Connect with us

Politics

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

Published

on

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’

Advertisement

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.

Advertisement

“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!’

Letitia James and Donald 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.

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. 

Advertisement

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. 

CLICK TO GET THE FOX NEWS APP

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.

Advertisement

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

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Politics

U.S. Reveals Once-Secret Support for Ukraine’s Drone Industry

Published

on

U.S. Reveals Once-Secret Support for Ukraine’s Drone Industry

The Biden administration declassified one last piece of information about how it has helped Ukraine: an account of its once-secret support for the country’s military drone industry.

U.S. officials said on Thursday that they had made big investments that helped Ukraine start and expand its production of drones as it battled Russia’s larger and better-equipped army.

Much of the U.S. assistance to the Ukrainian military, including billions of dollars in missiles, air defense systems, tanks, artillery and training, has been announced to the public. But other support has largely gone on in the shadows.

That included helping Ukraine develop a new generation of drones and revolutionize how wars are fought, according to U.S. officials.

The innovations in Ukraine’s drone industry have been hailed as transformative, but the U.S. support has been less well understood. In addition to technical support, the U.S. has spent significant money, including $1.5 billion sent last September, to boost Ukraine’s drone production, officials said.

Advertisement

Jake Sullivan, the U.S. national security adviser, said the support had “a real strategic impact” on the war.

“We saw how UAVs were becoming increasingly central to the fight in Ukraine and will be central to all future fights,” Mr. Sullivan said in a statement on Thursday, referring to unmanned aerial vehicles.

The U.S. effort included money to support drone makers and to purchase parts. The United States also sent intelligence officials to Ukraine to help build its program, according to people who know about the effort.

In an interview this week, the C.I.A. director, William J. Burns, referred indirectly to his agency’s support for the drone program in Ukraine.

“I think our intelligence support has helped the Ukrainians to defend themselves,” Mr. Burns said. “Not just in the sharing of intelligence, but support for some of the systems that have been so effective.”

Advertisement

The White House declassified information about Russia’s plans to attack Ukraine ahead of the invasion. During the war, officials have regularly declassified information about Iranian and North Korean arms shipments to Russia.

Mr. Sullivan said the drone effort began after the Ukrainians’ first counteroffensive in the fall of 2022 as the limits of Ukraine’s conventional capabilities became clear.

The efforts accelerated, Mr. Sullivan said, in the preparation for Ukraine’s second counteroffensive. That push, in 2023, was ultimately less successful. Ukraine did not gain as much ground as it had wanted, in part because of Russia’s use of drones.

That 2023 counteroffensive was a hard lesson, U.S. officials said. Russian drones attacked U.S.- and European-provided tanks and armored vehicles as they tried to navigate minefields.

After the counteroffensive, U.S. officials said they rapidly increased support to Ukrainian drone makers, building on Kyiv’s efforts to grow its own industry. In addition to financial aid, the Biden administration worked to build ties between American technology companies and Ukrainian drone makers.

Advertisement

Last fall, the Pentagon allocated $800 million to Ukraine’s drone production, which was used to purchase drone components and finance drone makers. When President Volodymyr Zelensky of Ukraine visited the White House in September, President Biden said another $1.5 billion would be directed to Ukraine’s drone industry.

American officials said on Thursday that they believe the investments have made Ukraine’s drones more effective and deadly. They noted that Ukraine’s sea drones had destroyed a quarter of Russia’s Black Sea fleet, and that drones deployed on the front lines had helped slow Russia’s advances in eastern Ukraine.

Mr. Sullivan said the drive to build Ukraine’s drone industry had provided “invaluable lessons” that the Biden administration had started to integrate into America’s own defense industry.

Continue Reading

Politics

DeSantis' chosen Rubio replacement Moody wants to tackle inflation, spending, border: 'Audit the Fed!'

Published

on

DeSantis' chosen Rubio replacement Moody wants to tackle inflation, spending, border: 'Audit the Fed!'

Florida Attorney General Ashley Moody, who is slated to become a U.S. senator, is calling for an audit of the Federal Reserve, pledging to vocally oppose government spending, and declaring that she will fight to bolster the border and remove individuals who enter the U.S. illegally.

With Sen. Marco Rubio, R-Fla., poised to soon leave office to serve as Secretary of State in the new Trump administration, Florida Gov. Ron DeSantis announced Moody as his pick to replace Rubio in the U.S. Senate. 

And with even some Democrats planning to support confirmation, Rubio is likely to sail through the confirmation vote.

“Here’s a priority of mine in the Senate: our inflation has been fueled by the Federal Reserve. We must audit the Fed!” Moody declared in a post on X.

DESANTIS ANNOUNCES CHOICE FOR SENATE APPOINTMENT AFTER RUBIO’S EXPECTED RESIGNATION

Advertisement

“As Florida’s next U.S. Senator, I will work tirelessly to reduce the bloat of Washington and speak out loudly against government spending,” she noted in another post. “Like we’ve done in Florida, this country needs to cut spending and get fiscally responsible. I look forward to working with DOGE, and I will work hard to leave the next generation of our country on a much stronger financial footing.”

When discussing her role in confirming judges and justices, she specifically mentioned Supreme Court Justices Clarence Thomas and Samuel Alito.

“As a former judge, I will take my role confirming judges and justices seriously to ensure that, like Justices Thomas and Alito, they share the values and concepts of law as our Founding Fathers understood them,” she said in a tweet. “I will work through the Senate confirmation process to ensure those who get confirmed are strong nominees and know that it is their duty to interpret the Constitution as it is written.”

WHO IS ASHLEY MOODY? MEET THE SENATE’S NEWEST MEMBER FROM FLORIDA

Florida Attorney General Ashley Moody responds to cheering supporters after Gov. Ron DeSantis, left, announced her appointment as U.S. senator to replace Marco Rubio, during a news conference at the Rosen Plaza Hotel in Orlando, Fla., on Thursday, Jan. 16, 2025.  (Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images)

Advertisement

Sharing Moody’s post, DeSantis called Alito and Thomas “the gold standard.”

“In the U.S. Senate, I will support President @realDonaldTrump and fight for legislation that strengthens the border, builds the wall, and removes those who entered unlawfully,” Moody noted in a tweet.

DESANTIS TOUTS FLORIDA’S ‘FUTURE WAY OF THINKING,’ VOWS STATE WILL ‘DO OUR DUTY’ TO HELP INCOMING TRUMP ADMIN

DeSantis responded, declaring, “Make Illegal Immigration Illegal Again.”

Advertisement

Continue Reading

Politics

Migration across the U.S.-Mexico border, in 5 charts

Published

on

Migration across the U.S.-Mexico border, in 5 charts

A historic uptick in migration during Joe Biden’s presidency led to attacks as he ran for reelection, with Donald Trump and fellow Republicans blaming Democrats for the swelling number of people crossing the U.S.-Mexico border.

Now, after campaigning on promises to secure the border and deport undocumented immigrants, President-elect Trump is poised to take office Monday amid a steep drop in border crossings.

Here are five key facts about migration across the U.S.-Mexico border over the last several years.

1. Arrivals at the border are the lowest they’ve been since Trump left office

When Trump left office in January 2021, people were stopped at the southern border more than 78,000 times that month, according to figures from the U.S. Customs and Border Protection. That’s compared with roughly 96,000 stops last month. The highest monthly total during the Biden administration was nearly 302,000 in December 2023, and Trump’s highest total was just over 144,000 in May 2019.

These figures include arrivals at land ports of entry, where asylum seekers wait for appointments to enter legally, as well as those caught crossing illegally elsewhere along the border. Figures from November and December showed, for the first time, more migrants being processed through ports of entry than those who were arrested after entering the U.S. illegally.

Advertisement

In June, the Biden administration began effectively blocking migrants from seeking asylum along the U.S. border with Mexico. The restrictions don’t apply to those who enter at official ports of entry or use other legal means.

For parts of last year, San Diego became the top destination for illegal crossings along the U.S.-Mexico border for the first time in decades. The change reflects how smuggling routes, which used to be consistent for many years, have begun to shift every few months since 2021. That’s in part because of the post-pandemic increase in global migration to the U.S.

The San Diego region saw 10,117 border arrests in December — the second-highest after the Rio Grande Valley in Texas — though that’s down by 70% from a year earlier.

2. There hasn’t been much of an increase in border arrivals ahead of Trump’s inauguration

In the weeks leading up to Trump’s inauguration, most regions across the border have seen little change in arrivals of migrants. But Chief Border Patrol Agent Gloria Chavez of the Rio Grande Valley Sector in south Texas, who posts local arrest numbers on social media every week, reported 1,206 migrant stops over the final weekend of December, and 1,276 the weekend before. That’s double the number in recent weeks of fewer than 600 arrests.

“It is the first quantitative indicator of an increase in migration since the U.S. election, which raised expectations — so far unmet — that many migrants might rush to enter the United States before Election Day,” Adam Isacson, director of defense oversight at the advocacy organization the Washington Office on Latin America, wrote in a recent newsletter.

That trend appeared to have waned in the new year, with Chavez reporting 669 arrests the weekend that ended Jan. 5 and 699 arrests the weekend that ended Jan. 12.

Advertisement

Isacson noted that in 2016, asylum seekers rushed to enter the U.S. before Trump began his first term. But border policies are different now, with Biden administration rules already preventing most people who enter illegally from qualifying for asylum.

“Their only hope is to not be apprehended,” he said. “Some people might be trying, and if they’re successful they won’t show up in the numbers.”

Aaron Reichlin-Melnick, a senior fellow with the left-leaning American Immigration Council, said tens of thousands of migrants are waiting in Mexico.

“Today it is harder for migrants to make it to the border and seek asylum than at any point in modern U.S. history,” he said. “Despite this massively increased infrastructure at the border, the U.S. continues to remain, in the eyes of people around the world, a place of safety and security.”

3. The U.S. border used to draw mostly Mexican and Central American migrants. Now people from all over the world flock here

The U.S. has historically drawn migrants from its southern neighbor. Although Mexicans still make up the highest proportion of those seeking entry, arrivals of people from other countries have shot up over time. During Trump’s first term, people from Honduras, Guatemala and El Salvador flocked to the U.S. border due to instability in their home countries.

That started to change around 2019. Throughout Biden’s presidency, greater numbers of people began to arrive from Venezuela, Cuba and Colombia. People also came from farther away — Afghanistan, Ukraine and China.

Advertisement

The San Diego region has what is considered the most international border, drawing people from all over the world.

Chinese migrants in search of jobs and freedom from the repressive government there started arriving in record numbers — increasing from just 949 arrests in fiscal year 2022 to more than 37,000 last fiscal year. Republicans seized on the increase, painting it as a national security issue.

Numbers began to decrease last year after the Biden administration imposed asylum restrictions and Ecuador began requiring Chinese nationals to have a visa to fly there.

4. Immigrant detention has ramped back up since COVID-19 decreases

The government’s operation for detaining people who violate immigration laws has seen wild swings in recent years. During Trump’s first term, the population detained by Immigration and Customs Enforcement reached historic highs of more than 55,000 people.

As COVID-19 spread through lockups, killing detainees, courts ordered some immigrant detention centers to reduce their populations. The detention population reached a low of about 13,000 people in February 2021, the month after Biden took office. (The Adelanto ICE Detention Facility east of Los Angeles has remained under a COVID-era court order that prevented new detainees, dwindling the population of the nearly 2,000-bed facility to just two people.)

As of Dec. 29, more than 39,000 people (most of whom have no criminal record) are being held in civil immigrant detention facilities, according to TRAC, a nonpartisan data research organization. That number has remained fairly steady for the last year, generally fluctuating between 35,000 and just under 40,000 since late 2023.

Advertisement

Numbers are widely expected to increase again after Trump takes office, as he works to make good on his promise of mass deportations.

5. Historic arrivals under the Biden administration added to the already enormous backlog in immigration court

Immigrants placed in deportation proceedings can plead their case before an immigration judge. With historic arrivals of migrants under the Biden administration, the immigration court backlog now has more than 3.7 million pending cases, according to TRAC.

Biden inherited an already backlogged immigration court system with 1.3 million cases. When Trump assumed office in 2017, just over 542,000 cases were pending.

In fiscal year 2024, immigration courts closed more than 900,000 cases — the most of any single year. New cases have fallen sharply as fewer immigrants are processed at the border.

Los Angeles County has nearly 115,000 cases, the second-highest after Miami-Dade County. Experts say the backlog can’t be eliminated without funding hundreds more immigration judges and support staff, as well as systemic reforms.

Advertisement
Continue Reading

Trending