US credit tycoon Don Hankey is behind Trump's huge bail

“business decision”
The US credit tycoon is behind Trump's huge bail

April 2, 2024, 8:31 AM

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Thanks to a $175 million bail, Trump can avoid having his assets seized after his fraud conviction. The money is deposited by an insurance company – which “coincidentally” belongs to one of the billionaire's supporters.

Upon request, Donald Trump will post $175 million bail so he can appeal his civil fraud conviction and protect his assets from prosecutors. Trump does not pay the amount to the court himself, but rather goes through Knight Specialized Insurance. Trump is sponsored by the insurance company, which is owned by American billionaire Don Hankey, an outspoken supporter of the former president.

“This is our job at Knight Insurance, and we are pleased that we can accommodate the former president in this position,” Hankey told ABC News. “I would say it's more of a business decision, but I'm also a supporter.” His company had already held discussions with Trump's representatives when the deposit was still $464 million. After reducing the amount last week, communication was resumed.

Hanke can't remember exactly what kind of assurances Trump gave. But there was money there. Hankey's firm “reviewed some of the former president's securities,” which he described as “prime bonds.” “We are confident that we have very good security,” said the American billionaire, who made his fortune from car financing loans and is now also active in the real estate sector.

Trump campaign donors and supporters

In another interview with Forbes, Hanke confirmed that he had not met the former president in person or spoken to him on the phone. But Hankey shouldn't be completely known to the Trump clan. The 80-year-old said he supported Trump financially in his election campaigns. But Hankey can no longer remember the exact amounts. The businessman was also involved as the largest individual owner of Axos Financial in helping Trump bail out mortgages on Trump Tower and his Miami resort in 2022. Axos has also previously done business with the family of Jared Kushner, Trump's son-in-law.

In February, after a months-long trial, New York Judge Arthur Engoron ordered Trump to pay $355 million plus interest after finding that the former president mispriced parts of his real estate empire, including low-interest loans, for his own financial gain. Obtains. The judgment now stands at $454 million, with interest continuing to accrue.

The fact that Trump raised the money means he is able to protect his assets from New York Attorney General Letitia James, who has threatened to seize the property. If Trump fails to appoint him, this scenario will be relevant again. Thanks to the Trump Media and Technology Group (TMTG) IPO, Trump is about $5.5 billion richer, but for now only on paper. Under the merger agreement, he cannot sell shares for at least six months. If he sells shares en masse, it could eventually cause the stock to collapse.