In settling his $175 million fraud bond, Donald Trump found a lifeline through Knight Specialty Insurance Company just before the deadline of his New York fraud case.
Following a grueling 11-week jury trial, Trump and his Trump Organization cohorts were found culpable for inflating company asset values to gain favorable terms from financial entities and insurers between 2011 and 2021, incurring hefty penalties and interest.
Knight Insurance’s owner, Don Hankey, expressed satisfaction in assisting the former president as “a supporter.”
“This is what we do at Knight Insurance, and we’re happy to be able to accommodate the ex-president in this situation,” Mr Hankey told ABC after the company’s involvement in the bond was revealed. “I happen to be a supporter also,” he added.
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Hankey, dubbed “the king of subprime car loans,” revealed that his company had been involved in negotiations about paying the full amount at an earlier stage and that Trump had contributed cash collateral, albeit a relatively low amount.
“It was a relatively low number,” he said about Trump’s collateral.
This revelation raised questions about Trump’s financial standing, especially given the challenges his legal team encountered in securing the necessary $464 million bond for the appeal.
Despite doubts about Trump’s ability to meet the full amount, his posting of the $175 million bond on Easter Monday thwarted New York Attorney General Letitia James’s efforts to seize his assets.
However, uncertainties loom over the outcome of Trump’s appeal, and failure to pay the full amount could lead to asset forfeiture, including properties like Trump Tower and 40 Wall Street. James had already initiated steps towards repossession in anticipation of Trump’s inability to secure the bond.
