The $175 million surety bond was missing vital information typically included in those filings, experts say.
When former in New York on Monday, it appeared that he had evaded a financial crisis. He had paused enforcement of the more than against him following a , while his appeal is pending.
But the surety bond was missing vital information typically included in those filings, experts say. These standard elements include documents related to power of attorney for the bond provider, Knight Specialty Insurance Company, a financial statement from the company and a certificate of solvency from the Department of Financial Services.
“There seem to be serious issues,” said Bruce H. Lederman, an attorney who has filed many bonds in New York, including for a real estate developer challenging a judgment. Lederman said he was struck by “glaring errors” in the bond.
“In all the years I’ve been doing this, you always have to have a certificate from the Department of Financial Services saying that you’re licensed to issue a surety bond,” he said, referring to the missing certificate of solvency under Section 1111 of New York Insurance Law.
Lederman noticed that Knight Specialty is not listed on New York’s Department of Financial Services website.
On Wednesday, the New York Supreme Court clerk’s office returned to Trump’s attorneys the bond filing “for correction.” There was no reason publicly specified in the request for correction.
Adam Pollock, a former assistant attorney general in New York, said, “This bond is deficient for a number of reasons.”
“Including that the company doesn’t appear to be licensed in New York and doesn’t appear to have enough capital to make this undertaking,” Pollock said.”
Knight Specialty is not licensed in New York to issue surety bonds, and Lederman noted the company’s absence from the Department of Financial Services database.
