Donald Trump’s lawyers cut a deal with state prosecutors Monday to secure his hefty $175 million civil fraud bond as he appeals the ruling in the case — even as his criminal trial got underway down the street.
State Attorney General Letitia James said Trump’s legal team agreed to secure the bond by keeping it in “a lockbox” while the onetime commander-in-chief fights to overturn a whopping $454 million judgment by Manhattan Supreme Court Justice Arthur Engoron last month.
James had raised concerns that Trump controlled the money secured by Knight Specialty Insurance Company — owned by billionaire Trump supporter Don Hankey — and said the former president could even have earned interest on the money while his appeals of Engoron’s ruling are pending.
Under the deal, which is expected to be formalized on Thursday, the bond will remain as cash and can’t be swapped out for mutual funds or “other financial instruments,” prosecutors said.
Knight Specialty will have exclusive control over the money and will file monthly statements.
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Speaking outside the courtroom Monday, Trump attorney Alina Habba blasted James for questioning the legitimacy of the bond and quipped to reporters that the money “isn’t green enough” for the attorney general.
“We wasted time,” Habba said. “The judge said he thought money market accounts go down under the amount — he doesn’t understand basic principles of finance.
“The attorney general and that judge realized quickly that they had no idea what they were talking about,” she said. “We came to an agreement that everything would be the same, we would modify terms, and that was it. This is where your taxpayer dollars are going, America. Right here: witch hunt after witch hunt.”
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