Trump’s Civil Fraud Bond Backer Is Even Shadier Than We Thought
The company underwriting Donald Trump’s $175 million bond is owned by a man whose seedy business practices were flagged by Trump’s own administration.Billionaire Don Hankey, also known as the “king of subprime car loans,” was sued by the Justice Department just nine months into Trump’s presidency, after it was discovered that another one of Hankey’s companies, Westlake Services, had illegally repossessed 70 cars belonging to service members, violating the Servicemembers Civil Relief Act, The Daily Beast reported Wednesday.Westlake settled with the Trump administration in just 10 days, according to a settlement agreement, with the company agreeing to pay $700,000 in damages to affected members and getting fined more than $60,000 by the federal government.“Westlake and Wilshire specifically target servicemembers, including junior enlisted servicemembers, as customers for their subprime and near-subprime loan products,” prosecutors wrote.But it wasn’t the first time Hankey’s companies had been penalized by the feds. Two years before the alleged misconduct, Westlake and one of its subsidiaries, Wilshire, were hit by the Consumer Financial Protection Bureau for “illegal debt collection tactics,” according to the Beast. That resulted in an even larger penalty, including more than $44 million in restitution payouts.That’s all a part of the game to Hankey, who carved out his $7.4 billion fortune through those kinds of predatory practices, targeting low-income customers with high-interest auto loans.Hankey’s Knight Specialty Insurance Company is the group that underwrote Trump’s bond for his civil fraud trial, but it’s not Hankey’s only investment in Trump’s financial situation. Hankey is also believed to be the largest shareholder in Axos Financial, according to MSNBC’s Lisa Rubin, a financial institution that in 2022 refinanced more than $50 million of Trump’s loans on Trump Tower and Trump National Doral Miami, according to documents filed with the Office of Government Ethics.Hankey told Forbes that Knight initiated the deal with the criminally charged GOP presidential nominee, and explained that Trump had used both cash and investment-grade bonds to secure the money with his insurance company. Hankey added that he had never met Trump but had been a supporter of his previous campaigns.“This is what we do at Knight insurance,” Hankey told Forbes on Monday. “I’d never met Donald Trump. I’d never talked to him on the phone. I heard that he needed a loan or a bond, and this is what we do. So, we reached out, and he responded.”
The company underwriting Donald Trump’s $175 million bond is owned by a man whose seedy business practices were flagged by Trump’s own administration.
Billionaire Don Hankey, also known as the “king of subprime car loans,” was sued by the Justice Department just nine months into Trump’s presidency, after it was discovered that another one of Hankey’s companies, Westlake Services, had illegally repossessed 70 cars belonging to service members, violating the Servicemembers Civil Relief Act, The Daily Beast reported Wednesday.
Westlake settled with the Trump administration in just 10 days, according to a settlement agreement, with the company agreeing to pay $700,000 in damages to affected members and getting fined more than $60,000 by the federal government.
“Westlake and Wilshire specifically target servicemembers, including junior enlisted servicemembers, as customers for their subprime and near-subprime loan products,” prosecutors wrote.
But it wasn’t the first time Hankey’s companies had been penalized by the feds. Two years before the alleged misconduct, Westlake and one of its subsidiaries, Wilshire, were hit by the Consumer Financial Protection Bureau for “illegal debt collection tactics,” according to the Beast. That resulted in an even larger penalty, including more than $44 million in restitution payouts.
That’s all a part of the game to Hankey, who carved out his $7.4 billion fortune through those kinds of predatory practices, targeting low-income customers with high-interest auto loans.
Hankey’s Knight Specialty Insurance Company is the group that underwrote Trump’s bond for his civil fraud trial, but it’s not Hankey’s only investment in Trump’s financial situation. Hankey is also believed to be the largest shareholder in Axos Financial, according to MSNBC’s Lisa Rubin, a financial institution that in 2022 refinanced more than $50 million of Trump’s loans on Trump Tower and Trump National Doral Miami, according to documents filed with the Office of Government Ethics.
Hankey told Forbes that Knight initiated the deal with the criminally charged GOP presidential nominee, and explained that Trump had used both cash and investment-grade bonds to secure the money with his insurance company. Hankey added that he had never met Trump but had been a supporter of his previous campaigns.
“This is what we do at Knight insurance,” Hankey told Forbes on Monday. “I’d never met Donald Trump. I’d never talked to him on the phone. I heard that he needed a loan or a bond, and this is what we do. So, we reached out, and he responded.”
