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Letitia James questions insurance coverage firm that helped Trump cowl $175 million bond: New York AG provides ex-president’s attorneys 10 days to show agency is certified to be concerned in fraud case

Letitia James questions insurance coverage firm that helped Trump cowl 5 million bond: New York AG provides ex-president’s attorneys 10 days to show agency is certified to be concerned in fraud case


New York AG Letitia James is elevating doubts in regards to the ‘sufficiency’ of the $175 million bond floated by a California billionaire that permits Donald Trump to go ahead with the enchantment in his New York fraud case.

Trump discovered a method this week to satisfy one other looming deadline to place up the cash for a court docket judgment towards him by acquiring a bond from an organization overseen by ‘subprime mortgage king’ Don Hankey.

Hankey advised DailyMail.com he approached Trump after listening to about his efforts to acquire bond for a bigger $454 million court docket judgment, then issued the bond for the decrease quantity after Trump’s workforce got here again to him.

James, who enraged Trump together with her menace to start out seizing items of his actual property empire if he did not pay the court docket judgement, in a brand new submitting Thursday wrote that her workplace ‘hereby takes exception to the sufficiency of the surety’ that was offered to the court docket.

She famous that Hankey’s California firm, Knight Speciality Insurance coverage Firm, shouldn’t be registered to challenge bonds in New York. 

For Surety: New York AG Letitia James gave Donald Trump 10 days to 'justify' a bond he secured from billionaire Don Hankey's company that allows him to appeal his fraud case and satisfy a $175 million court judgment

For Surety: New York AG Letitia James gave Donald Trump 10 days to ‘justify’ a bond he secured from billionaire Don Hankey’s firm that permits him to enchantment his fraud case and fulfill a $175 million court docket judgment  

She gave Trump’s attorneys an extra 10 days to ‘justify’ the bond, as she seeks assurances that the agency is ready to fulfil its obligation to again it up or pay if Trump defaults if he have been to lose his court docket enchantment.

That comes after Hankey stated Trump offered the total quantity in a Belief account that might function collateral. 

Knight Insurance coverage offered the court docket with a monetary assertion as of December 31, 2023 that listed belongings of $539 million, and a ‘surplus to coverage holders’ of $138 million.

Nonetheless state regulation places a ceiling on a single bond {that a} agency can present to 10 per cent of its ‘capital and surplus.’ That would seem to require holdings of $1.75 billion.

Trump paid his $175 million court docket judgement in his New York fraud case with the help of the ‘king of subprime automobile loans’ after the billionaire investor made the strategy himself.

‘I had heard that he was attempting to place collectively the $460 million bond. I reached out at the moment. We started to have a dialog. The bond obtained lowered,’ Hankey advised DailyMail.com.

‘So that they thanked us for the assistance attempting to place the bigger bond collectively. So we stated goodbye. A number of days later they referred to as again and stated, “Would you come again and do the $175 million bond?”‘

He was referencing a New York appeals court docket that lowered the quantity and gave Trump 10 days to safe a bond, after his attorneys stated in a submitting it was practically unattainable to acquire underwriting. 

Don Hankey, known as the 'king of subprime car loans,' reached out to Trump while the former president was seeking a bond to fight a court judgement against him. The billionaire Hankey's firm provided a bond on Trump'f $175 million court judgment

Don Hankey, known as the 'king of subprime car loans,' reached out to Trump while the former president was seeking a bond to fight a court judgement against him. The billionaire Hankey's firm provided a bond on Trump'f $175 million court judgment

Don Hankey, often called the ‘king of subprime automobile loans,’ reached out to Trump whereas the previous president was searching for a bond to struggle a court docket judgement towards him. The billionaire Hankey’s agency offered a bond on Trump’f $175 million court docket judgment

A filing Thursday by Knight Insurance attested to the $175 million bond

A filing Thursday by Knight Insurance attested to the $175 million bond

A submitting Thursday by Knight Insurance coverage attested to the $175 million bond

The company is based in Los Angeles

The company is based in Los Angeles

The corporate is predicated in Los Angeles

The filing listed the $175 million liability. James raised concerns about the 'sufficiency' of the guarantee

The filing listed the $175 million liability. James raised concerns about the 'sufficiency' of the guarantee

The submitting listed the $175 million legal responsibility. James raised considerations in regards to the ‘sufficiency’ of the assure

‘It was a lot simpler, as a result of he put up all money,’ he stated. Hankey departed from an earlier report that stated Trump offered collateral in money and funding grade bonds.

‘He first gave us a listing of bonds and we authorized the bonds as collateral together with some money. When the collateral was lastly posted it seems to be all money. Now we have a display screen shot of it and it was all money.’

Requested why Trump did not merely pay the award himself, he stated the transaction permits Trump to gather curiosity if the $175 million is invested in a cash market or different allowable funding automobile whereas being held in a belief account pending enchantment.

He stated he stated he did not have any considerations about lending to Trump, who declared chapter over his Atlantic Metropolis casinos many years in the past.

‘If the enchantment is misplaced or we have now to provide you with money, with a bond you solely have about 24 hours to provide you with the money,’ he stated. ‘If in case you have actual property it will possibly take months to liquidate the actual asset.’

He stated throughout preliminary conversations, he spoke with Trump intermediaries about utilizing actual property as collateral – one thing he stated he was keen to do.

‘I assumed his credit score was fairly good,’ stated Hankey, a Trump donor and Trump supporter who says he did not know the previous president personally. 

‘That’s what we do. We do this in Los Angeles. We work just a little bit exterior the field,’ he stated. He stated he charged a ‘very nominal payment’ he wouldn’t disclose. 

‘There’s not a lot threat that’s concerned if he places up the money. It’s being held in belief for us,’ he stated.

‘I’m a supporter glad to assist him additionally that is what we do at Knight [Specialty Insurance Company]. We’re simply doing our job,’ he stated.

‘We reached out to any person else and stated we’d do it. That phrase obtained again to him.’ He stated he interacted with Trump Group counsel Alan Garten and obtained a thanks name from Eric Trump when the bond was agreed to.

The outreach got here after Trump’s attorneys argued he couldn’t discover an establishment keen to again him when he was going through a bigger $454 million judgement that an appeals court docket knocked down.

Forbes estimates Hankey’s internet price at $7.4 billion, an quantity he doesn’t dispute.

He runs an LA-based auto providers empire referred to as the Hankey Group, specializing in debtors who’ve poor credit who nonetheless have to discover a method to purchase a trip. 

The appeals court docket gave Trump 10 extra days final month to acquire a bond, one thing he was capable of do on Tuesday whereas interesting the fraud judgment towards him.

Knight Specialty Insurance coverage Firm, one in all a number of divisions of the Hankey Group, offered the bond.

He absolutely acquired Halfway Ford in 1972, then expanded into lending.

He says the agency ‘began carrying among the paper that we couldn’t get a financial institution to hold. That was within the Nineteen Eighties. We began out subprime solely.’ Then he expanded to different debtors – with 1.5 million clients across the nation and about $15 billion in paper loans.

Hankey advised Forbes on Monday that he reached out to Trump shortly earlier than the appeals court docket acted.

Choose Arthur Engoron had issued an order requiring Trump to report on his efforts to acquire bond. 

The bond relies on cash as collateral. Axos Bank, in which Hankey is a top non-institutional investor, loaned $100 million to refinance Trump Tower

The bond relies on cash as collateral. Axos Bank, in which Hankey is a top non-institutional investor, loaned $100 million to refinance Trump Tower

The bond depends on money as collateral. Axos Financial institution, through which Hankey is a prime non-institutional investor, loaned $100 million to refinance Trump Tower 

Trump announced he had obtained the bond Monday while he appeals the court judgment in his New York fraud case

Trump announced he had obtained the bond Monday while he appeals the court judgment in his New York fraud case

Trump introduced he had obtained the bond Monday whereas he appeals the court docket judgment in his New York fraud case

‘I’d by no means met Donald Trump. I’d by no means talked to him on the telephone. I heard that he wanted a mortgage or a bond, and that is what we do,’ he advised Forbes. ‘Sure, I voted for him prior to now, however it is a enterprise deal and that is what we do. I’ve by no means met Donald Trump, nor talked to him on the telephone,’ stated Hankey.

He gave $2,700 to Trump’s presidential marketing campaign in 2016, together with a collection of state events and $32,400 to the Republican Occasion again in 2013. His spouse has additionally donated to Trump. 

Regardless of his fortune, Hankey doesn’t have a big media presence. 

Hankey can also be one of many largest non-institutional traders in Axos Financial institution, Bloomberg Information reported.  The financial institution loaned Trump $100 million to refinance Trump Tower and one other $125 million to refinance his Doral golf course in Florida at a time the fraud trial was placing his belongings below the microscope, in keeping with disclosure reports.

Hankey advised DailyMail.com he holds about 5 per cent of Axos, however had ‘nothing to do with’ the Trump Tower refinance. He was ‘not concerned in any respect’ within the different loans to Doral.

He stated he has been following Trump’s fraud trial however did not enterprise an opinion. ‘I don’t even assume I ought to remark. That is what Knight Insurance coverage does and we’re glad to challenge bonds,’ he stated. ‘It doesn’t matter when you’re Republican or Democrat, we’re glad to supply our providers to folks.’

Hanky had earlier stated Trump was utilizing money and funding grade bonds as collateral.

Meaning he is not utilizing his actual property belongings, after claiming the court docket judgement would power him to unload property at ‘hearth sale’ costs.

Hankey additionally backed one other trophy property, this one on the West Coast – the Bel Air mega home often called the One. His credit score on the property, which options 20 bed room and 30 loos, reached $100 million in 2022, with a nasty court docket struggle in chapter court docket over the 105,000 sq. foot property. 

He says his agency obtained ‘most of our a reimbursement’ together with all of its precept.  

The Hankey Group additionally contains arms together with Westlake Monetary Providers, Halfway Auto Group, and North Hollywood Toyota, the place consumers can get ‘pre-qualified in seconds’ for such autos as a 2016 Prius or a 2020 Corolla. 



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Written by bourbiza mohamed

Bourbiza Mohamed is a freelance journalist and political science analyst holding a Master's degree in Political Science. Armed with a sharp pen and a discerning eye, Bourbiza Mohamed contributes to various renowned sites, delivering incisive insights on current political and social issues. His experience translates into thought-provoking articles that spur dialogue and reflection.

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