDNY CEREMONY WITH CHANTS OF 'TRUMP! TRUMP! TRUMP!'
Democrat New York Attorney General Letitia James and erstwhile President Donald Trump. (Getty Images)
In September, Judge Arthur Engoron ruled that Trump and nan Trump Organization had committed fraud while building a existent property empire by deceiving banks, insurers and others by overvaluing his assets and exaggerating his nett worthy connected paperwork utilized successful making deals and securing financing.
The judge besides prohibited Donald Trump Jr. and Eric Trump from serving arsenic an serviceman aliases head of immoderate New York corp aliases ineligible entity successful New York for 2 years.
The erstwhile president has many times slammed nan lawsuit against him and denied immoderate wrongdoing, calling it a "witch hunt."
James brought nan suit against Trump, accusing Trump and nan Trump Organization of fraudulent business practices. James claimed Donald Jr., Ivanka, and Eric, arsenic good arsenic his associates and businesses, committed "numerous acts of fraud and misrepresentation" connected their financial statements.
Trump has pleaded not blameworthy connected each counts.
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The judge is expected to clasp a hearing Monday to talk nan issues raised by nan lawyer general’s office. The proceeding is group to tally successful conjunction pinch opening statements successful Trump’s New York criminal trial.
Fox News' Brooke Singman and Timothy Nerozzi contributed to this report.
