How He Secured More Than $250 Million In Fraud And Carroll Cases

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Former President Donald Trump posted a $175 million bond Monday in the civil fraud case against him and his company, keeping his assets safe as he appeals the judgment—one of two high-dollar bonds the ex-president has posted recently, as insurance companies and the powerful Trump allies behind them have been willing to vouch for his ability to pay his debts.

Former President Donald Trump speaks during a news conference on March 28 in Massapequa Park, NY

Key Facts

Civil Fraud Case ($175 million): Trump’s bond only partially covers the full amount he and his co-defendants have been ordered to pay—more than $464 million—after an appeals court lowered the amount that has to be paid immediately, and it was underwritten by Knight Specialty Insurance Company.

That company is chaired by billionaire Don Hankey, who made his fortune in the auto services industry and was also the largest individual owner of Axos Financial, which gave Trump financial support in 2022 by refinancing his mortgages on Trump Tower and Trump National Doral in Miami.

Hankey told Forbes Monday that Trump used a combination of cash and investment-grade bonds to secure the bond, explaining Knight actually initiated the deal and reached out to Trump—whom Hankey said he had never met, although he has supported Trump’s past political campaigns.

E. Jean Carroll Case ($91.6 million): Trump posted bond in writer Carroll’s defamation case in March, after a jury ordered him to pay $83.3 million for defaming her—the bond also covers interest—which was underwritten by Federal Insurance Company, a subsidiary of Chubb.

Chubb’s CEO Evan Greenberg previously served on Trump’s trade advisory committee when he was in the White House, and Chubb has had mixed dealings with the Trump Organization in the past: court documents show the company previously went to court to get out of defending pollution allegations against Trump’s Chicago skyscraper, and the New York attorney general’s office alleged in the civil fraud case that Chubb appraisers were refused entry to Trump’s Manhattan penthouse in 2010, allegedly because Trump’s wife Melania Trump was sleeping.

Public records show Trump secured the bond using a Schwab investment account as collateral, which The New York Times speculates includes cash, stocks and bonds that the former president “could sell in a hurry.”

What To Watch For

Trump’s bond in the civil fraud case means New York Attorney General Letitia James, who brought the case, won’t be able to seize his assets while he appeals the court’s ruling against him and his co-defendants. While an appeals court lowered the amount that Trump had to pay immediately, however, he and his co-defendants—who include his sons Eric and Donald Trump, Jr., and former Trump Organization CFO Allen Weisselberg—will still have to pay the rest of the amount if they lose their appeal. It’s unclear how long the appeal will take to play out, though interest will continue to accrue on the full $464.6 million at a rate of nine percent per year until it’s fully paid off—which amounts to more than $111,000 per day for the $454.2 million that Trump personally owes alone.

Forbes Valuation

Forbes estimates Trump has $413 million in cash and liquid assets, part of a broader $5.7 billion net worth that’s more than doubled since his Trump Media and Technology Group went public and started trading last week. That’s enough to cover Trump’s lowered bond in the fraud case and the Carroll bond combined, although it still falls short of the full amount he needs to pay off his fraud case debt, should his appeal fail—and leaves much of his cash now tied up in bonds and unavailable to use for anything in the meantime.

Crucial Quote

“This is what we do at Knight insurance,” Hankey told Forbes Monday about the company underwriting Trump’s bond. “I’d never met Donald Trump. I’d never talked to him on the phone. I heard that he needed a loan or a bond, and this is what we do. So, we reached out, and he responded.”

Surprising Fact

Chubb CEO Greenberg defended the company helping Trump in a March letter to Chubb’s customers and investors, writing the decision to underwrite Trump’s bond had “nothing to do with the underlying merits or with favoring any of the parties” and describing the company as a “neutral party.” “I fully realize how polarizing and emotional this case and the defendant are and how easy it would be for Chubb to just say no. However, we support the rule of law and our role in it,” Greenberg wrote. “We considered this the right thing to do and we frankly left our own personal feelings aside.” The company declined to take on the civil fraud bond before the appeals court lowered the amount, however, with Trump’s attorneys noting in a court filing that while Trump and his co-defendants were in discussions with Chubb, they failed when the insurance company ultimately declined to accept real estate as collateral.

Tangent

In addition to the bonds he secured, Trump has also paid $5.5 million in cash into a court-controlled account while he appeals the verdict in Carroll’s separate first trial against Trump. A jury ordered Trump in that case to pay $5 million for defamation and sexual assault, after Carroll accused him of raping her in the 1990s and Trump attacked Carroll in response. (The jury did not find Trump liable for rape.)

Key Background

James sued Trump, his business associates and his company for misstating the value of assets on financial statements, which the attorney general alleged was done in order to obtain more favorable business deals and reflect a higher net worth for Trump. Judge Arthur Engoron sided with the attorney general, first finding Trump and his co-defendants liable for fraud even before a trial in the case began, and then ruling in February after the trial that there was “overwhelming evidence” suggesting the fraud was committed knowingly . The judge ruled Trump and his sons signed off on financial statements despite knowing the numbers in them were false, striking down claims from Trump’s attorneys that their valuations were correct numbers and any mistakes in the financial statements were the fault of the company’s accountants. In addition to the nine-figure monetary judgment levied against Trump, Engoron also ordered Trump’s sons Eric and Donald Trump Jr. to each pay $4 million plus interest, and for Weisselberg to pay $1 million. He also imposed other non-monetary penalties, including barring Trump and his sons from running New York businesses for three and two years, respectively. Trump asked an appeals court to lower the amount he had to pay after his lawyers claimed the ex-president couldn’t get a bond to cover the full amount he owed, warning he may need to have a “fire sale” of his real estate properties should he be on the hook for the full amount. The appeals court ultimately lowered the amount Trump had to pay immediately on March 25—the deadline for Trump to pay up, and for James to start seizing Trump’s properties if he hadn’t.