Trump's Fraud Trial Bond Has Raised Major Alarms With Prosecutors

The company that is backing Donald Trump's fraud trial bond has come under fire from prosecutors, and Judge Arthur Engoron has even scheduled a hearing with the company to determine if they can even afford to post it. And now new reports have found some serious discrepancies with the actual contract that the company produced for the bond that could result in it being completely thrown out. Ring of Fire's Farron Cousins explains what's happening.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

More and more problems continue to pile up for the, uh, uh, knight. What, what, what is it? Uh, Knight Specialty Insurance Company is the official name of it, but that is the bond company that, of course paid Donald Trump's $175 million bond for the fraud trial. And because there are so many questions about whether or not this company even has the money to pay the bond, if Trump loses, judge Arthur Geron has of course scheduled a hearing for April 22nd with the bond company because they didn't give him financial information. And for the record, all of that happened at the end of last week. And in the time since the Daily Beast sent their reporters out there, and they uncovered a little bit more about this company that raises serious red flags to the prosecutors and the judge about this company's solvency. For example, this Knight Insurance Company, they're a California company, not a New York company, but according to the rules of the court in the state of New York for an insurance company to put up a bond, you actually cannot put up more than 10% of your solvency.

Meaning if you have a billion dollars in the bank, the most you can put up in a bond would be a hundred million dollars, 10%. However, according to the financial records, it looks like this company only has 138 million in surplus, which means that would be 127% of the bond payment or the bond payment would be 127% of that total. Excuse me. So according to their own financial records, they don't have the money. But Knight Insurance, they swear they've got the, they, they say they've got a billion dollars, we've got a billion dollars sitting in the bank there. And plus, of course, because we're not a New York company, you know, we, we probably don't have to adhere to the 10% rule. Um, that's gonna be interesting. I can't wait to see what happens when you go and tell the judge that, Hey, we're not from around here, so we don't have to abide by the rules.

Um, it's gonna be a fun argument, but I don't think it's going to be an effective argument. And those are just two, by the way, the solvency of the company. And then of course, the 10% rule. Those are just two of the massive issues that have arisen in the last four days with this company. Another one, and this is probably going to be a major one that actually could get the bond thrown out altogether, is that in the contract of the bond company, it clearly states that if Trump loses upon appeal, we're not gonna pay. Trump has to pay, which negates the whole point of having an insurance company

Posts the bond, right? I mean, the whole point of having the company do it is to say, if he loses, we have to pay. But then of course he has to pay us. They're just saying, look, we're just here to sign paperwork. Okay? If he loses, he's gonna pay you. We're not gonna give you anything. You can't do that. Okay, let's, let's make that abundantly clear. You can't do that. And here's the thing, if you think, well, I mean the judge read it, the judge approved it. Think again, folks, they didn't go through this paperwork, just like with the Eugene Carroll trial. Remember Donald Trump's bond company that put up the money, uh, added a clause into the contract that said, Hey, oh, by the way, he also has 60 days to pay if he loses the appeal.