Trump and Letitia James come to an agreement over changes to his $175 million fraud bond

New York, New York - Former President Donald Trump and New York Attorney General Letitia James recently came to an agreement about how to proceed with his payment of the $175 million bond in his fraud trial.

On Monday, New York Attorney General Letitia James (l.) and the judge overseeing Donald Trump's (r.) New York fraud trial came to a decision regarding the recent $175 million bond he posted to appeal the case.
On Monday, New York Attorney General Letitia James (l.) and the judge overseeing Donald Trump's (r.) New York fraud trial came to a decision regarding the recent $175 million bond he posted to appeal the case.  © Collage: POOL / GETTY IMAGES NORTH AMERICA / Getty Images via AFP

According to The New York Times, prosecutors with the AG's office and representatives for the former president met for a hearing on Monday for Judge Arthur Engoron – who is overseeing the fraud trial – to hear arguments regarding the bond Trump posted earlier this month.

Judge Engoron ruled that Knight Specialty Insurance Company, the company that secured the bond, will keep exclusive control over the account.

The funds will remain in the form of cash, however, and cannot be exchanged for less secure assets.

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Last year, Trump was found guilty of using fraudulent asset valuations for years in order "to obtain hundreds of millions of dollars in loans and insurance coverage."

Last month, the judge ordered Trump to pay a bond of $454 million in order to appeal the judgment, but an appeals court dramatically reduced the amount to $175 million.

The AG's office challenged the bond, arguing their concerns about the "sufficiency" of Knight Specialty to pay the charge. The defense responded with a filing, insisting the bond was indeed financially sound as it is "collateralized" by an account that contains more than the $175 million needed.

James had threatened to seize Trump's assets if he was unable to pay the judgment, but their recent compromise will allow Trump to continue his fight to appeal.

Donald Trump and attorney Alina Habba respond Judge Engoron's bond ruling

Monday's hearing was largely overshadowed by Trump's attendance across town at day five of his hush money trial, which saw the beginning of opening statements.

As Trump left the courthouse, he shared his reaction to Judge Engoron's decision on the bond, where he accused James of trying to "embarrass" Knight Specialty – but noted she "agreed" to the judge's decision "if you can believe that."

Trump's attorney Alina Habba, who was present at the hearing, told reporters that James failed in her attempt to argue that "our cash somehow isn't green enough" and called the entire trial "a disgrace to the American judicial system."

"This is where your tax dollars are going to America," Habba added. "Right here – witch hunt after witch hunt."

Cover photo: Collage: POOL / GETTY IMAGES NORTH AMERICA / Getty Images via AFP

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