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NY AG Letitia James asks judge to void Trump's $175M bond in civil fraud case

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NY AG Letitia James asks judge to void Trump's 5M bond in civil fraud case

New York Attorney General Letitia James is pushing the judge in former President Donald Trump’s civil fraud case to void the $175 million bond that Trump previously posted to appeal his New York civil lawsuit.

In her 26-page filing obtained by Fox News Digital, James questions whether the insurance company has sufficient funds to back it up.

Trump’s bond was posted by California-based Knight Specialty Insurance Company (KSIC), but James argued that the insurer was “not authorized” to write business in New York, stating it is a small insurer that is not authorized to write business in New York and is not regulated by the state’s insurance department, had never before written a surety bond in New York or in the prior two years in any other jurisdiction, and has a total policyholder surplus of just $138 million.

The company has a total policyholder surplus of just $138 million, the filing states. According to New York state law, smaller businesses like KSIC are not permitted to expose themselves to liabilities, like a bond, or any potential loss greater than 10 percent of their surplus.

NEW YORK AG TAKES VICTORY LAP AFTER TRUMP FRAUD RULING: ‘JUSTICE HAS BEEN SERVED’

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New York Attorney General said she is “prepared” to ask the judge to seize former President Donald Trump’s assets if he cannot pay the $354 million judgement handed down in his civil fraud case.  (ABC News/Screenshot/Brendan McDermid-Pool/Getty Images)

“Based on KSIC’s policyholder surplus in its most recent annual financial statement of $138,441,671, the limitation of loss on any one risk that KSIC is permitted to write is $13.8 million,” the lawyers wrote. “The face amount of the bond exceeds this limitation by $161.2 million.”

James also wrote in the filing that “KSIC is not qualified to act as the surety under this standard because its management has been found by federal authorities to have operated affiliated companies within KSIC’s holding company structure in violation of federal law on multiple occasions within the past several years.”

“KSIC does not now have an exclusive right to control the account and will not obtain such control unless and until it exercises a right to do so on two days’ notice,” the filing read.

James also wrote that the Court should not rely on KSIC’s financial summary attached to the bond as evidence that KSIC has sufficient capacity to justify writing a $175 million bond.

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“That is because KSIC sends 100% of its retained insurance risk to affiliates in the Cayman Islands, where lax regulations allow KSIC to use this risk transfer to reduce the liabilities it carries on its books in a way that artificially bolsters its surplus, a practice New York regulators have dubbed “shadow insurance” and about which they have sounded the alarm,” the filing read. 

For these reasons, James writes that the Court should deny the Motion and require Defendants to post a replacement undertaking within seven days of the Court’s ruling.

NY AG LETITIA JAMES BOOED AT FDNY CEREMONY WITH CHANTS OF ‘TRUMP! TRUMP! TRUMP!’

Democrat New York Attorney General Letitia James and former President Donald Trump. (Getty Images)

In September, Judge Arthur Engoron ruled that Trump and the Trump Organization had committed fraud while building a real estate empire by deceiving banks, insurers and others by overvaluing his assets and exaggerating his net worth on paperwork used in making deals and securing financing.

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The judge also prohibited Donald Trump Jr. and Eric Trump from serving as an officer or director of any New York corporation or legal entity in New York for two years. 

The former president has repeatedly slammed the case against him and denied any wrongdoing, calling it a “witch hunt.” 

James brought the lawsuit against Trump, accusing Trump and the Trump Organization of fraudulent business practices. James claimed Donald Jr., Ivanka, and Eric, as well as his associates and businesses, committed “numerous acts of fraud and misrepresentation” on their financial statements.

Trump has pleaded not guilty on all counts. 

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The judge is expected to hold a hearing Monday to discuss the issues raised by the attorney general’s office. The hearing is set to run in conjunction with opening statements in Trump’s New York criminal trial.

Fox News’ Brooke Singman and Timothy Nerozzi contributed to this report.

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Supreme Court Expands Presidential Powers to Fire Independent Regulators

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The Supreme Court ruled 6-3 that President Trump could fire independent regulators for any reason. But the justices carved out an exception for the Federal Reserve, preventing the immediate removal of Lisa D. Cook, a Federal Reserve governor.

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Emotion and feelings: How Democratic Socialists’ congressional insurgency could come back to bite them

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Emotion and feelings: How Democratic Socialists’ congressional insurgency could come back to bite them

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Democratic Socialists of America are on the charge, running hot off their wins in the New York Democratic primaries last week. Their victories in multiple Congressional seats – felling both Reps. Adriano Espaillat, D-N.Y., and Dan Goldman, D-N.Y. – signals that the party is ready to move on from the same old, same old.

Espaillat chaired the Congressional Hispanic Caucus. Goldman was a key House staffer during the first impeachment of President Donald Trump.

“Even Dan Goldman’s not good enough for them,” said House Judiciary Committee Chairman Jim Jordan, R-Ohio, on Fox. “That is how radical it’s become.”

Some moderate Democrats are trying to distance themselves from the left.

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MAMDANI-BACKED SOCIALISTS LOOK TO TAKE NEW YORK PLAYBOOK NATIONWIDE AFTER PRIMARY VICTORIES

The left flank of the Democratic Party has surged to the top of the nation’s most hotly-contested primaries. (Michael M. Santiago/Getty Images)

“That’s not the same brand of politics that we have. We’re not those type of Democrats,” said Rep. Tom Suozzi, D-N.Y., who represents a battleground district.

“There’s a new group of Democratic Socialists who are socialists who are not commonsense Democrats. Who are not interested in getting things done. They’re interested in throwing bombs. Not actually solving problems,” said Rep. Josh Gottheimer, D-N.J.

LURCHING LEFT: MAMDANI-BACKED CANDIDATES OUST ESTABLISHMENT DEMOCRATS

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Some Democrats are worried how far left candidates command more attention than those in the middle. Rep. Kristen McDonald Rivet, D-Mich., worries that the outsized attention garnered by the left sends the wrong impression to voters.

“What they don’t want is divisiveness. They don’t want screaming and yelling,” said McDonald Rivet.

Mainstream Democrats feel trapped in the middle as the left – specifically the New York City left – wields an outsized media and political megaphone.

“Those candidates would not have won in Virginia where I live,” said Rep. Suhas Subramanyam, D-Va.

Rep. Tom Suozzi, D-N.Y., is among the moderate Democrats trying to distance themselves from the party’s insurgent wing. (Nathan Posner/Anadolu via Getty Images)

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Republicans believe they are primed to nationalize the midterms. Republicans can do that by highlighting the extreme views of Democratic Socialists who captured primary victories in New York City. The GOP wants to portray their opponents as veering left.

“These are board-certified communists, right?” asked Sen. Roger Marshall, R-Kan. “They want no police. They want no private property.”

President Trump capitalized on the Democratic outcomes in his home city.

“The Democrat party is in big trouble because this isn’t stopping with New York,” he forecast.

VICTORIES BY MAMDANI-BACKED CONGRESSIONAL CANDIDATES SPOTLIGHTS GROWING RIFT IN DEMOCRATIC PARTY

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This shakeup has progressive leaders demanding transformation at the top.

“You’re going to see, I think, people voting for new leadership and to change their representation,” said Rep. Alexandria Ocasio-Cortez, D-N.Y.

The Democratic Party tapped Sen. Elissa Slotkin, D-Mich., to deliver their official response to President Trump’s 2025 State of the Union speech. Slotkin is a moderate who won in a battleground race in 2024 – even as the President prevailed in the Wolverine State. But during an appearance on SiriusXM, Slotkin insists on a Democratic Party management switch.

“If people can’t understand that the game has fundamentally changed and they can’t adapt, then they need to let others,” said Slotkin. “The old models do not work for people.”

House Minority Leader Hakeem Jeffries, D-N.Y., is perceived by Republicans as vulnerable after his preferred candidates failed in their congressional primaries. (Roberto Schmidt/Getty Images)

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Republicans believe House Minority Leader Hakeem Jeffries, D-N.Y., is vulnerable after the DSA elected their candidates over his preferred picks in New York City.

“I think Hakeem Jeffries’ friends and neighbors gave him a big middle finger,” said House Oversight Chairman James Comer, R-Ky. “If you lose three elections in your hometown, that’s a pretty big slap in the face.”

He added that Democrats “are going further and further to the left to the point where they are full-blown, card-carrying socialists.”

And then there is the anti-Israel, anti-Jewish, and in some cases, antisemitic take by some of these candidates. Rep. Greg Landsman, D-Ohio, is a moderate Democrat from a swing district. He’s Jewish and one of the most pro-Israel Democrats in the House.

“There are some on the left who use Israel the way that some on the right use immigrants or trans kids as a way to divide. And I think it’s terrible. It’s also just not what voters want us talking about,” said Landsman.

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HOUSE DEMOCRAT LASHES OUT WHEN GRILLED ON WHETHER SOCIALIST VICTORIES WOULD THREATEN DEM UNITY

Yours truly tangled with Rep. John Larson, D-Conn. – who once chaired the House Democratic Caucus. I pressed him about what the party would do about some candidates “who are too far to the left.”

“What does that mean? That’s your statement. Did the people of New York vote?” queried Larson.

I assured him that they did.

“Is that democracy?” asked Larson.

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“But if some of them are antisemitic,” I countered.

“Is that a democracy?” continued Larson.

“Will you stand by people if they have antisemitic views?” I followed up.

Larson finally addressed my inquiry. His answer crystallized the schism the Democratic Party now faces.

“I’m against antisemitism, if that’s your question,” Larson declared.

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Rep. John Larson, D-Conn., got into a heated exchange with Fox News’ Chad Pergram over the views of some likely members of his party’s next freshman class. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

The fact that Democrats are now facing this debate robs them of valuable time on economic issues.

Landsman argued that voters would prefer candidates to stick to groceries and the price of gas.

Gottheimer echoed Landsman on kitchen table subjects.

“We should be focused on ways to actually solve problems like that. Not coming in here and using tea party tactics and trying to divide up the country and pray to socialist ideals,” said Gottheimer.

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So what is the party to do?

DEMOCRACY ’26: STAY UP TO DATE WITH THE FOX NEWS ELECTION HUB

“They’re our nominees. We’re going to support them. We’re going to welcome them. They’re going to be part of our caucus and we’re going to unite behind Leader Jeffries,” said Rep. Robert Garcia, D-Calif., the top Democrat on the Oversight panel.

But that doesn’t address the fissures. It doesn’t address how voters may perceive the party. And it doesn’t establish if these new Democratic nominees will work on behalf of the party to raise money and advocate for Democrats across the board. Or, will they become professional bomb throwers – ala what the right has endured for a while.

“It’s going to be a lot harder to get things done when you get more and more extreme candidates who are here because they’re interested in political celebrity. They are interested in fighting. They’re interested in making points,” asserted Rep. Dusty Johnson, R-S.D.

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Republicans have had an abysmal week themselves – President Donald Trump and Sen. Bill Cassidy, R-La., for instance, got into a shouting match over Iran. (Chip Somodevilla/Getty Images; Tyler Kaufman/Getty Images)

Republicans suffered through an absolutely abysmal week. House GOP leaders had to yank multiple bills off the floor and send lawmakers home early because of internal disputes. President Trump and Sen. Bill Cassidy, R-La., got into a shouting match about Iran. And the president even threatened to veto a bipartisan housing bill. President Trump then refused to sign the bill at the Capitol, despite his aides touting the bill and House Republicans tricking out Statuary Hall for a signing ceremony.

The President characterized the housing bill as “a yawn.”

But the Democrats’ internal fractures may have superseded any internecine fighting among Republicans.

“While it’s not been a great week for Republicans, I think it’s been a much worse week for Democrats because of these primary elections,” observed Rep. Mario Diaz-Balart, R-Fla.

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Democrats will certainly run on economic issues and capitalize on statements by the President about basic issues like housing. But will a genuine policy debate outweigh fears about progressives nationwide?

Emotion and feelings rule in politics. And it could be a problem for Democrats if Republicans appropriate what happened in New York and Xerox it onto battleground districts across the country.

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Anthropic partners with California to expand AI use by government workers

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Anthropic partners with California to expand AI use by government workers

Anthropic teamed up with California to get more state workers to use its artificial intelligence assistant Claude as part of an effort to leverage technology to make the government more efficient.

Gov. Gavin Newsom, who announced the partnership on Monday, said state agencies will be able to access Claude at a 50% discount. Free training and other assistance will also be available to the workers. California’s local governments will also get the same discount under the agreement.

Government workers can use Claude to draft and summarize documents, analyze information and do other tasks.

Anthropic, an AI company based in San Francisco, has a version of its AI assistant for government clients that provides more security than what it provides other consumers.

The new partnership shows how AI is playing a bigger role at work as tech companies market their tools as ways to complete tasks more quickly. Last year, San Francisco made Microsoft 365 Copilot Chat, which is powered by OpenAI’s model, available to nearly 30,000 city employees.

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Still, the rise of automation at work has heightened concerns that people will lose their jobs. There are also worries that there are not yet adequate guardrails in place to mitigate data privacy and security risks.

Anthropic and the governor said that they’re focused on the responsible use of AI.

“AI should not replace the human work of government; it should help our workers move faster, solve problems more effectively, and deliver better results for Californians,” Newsom said in a statement.

The remarks didn’t appear to comfort union leaders.

“Wow. Look local government, the Gov is giving you a 50% off coupon to give up your residents’ private data, outsource your jobs to big tech. Isn’t that cool? Because California basically invented AI slop!” said Lorena Gonzalez Fletcher, president of the California Federation of Labor Unions, AFL-CIO, in a post on X.

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Anthropic has faced political hurdles as it pushes to get more companies and government agencies to use its products.

Most notable, it’s sparred publicly with the Trump administration, which ordered the company to cut off foreign access to its most powerful AI systems this month.

The Trump administration cited potential national security risks, but Anthropic disagreed with the findings. Last week, tensions decreased after the U.S. government gave Anthropic permission to restore access to its AI model Mythos to certain clients.

Valued at nearly $1 trillion, Anthropic has also signaled it plans to become a publicly traded company.

California has already started using Claude more in state government to develop tools to get the public to engage more in AI policy discussions and assist state workers, the governor’s office said in its news release.

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State agencies, including the Department of Motor Vehicles, are also using AI to reduce wait times and improve customer service.

“As state employees, our goal is to provide our fellow Californians with the best possible service,” Government Operations Agency Secretary Nick Maduros said in a statement. “To do that, we need to make sure our teams have access to the best modern tools, including Claude and other emerging technologies.”

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