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By Kate Plummer
Senior US News Reporter
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Donald Trump lawyer Alina Habba has mocked Judge Arthur Engoron over his supposed understanding of Trump's bond in his New York civil fraud case.
Habba, who is also Trump's legal spokesperson, reacted despite the judge allowing the Republican's $175m bond, provided by California-based Knight Specialty Insurance Company (KSIC) in lieu of his fraud fine and appeal.
New York Attorney General Letitia James, prosecuting, had requested the bond be invalidated because the company was "not regulated by the state's insurance department" and because it "had never before written a surety bond in New York or in the prior two years in any other jurisdiction."
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The bond was required after Engoron in February found Trump, his sons Donald Jr. and Eric, and the Trump Organization liable for a scheme in which the value of Trump's net worth and assets were unlawfully inflated to obtain more favorable business deals. Trump was fined $454m but this amount, plus interest, was put on pause provided he secured the bond to appeal. Trump has denied all wrongdoing in the case.
Despite Engoron ruling in Trump's favor over the bond, Habba, speaking to Fox News' Sean Hannity, said the judge had suggested in court that the bond may not be secure because market changes could devalue it, if it was in cash.
"To tell you how hard it was for me to keep my face straight in that moment, Sean, you can't make it up," she said. "This case should've been in the commercial division. It had no business being in the civil division in front of a judge that today was trying to invalidate any bond and doesn't understand that cash is green."
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She added that the cash couldn't be traded and called Engoron's behavior "a disgrace."
Earlier, speaking to reporters in the hallway outside Trump's separate criminal hush-money trial, Habba, who has herself garnered criticism about her court performances when defending Trump, had made similar claims. She told the media Engoron "doesn't even understand basic principles of finance."
Donald Trump added: "He [Engoron] challenged the bonding company that maybe the bonding company was no good. Well, they're good. And they also have $175m dollars of collateral, my collateral."
Newsweek contacted Engoron's office by email to comment on this story.
But a source within James' office told Newsweek via email that Trump "has conceded to the Attorney General's demands" to resolve bond-related concerns. This puts the bond arguments in a different light, as James has seemingly managed to pin down Trump's money in more precise terms.
Other provisions of the deal agreed by Engoron include:
- The $175 million in collateral will stay as cash and will not be swapped for mutual funds or other financial instruments.
- The money cannot go anywhere else, like a lockbox.
- Trump and KSIC will provide a monthly account statement (reflecting $175 million in cash) to James' office and the court.
- The agreement between Trump and KSIC cannot and will not be amended without approval from the court.
- KSIC will submit to the jurisdiction of New York State Supreme Court in New York County, will waive its right to removal (to move a case to federal court or another jurisdiction), and will officially designate an agent of process in New York. That means that KSIC, though based in California, will officially designate someone who is able to accept legal service on their behalf in New York.
Trump attorney Christopher Kise previously told Newsweek via email: "Despite another flawed and desperate protest by the attorney general, President Trump is pleased the court determined the $175 million he posted in cash is worth $175 million, and the bond form in use in the New York court system for a century is in fact acceptable."
Neama Rahmani, a former federal prosecutor and the president of the West Coast Trial Lawyers law firm, told Newsweek via phone that the decision surprised him.
"Basically, [Trump's] putting up the cash and frankly it's even better than a bond," Rahmani said. "As long as he keeps the money in the account, there's nothing Letitia James can say and do. Her hands were really tied there."
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