Los Angeles billionaire Don Hankey, known for his wealth amassed in subprime auto loans, has made a notable move in the ongoing legal battle involving former President Donald J. Trump.
Amid Trump's civil fraud case in New York, entailing a substantial $454 million bond, Don Hankey's firm, Knight Specialty Insurance, has issued a $175 million bond to safeguard Trump's assets throughout the appeal proceedings.
Don Hankey: Helping Trump Was 'a Good Business Deal'
The move by Don Hankey's company was crucial in preventing potential asset seizures or bankruptcy for Trump, who has been embroiled in legal battles over allegations of fraud related to inflating his assets to secure loans at better rates.
Hankey, 80, clarified that this decision was a "good business deal, not a political statement," emphasizing his business-focused approach to the transaction.
In fact, Trump was charged a "modest fee," according to the billionaire's statement to The Washington Post.
Trump's legal team encountered challenges in obtaining the initial $464 million bond, as 30 insurers reportedly declined to provide the necessary funds.
However, a state appeals court intervened, reducing the bond requirement to $175 million, which Trump has pledged to fulfill within 10 days.
Hankey said providing the bond for Trump was an easy decision. He said he doesn't mind how it's invested as long as it can be liquidated into cash if needed, the New York Times reported.
"I looked at it as business, No. 1," Hankey said in an interview. "[A]nd No. 2, I was happy to help someone."
Hankey admitted to Bloomberg News that he had cast his vote for Trump in the past. However, he clarified that his support for the real estate developer was not a factor for him to extend the bond.
The conglomerate stressed that this transaction was solely a business deal in line with their standard practices.
According to a report from Axios, Hankey stated on Tuesday that he had a conversation with Eric Trump, one of former President Trump's sons, who expressed gratitude towards him.
However, Hankey clarified that he had not yet spoken directly with the former president himself.
Who Is Don Hankey?
Don Hankey, with a net worth estimated at $7.4 billion according to Forbes, is the chairman of the Hankey Group and Knight Specialty Insurance, which operates in the high-interest loan sector. As of writing, he is #360 in the world's billionaires list.
His companies have faced scrutiny in the past, including fines for deceptive business practices related to loan collections.
However, Hankey defended his businesses, stating that they have corrected past mistakes and aim to minimize errors despite serving a vast customer base.
He is widely recognized as the "little-known king of subprime car loans," overseeing the impressive $22.5 billion assets of the Hankey Group, a Los Angeles-based empire in the auto services sector.
One of Hankey's notable ventures is Westlake Financial Services, a renowned entity that collaborates with over 30,000 car dealerships across all 50 states.
Westlake Financial Services specializes in providing car loans to individuals with poor or no credit.
The Hankey Group, under Hankey's leadership, encompasses diverse sectors such as real estate, a Toyota dealership, auto insurance, rental car services, and dealer software companies.
Hankey's journey to success is a testament to his resilience and entrepreneurial spirit. Starting as a teenager working as a lot boy, washing and polishing cars, he later transitioned to become a salesman at his father's Los Angeles Ford dealership.
Hankey finished his undergraduate studies and post-graduate work at the University of Southern California in 1965.
In 1972, Hankey took a pivotal step by acquiring control of the dealership and venturing into extending loans to individuals with poor credit.
This bold move marked the beginning of his ascent in the business world, with his lending business eventually becoming his most significant asset.
Hankey, according to Forbes, is a self-made billionaire, who resides in Malibu, California. He maintains a strong presence in the business community and remains actively involved in various ventures and initiatives.
His achievements, coupled with his ongoing contributions to the business landscape, solidify his status as a prominent figure in the finance and entrepreneurship industry.
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