The New York Attorney General's office filed a motion on Friday to invalidate a $175 million bond posted by former President Donald Trump in his civil business fraud case appeal.

New York AG Says Trump's Fraud Bond Should be Voided

According to the AG's office, Trump and other defendants failed to demonstrate sufficient collateral to support the bond in the Manhattan Supreme Court.

The filing highlights concerns regarding the surety, Knight Specialty Insurance Company, noting its small size and lack of authorization to conduct business in New York.

The AG's lawyers urged Judge Arthur Engoron to compel Trump and the defendants to furnish a replacement bond within seven days, according to a report by CNBC.

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Trump Faces $454 Million Damages Payment

The lawsuit, spearheaded by AG Letitia James, resulted in a substantial civil judgment against Trump, who was found liable for fraud by inflating real estate asset values to bolster his net worth.

Trump faces a mounting damages payment, currently standing at $454 million, alongside accruing interest, as he contests the verdict through an appeal.

Under New York law, Trump was obligated to secure a bond to guarantee the judgment while pursuing the appeal process. 

James granted Trump's attorneys a further 10 days to "justify" the bond earlier this month, as she sought reassurance that the firm would be able to fulfill its responsibility to back it up or pay if Trump defaults if his legal appeal is denied. 

The Attorney General's office stated that they failed to fulfill their burden of demonstrating that there is sufficient secure collateral behind the bond and that the court should not rely on Knight Insurance's financial statement as evidence.  

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