Don Hankey, the CEO of the company that assisted Donald Trump with the payment of his civil fraud bond, is now under scrutiny due to the company’s continued relationship with the Trump family. Reports also confirm that he is under scrutiny for his links to a different company that has generated its own controversy as well.
Donald Trump Posted $175M Bond To Prevent Seizure Of Assets
Former U.S. President Donald Trump reportedly posted a $175 million bond on April 1 to prevent the state from proceeding with a seizure of his assets. Even with the bond payment made, Trump is still currently appealing a ruling involving him and several top executives from his organization.
Multiple reports confirm that the ruling concluded that Donald Trump and top executives from The Trump Organization inflated his asset values to obtain favorable terms from insurers and lenders.
Trump Secured Bond Through Knight Specialty Insurance Company
Donald Trump reportedly secured his bond directly through Knight Specialty Insurance Company. This company is owned by the privately-held Hankey Group, which is led by Don Hankey.
Hankey is reportedly the head of both organizations. In addition, Hankey is the largest individual shareholder for the Internet bank “Axos.” According to Forbes, Hankey holds 6 percent of the company.
Legal Analyst Describes Hankey As ‘King Of Subprime Car Loans’
Legal analyst Lisa Rubin targeted Don Hankey in a social media post on X/Twitter regarding the underwriting of Trump’s bond. She wrote on X/Twitter that Don Hankey is the “so-called ‘king of subprime car loans.'”
Rubin concluded her post by mentioned “that’s not all.” She then shifted her focus specifically towards Axos.
Rubin Targets Axos, References Refinancing Of Loans On Trump Tower And Doral
Rubin stated in another X/Twitter post that Axos is “the financial institution that refinanced Trump’s loans on Trump Tower and Doral in 2022.” She added that Axos loaned Donald Trump $100 million in his refinancing of Trump Tower.
She continued by stating that Axos loaned Trump an additional $125 million for Doral. According to Rubin, “both loans are not due until 2032.”
Axos Has A History Of Multiple Lawsuits Filed Against It
Axos has also had a history of lawsuits filed against it over the years. For instance, Charles Matthew Erhart blew the company whistle by filing a lawsuit against Axos in 2015.
Erhart alleged that there was unlawful retaliation involved with his terminated employment. He apparently raised concerns about questionable practices that were happening behind the scenes at the bank.
Erhart Awarded $1.5 Million From Lawsuit Against Axos
Erhart was awarded $1 million in May of 2022 in damages caused by emotional distress or the harm that was done to his reputation as a result of the lawsuit. He was also awarded an additional $500,000 for defamatory statements that were made about him.
Erhart claimed that the bank was involved in dubious business practices – including the allowance of criminal borrowers. He also claimed that Axos CEO Gregory Garrabrants deposited third-party checks directly into his personal bank account.
Judge Originally Said Trump Must Pay $464 Million In Penalties, Interest
Judge Arthur Engoron initially told Donald Trump that he would have to pay a lot more than the $175 million he eventually posted as his bond. Multiple reports show that he was ordered to pay nearly $464 million.
That amount included the penalties for the fraud charges in addition to the interest accrued
Appeals Court Ruled That Donald Trump Could Pay Much Lower Amount
It was reportedly an appeals court that saved Donald Trump hundreds of millions of dollars in penalties and associated fees. The appeals court ruled in late March that Trump could proceed with a much lower amount than the original penalty of $454 million.
Donald Trump responded to the appeals court’s decision with a post on social media. He wrote on Truth Social that they would “abide by the decision of the Appellate Division, and post either a bond, equivalent securities, or cash.”
New York Attorney General Hit Trump With The Massive Penalty In Civil Fraud Suit
New York Attorney General Letitia James made headlines back in February when she hit Donald Trump with a massive penalty related to his civil fraud suit. The suit was brought against Trump and The Trump Organization after they were accused of a long-term scheme to inflate his net worth and asset values.
Trump was originally given a deadline of April 1, 2024 to either post an appeal bond of the same amount of pay the penalty fee. That would have stayed the enforcement of the actual ruling as Trump’s legal team continued to fight the original decision.
Trump Experienced Difficulties With Securing The Full Bond Amount
According to court filings and other reports, Donald Trump experienced a lot of difficulty with securing the full amount required. Over 30 surety entities reportedly denied his request for coverage of the full bond.
He sought a bond of $464 million to cover the full disgorgement of his sons Donald Jr. and Eric who were listed as co-defendants within the case.
Trump’s Legal Team Requested That He Pay A Smaller Amount For Appeal Bond
Donald Trump’s legal team issued a filing to a New York appeals court last week regarding the bond amount. The team reportedly asked the court to allow Trump to post a much smaller amount.
The team referred to the full amount of the fees and accrued interest as a “practical impossibility.”
Trump’s Lawyers Requested $100 Million Bond, Court Ruled In Favor Of $175 Million
Trump’s attorneys reportedly aimed to get a $100 million bond request approved by the court. However, the court ruled that Donald Trump could post $175 million instead.
Monday was the original deadline for the payment, according to the ruling. However, the appellate court awarded Trump a 10-day extension that would give him more time to post the lowered bond amount.
Trump Criticizes Judge Engoron, Claims He ‘Did Nothing Wrong’
Within the same social media post where he said he would “abide by the decision,” Trump also criticized Judge Arthur Engoron within a lengthy rant. Trump stated that the decision by the Appellate Division “shows how ridiculous and outrageous Engoron’s original decision was at $450 million.”
Trump added that he “did nothing wrong.” He also stated that “New York should never be put in a position like this again.”
Donald Trump: ‘Businesses Are Fleeing’ And ‘Violent Crime Is Flourishing’
Donald Trump concluded his Truth Social post with a message about other things that are taken place within New York. For instance, he stated that “businesses are fleeing” and “violent crime is flourishing.”
Trump also added that “it is very important that this be resolved in its totality as soon as possible.”
