New York AG says $175 million Trump fraud bond isn't properly backed, should be voided

[moniss]

10. It is also important to note

that, while a non-admitted company can issue a bond or policy under certain circumstances, you would be on your own regarding any enforcement in the case of a default. Meaning the state of NY would have to look at many millions in legal expenses and perhaps many years only to end up with nothing. Knight could have that subsidiary file bankruptcy the minute a claim for that NY bond came in and then face a nightmare scenario of trying to get any money.

Move against the properties and maybe find there is little value beyond the leverage along with having umpteen different other creditors hitting you with lawsuits trying to hamstring you while trying to preserve their "interests". Even if they would all be unsuccessful you might still be looking at millions in litigation and many years.

It's a bad situation without a true escrow of the bond amount. The house of cards Knight and the Orange Ruski constructed is worse than worthless. It's a potential money trap of legal costs.