Donald Trump and his co-defendants secured a $175 million bond in a New York civil fraud lawsuit after a judge ruled that they had for years misrepresented the value of his properties. The bond is underwritten by a billionaire-owned insurance company that started out making high-risk, high-interest loans to automobile buyers with bad credit. Don Hankey, whose company provided the bond, is a little-known tycoon who made his $7.4 billion fortune through car dealerships and subprime auto loans, according to Forbes.
Hankey, whose company provided the bond, has never met or spoken with Trump
According to the Associated Press, Hankey has never met or spoken with Trump, and his Knight Speciality Insurance company provided both cash and bonds as security for Trump’s appellate bond. That bond is a placeholder, guaranteeing payment if the decision against Trump is upheld on appeal.
“This is the work Knight Insurance does, and we’re happy to do this for anyone who needs a bond,” Hankey stated.
Who is Don Hankey?
Don Hankey ventured into the car industry in 1958 when his father purchased a stake in a Ford dealership in Los Angeles. Hankey, who was a teenager at the time, began his summer job washing vehicles before transitioning to a sales position.
Hankey’s father died, and his family lost their part in the auto dealership. However, a few years after Hankey graduated, his family repurchased the dealership with a $250,000 loan.
After purchasing the dealership, Hankey courted buyers that other car dealers frequently rejected: subprime borrowers. His dealership offered loans, as opposed to other automobile dealerships, which generally seek credit from banks.
Hankey ventured beyond auto dealerships after recognizing the demand for subprime auto loans beyond Los Angeles.
Is Don Hankey a Trump supporter?
Hankey voted for Trump but said that his support for the former president had no bearing on his decision to extend the bond.
“Yes, I voted for him in the past, but this is a business deal, and this is what we do,” Hankey said. “I have never met Donald Trump, nor talked to him on the phone.”