“Incomprehensible”: Experts say Trump’s $175 million bond makes no sense

[berg80]

Former President Donald Trump’s effort to challenge his massive civil fraud conviction itself appears to rely on deception, The Daily Beast reported Monday.

Last week, Trump posted a $175 million bond to appeal his $454 million fraud conviction in New York — this, after his lawyers claimed he was unable to find anyone willing to guarantee he would actually pay the full amount. In order to post that bond, the former president turned to Knight Speciality Insurance Company, led by billionaire Don Hankey, described by MSNBC legal analyst Lisa Rubin as the “king of subprime car loans.”

But according to former regulators and other legal experts, the bond is highly irregular. Per a legal filing, it amounts to little more than a promise that Trump himself could pay the full cost of the bond if he ultimately loses his appeal, The Daily Beast reported, noting that such an arrangement effectively negates “the whole point of an insurance company guarantee.”

It does not appear that Knight Specialty Insurance Co. could even cover the bond if it wanted: according to a court filing, the company has financial reserves of just $138 million. And while a related corporate entity claims a financial surplus of $1 billion, the court filing does not explicitly state that it would be liable.

“Based on the financial statement provided, Knight Specialty is providing a bond that is one-third of its total assets and greater than its surplus, which is incomprehensible for a carrier to underwrite,” Maria T. Vullo, a law professor at Fordham University who previously served as New York’s top financial regulator, told the publication.
“Incomprehensible”: Experts say Trump’s $175 million bond makes no sense

Donald Trump Forced to Reveal His Finances to Save His Properties

Documents for Donald Trump's $175 million bond in his New York civil fraud case were rejected by a court because a current financial statement was not included.

On Wednesday, a message on the New York State Supreme Court's electronic filing system showed Trump's "Bond/Undertaking" had been "returned for correction."
Donald Trump forced to reveal his finances to save his properties


Who put up Trump's $175 million bond? A subprime car loan billionaire who has run afoul of regulators
Don Hankey made a fortune building a subprime auto loan empire. Along the way, his companies racked up consumer complaints, regulatory fines and were sued by the DOJ.
https://www.nbcnews.com/business/bu...75-million-bond-subprime-car-loans-rcna146232

Westlake and its subsidiary Wilshire Commercial Capital, the DOJ complaint alleged, illegally repossessed at least 70 vehicles owned by military service members protected under the Servicemembers Civil Relief Act. The companies paid $761,000 to settle the allegations. Five years later, the Justice Department returned with another complaint against Westlake, alleging that it had failed to provide service members with interest rate benefits they were owed under the law. The company paid $225,000 to settle that matter.

“Service members make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said Martin Estrada, U.S. Attorney for the Central District of California, at the time of the settlement.
.........................................................................................................................................
Not surprisingly, everything about this bond arrangement stinks. Not the least of which is the company putting up the bond. The guy who owns it being the the kind of slimeball one would think Don would get in financial bed with. Someone who tried to rip off people in the military. Someone who was fined for his illegal debt collection practices.

Grifters gonna grift.

 

[CrazyTrader55]

Former President Donald Trump’s effort to challenge his massive civil fraud conviction itself appears to rely on deception, The Daily Beast reported Monday.

Last week, Trump posted a $175 million bond to appeal his $454 million fraud conviction in New York — this, after his lawyers claimed he was unable to find anyone willing to guarantee he would actually pay the full amount. In order to post that bond, the former president turned to Knight Speciality Insurance Company, led by billionaire Don Hankey, described by MSNBC legal analyst Lisa Rubin as the “king of subprime car loans.”

But according to former regulators and other legal experts, the bond is highly irregular. Per a legal filing, it amounts to little more than a promise that Trump himself could pay the full cost of the bond if he ultimately loses his appeal, The Daily Beast reported, noting that such an arrangement effectively negates “the whole point of an insurance company guarantee.”

It does not appear that Knight Specialty Insurance Co. could even cover the bond if it wanted: according to a court filing, the company has financial reserves of just $138 million. And while a related corporate entity claims a financial surplus of $1 billion, the court filing does not explicitly state that it would be liable.

“Based on the financial statement provided, Knight Specialty is providing a bond that is one-third of its total assets and greater than its surplus, which is incomprehensible for a carrier to underwrite,” Maria T. Vullo, a law professor at Fordham University who previously served as New York’s top financial regulator, told the publication.
“Incomprehensible”: Experts say Trump’s $175 million bond makes no sense

Donald Trump Forced to Reveal His Finances to Save His Properties

Documents for Donald Trump's $175 million bond in his New York civil fraud case were rejected by a court because a current financial statement was not included.

On Wednesday, a message on the New York State Supreme Court's electronic filing system showed Trump's "Bond/Undertaking" had been "returned for correction."
Donald Trump forced to reveal his finances to save his properties


Who put up Trump's $175 million bond? A subprime car loan billionaire who has run afoul of regulators
Don Hankey made a fortune building a subprime auto loan empire. Along the way, his companies racked up consumer complaints, regulatory fines and were sued by the DOJ.
https://www.nbcnews.com/business/bu...75-million-bond-subprime-car-loans-rcna146232

Westlake and its subsidiary Wilshire Commercial Capital, the DOJ complaint alleged, illegally repossessed at least 70 vehicles owned by military service members protected under the Servicemembers Civil Relief Act. The companies paid $761,000 to settle the allegations. Five years later, the Justice Department returned with another complaint against Westlake, alleging that it had failed to provide service members with interest rate benefits they were owed under the law. The company paid $225,000 to settle that matter.

“Service members make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said Martin Estrada, U.S. Attorney for the Central District of California, at the time of the settlement.
.........................................................................................................................................
Not surprisingly, everything about this bond arrangement stinks. Not the least of which is the company putting up the bond. The guy who owns it being the the kind of slimeball one would think Don would get in financial bed with. Someone who tried to rip off people in the military. Someone who was fined for his illegal debt collection practices.

Grifters gonna grift.

A. I've learned not to pay attention to "experts"
B. The system is rigged against Trump.
C. You have TDS.

"Experts" told us that the covid vaccine would, you know, stop transmission of covid. "Experts" told us we needed to be locked down.
"Experts" told us that putting a piece of cloth over our face would stop transmission of covid.

From now on, I won't be relying on "experts".

 

[pknopp]

At least we know why he was unwilling to release his tax returns.

 

[Moonglow]

A. I've learned not to pay attention to "experts"
B. The system is rigged against Trump.
C. You have TDS.

So when the tax expert tells you that you owe taxes you ignore them?

 

[Moonglow]

At least we know why he was unwilling to release his tax returns.

Cause he ain't got shit he claims he does?

 

[berg80]

A. I've learned not to pay attention to "experts"
B. The system is rigged against Trump.
C. You have TDS.

You exhibit the simplistic thinking of a ten year old. It's why you're a MAGAist.

 

[pknopp]

Cause he ain't got shit he claims he does?

We knew that when he bragged on his hand size.

 

[CrazyTrader55]

So when the tax expert tells you that you owe taxes you ignore them?

I do my own taxes on Turbo Tax.
Any more comments?

 

[berg80]

Over the past year, records compiled by the agency show an almost daily stream of customer allegations against Westlake, ranging from improperly repossessed vehicles, charges on a loan the customer did not sign up for, and failing to provide accurate loan balance and payment histories to credit reporting agencies. Such inaccuracies can cripple consumers’ ability to get other loans, lease residences or even secure jobs.

Hankey is deplorable, making him a perfect fit for Don.

 

[Moonglow]

I do my own taxes on Turbo Tax.
Any more comments?

Yes, I suppose you ignore Turbo Tax suggestions

 

[SeaMajor7]

Yeah, a completely egregious fine for a non-crime with no victims or money lost.....
That MAKES NO FUCKING SENSE!!!!!!!!!!!!!

 

[berg80]

New York Attorney General Questions Trump’s $175 Million Bond Deal

Now, however, Ms. James is raising questions that could imperil the deal with Knight, which is owned by Don Hankey, a billionaire who made his fortune with subprime loans. And the judge in the case, Arthur F. Engoron, has tentatively scheduled a hearing for April 22 to discuss the bond.

In a court filing on Thursday, Ms. James noted that Knight was not registered to issue appeal bonds in New York, and so she demanded that the company or Mr. Trump’s lawyers file paperwork to “justify” the bond within 10 days. Ms. James is seeking to clarify whether Knight, which had never posted a similar court bond before aiding Mr. Trump, is financially capable of fulfilling its obligation to pay the $175 million if Mr. Trump defaults.

Even if Knight lacks the funds itself, the company should be able to tap the collateral Mr. Trump pledged.

In an interview this week, Mr. Hankey said that Mr. Trump pledged $175 million in cash as collateral that was being handled by a brokerage firm. Mr. Trump, in the meantime, is able to earn interest on the money.
New York Attorney General Questions Trump’s $175 Million Bond Deal

Don found a way to skirt the law again.

 

[The Duke]

Yeah, a completely egregious fine for a non-crime with no victims or money lost.....
That MAKES NO FUCKING SENSE!!!!!!!!!!!!!

It's Democrats using abusing government power to harass a candidate in an election year. That's what it is.

 

[SeaMajor7]

It's Democrats using abusing government power to harass a candidate in an election year. That's what it is.

These mother fuckers need to be HANGED from light posts and made an example of what happens when you ignore the Constitution of the United States!!!!!!

 

[berg80]

It's Democrats using abusing government power to harass a candidate in an election year. That's what it is.

According to the CFPB, Westlake and Wilshire changed loan terms without telling borrowers, accruing additional interest on the loans. The companies also allegedly misled customers by manipulating caller IDs and posing as employees calling from flower shops or pizzerias to trick borrowers into disclosing their locations or their vehicles’ for repossession purposes. In other cases, Westlake collection agents led borrowers to believe that their vehicles would be released if they paid a certain sum, usually less than the full amount owed. Once those payments were made, Westlake did not release the vehicles, the CFPB found.Westlake and Wilshire neither admitted nor denied the findings but paid $44 million to the customers and a $4.25 million penalty.

KnightBrook Insurance, another Hankey company, was cited by the California Department of Insurance in 2015 for an array of violations in the way it handled customer claims. Over a one-year period, the department reviewed 127 automobile and collateral protection claims handled by KnightBrook and found 45 violations of the state insurance code.

30 bond companies refused Trump but this sleazeball was willing to back him up. Trump dropped a DoJ investigation in to Hankey's company started by the Obama admin.

 

[postman]

Not surprisingly, everything about this bond arrangement stinks. Not the least of which is the company putting up the bond. The guy who owns it being the the kind of slimeball one would think Don would get in financial bed with. Someone who tried to rip off people in the military. Someone who was fined for his illegal debt collection practices.

Grifters gonna grift.

MSNBC covered part of his history. It seems being in trouble with the consumer product protection board, and DOJ, that when Trump took over, he defunded the CPPB, and had DOJ back off.

Apparently we have favor for favor at play here.

 

[okfine]

Yeah, a completely egregious fine for a non-crime with no victims or money lost.....
That MAKES NO FUCKING SENSE!!!!!!!!!!!!!

Only because you don't want it to make FUCKING sense.

 

[Thinker101]

Former President Donald Trump’s effort to challenge his massive civil fraud conviction itself appears to rely on deception, The Daily Beast reported Monday.

Last week, Trump posted a $175 million bond to appeal his $454 million fraud conviction in New York — this, after his lawyers claimed he was unable to find anyone willing to guarantee he would actually pay the full amount. In order to post that bond, the former president turned to Knight Speciality Insurance Company, led by billionaire Don Hankey, described by MSNBC legal analyst Lisa Rubin as the “king of subprime car loans.”

But according to former regulators and other legal experts, the bond is highly irregular. Per a legal filing, it amounts to little more than a promise that Trump himself could pay the full cost of the bond if he ultimately loses his appeal, The Daily Beast reported, noting that such an arrangement effectively negates “the whole point of an insurance company guarantee.”

It does not appear that Knight Specialty Insurance Co. could even cover the bond if it wanted: according to a court filing, the company has financial reserves of just $138 million. And while a related corporate entity claims a financial surplus of $1 billion, the court filing does not explicitly state that it would be liable.

“Based on the financial statement provided, Knight Specialty is providing a bond that is one-third of its total assets and greater than its surplus, which is incomprehensible for a carrier to underwrite,” Maria T. Vullo, a law professor at Fordham University who previously served as New York’s top financial regulator, told the publication.
“Incomprehensible”: Experts say Trump’s $175 million bond makes no sense

Donald Trump Forced to Reveal His Finances to Save His Properties

Documents for Donald Trump's $175 million bond in his New York civil fraud case were rejected by a court because a current financial statement was not included.

On Wednesday, a message on the New York State Supreme Court's electronic filing system showed Trump's "Bond/Undertaking" had been "returned for correction."
Donald Trump forced to reveal his finances to save his properties


Who put up Trump's $175 million bond? A subprime car loan billionaire who has run afoul of regulators
Don Hankey made a fortune building a subprime auto loan empire. Along the way, his companies racked up consumer complaints, regulatory fines and were sued by the DOJ.
https://www.nbcnews.com/business/bu...75-million-bond-subprime-car-loans-rcna146232

Westlake and its subsidiary Wilshire Commercial Capital, the DOJ complaint alleged, illegally repossessed at least 70 vehicles owned by military service members protected under the Servicemembers Civil Relief Act. The companies paid $761,000 to settle the allegations. Five years later, the Justice Department returned with another complaint against Westlake, alleging that it had failed to provide service members with interest rate benefits they were owed under the law. The company paid $225,000 to settle that matter.

“Service members make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said Martin Estrada, U.S. Attorney for the Central District of California, at the time of the settlement.
.........................................................................................................................................
Not surprisingly, everything about this bond arrangement stinks. Not the least of which is the company putting up the bond. The guy who owns it being the the kind of slimeball one would think Don would get in financial bed with. Someone who tried to rip off people in the military. Someone who was fined for his illegal debt collection practices.

Grifters gonna grift.

 

[postman]

At least we know why he was unwilling to release his tax returns.

At the time, Trump supporters were saying his taxes wouldn't reveal anything.

We also found out the IRS, who by law is supposed to audit the president and vice presidents tax returns, didn't do that for the first couple of years.

Surprise, surprise, surprise !!!

 

[berg80]

Now, however, Ms. James is raising questions that could imperil the deal with Knight, which is owned by Don Hankey, a billionaire who made his fortune with subprime loans. And the judge in the case, Arthur F. Engoron, has tentatively scheduled a hearing for April 22 to discuss the bond.

In a court filing on Thursday, Ms. James noted that Knight was not registered to issue appeal bonds in New York, and so she demanded that the company or Mr. Trump’s lawyers file paperwork to “justify” the bond within 10 days. Ms. James is seeking to clarify whether Knight, which had never posted a similar court bond before aiding Mr. Trump, is financially capable of fulfilling its obligation to pay the $175 million if Mr. Trump defaults.

NY made a mistake by initially accepting this bond.