The involvement of Don Hankey and his company, Knight Specialty Insurance Company, in underwriting Donald Trump’s $175 million appeal bond in New York state’s civil fraud suit has captured significant attention due to Hankey’s background in offering subprime auto loans and his support for Trump’s political endeavors.
Hankey, a California-based businessman, has garnered substantial wealth, estimated at $1.6 billion by Forbes, largely through his ventures in lending money to auto buyers with flawed credit histories. His company, Knight Specialty Insurance Company, specializes in various insurance services, including providing surety bonds for individuals and businesses.
The appeal bond secured by Hankey’s company is pivotal for Trump, as it puts a $454 million judgment on hold while Trump appeals a ruling from Justice Arthur Engoron. Engoron’s ruling implicated Trump in years of financial misrepresentation aimed at inflating his real estate empire’s value. Additionally, the ruling imposed restrictions on Trump and several top Trump Organization executives, prohibiting them from holding leadership positions in New York-based companies for several years.
According to Hankey, his company proactively reached out to Trump to initiate the deal, offering both cash and investment-grade bonds as collateral for the appellate bond. Despite never having met or directly communicated with Trump before, Hankey expressed his willingness to assist Trump, emphasizing that providing financial support in such situations aligns with his company’s core business operations.
This isn’t the first time Hankey has been involved in business dealings with Trump. In 2022, Hankey’s significant ownership stake in Axos Financial facilitated the refinancing of Trump’s mortgages at Trump Tower in Miami. Axos Financial also provided loans backed by properties owned by Trump’s son-in-law, Jared Kushner, during Kushner’s tenure as CEO.
Hankey’s intervention has effectively safeguarded Trump’s assets, including his prized property at 40 Wall St., from potential seizure by New York Attorney General Letitia James. James had threatened to seize Trump’s assets if he failed to meet the judgment or secure an adequate bond.
Trump’s legal team had reportedly faced challenges in securing the appeal bond, approaching numerous surety firms without success. Trump’s reluctance to sell his properties at reduced prices further complicated the situation. Hankey’s involvement has provided a lifeline for Trump, allowing him to navigate the legal complexities and buy time to pursue his legal appeals.