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

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.
https://finance.yahoo.com/news/incomprehensible-experts-trump-175-million-153908921.html

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."
https://www.newsweek.com/donald-trump-forced-reveal-his-finances-save-his-properties-1886609


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.
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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.

 

The real experts are the one telling you there should never have been a civil fraud trial against Trump to begin with and that the fine is out of all proportion to the harm done which was zero.

 

Yes, it appears, from the deep dive the media is doing, that this bond is likely a fraud being perpetrated on the courts simply to buy Trump time and stave off justice. Regardless, it's going to be a complicated unravel for the courts and the DA. It's, on the surface, a three card monty fraud to buy time.

 

Democrats sure went fast from "respect judges decisions you stupid republicans" to "the us system is so corrupt and they are helping trump win the presidency" LOL. Only took a decision they didn't agree with lmao.

 

And this person was under DOJ (?) investigation in the Obama Admin but the case disappeared under the Trump Admin. When the zone get overloaded, things slip through the "cracks"....

 

So you're ok with someone, for years, overstating values of their properties to get better loan terms but then undervaluing those same properties when it came time to pay taxes on those properties? That is what is known as fraud. Apparently you're cool with it.

 

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.

 

Imagine that. When Trump was negotiating the deal do you suppose he said, "remember when I made that DoJ investigation go away?"

 

Interesting to note your confession to being as ignorant of how property taxes and real estate prices are related as Onager

 

That wasn't what I was talking about but nice try deflecting. Carry on

 

There is definitely a two-tier system in which billionaires get all the breaks.... Anybody else would be in prison by now. Or, at least, already on trial.

This episode might move the justice system to change their approach. But it will only happen after it has already benefitted the Orange Criminal.

 

But that was the entire premise upon which James and Onager brought the case...

 

Nope.

 

Three questions jump out immediately here...

Are you operating under the belief that banks do not do their own appraisal on property used as collateral?

Are you operating under the belief that individuals determine taxable value of their properties?

Are you operating under the belief that taxable value as calculated by local government equates to actual value?

 

I take it you have not read the linked article because this is about the viability of the bond, the bond agreement and nada to do with the judge or any judge for that matter. Focus....

Well yeah, but this bond deserves serious scrutiny since I believe the actual agreement says Trump, himself not the bond company, is responsible if the initial judgement stands. It's seriously wonkie......as I said, appears to be three card Monty being played on the court.

 

Here we go :

Democrats sure went fast from "respect legal decisions you stupid republicans" to "the us system is so corrupt and they are helping trump win the presidency" LOL. Only took a decision they didn't agree with lmao.


Now we agree 100% accurate. Nice to have some common ground.

 

Seems more like a comprehension issue of denial into deflection into topic derailment. Don't like the thread, throw up chaffe....

 

I’m operating under the belief that he claimed, for example, his penthouse was almost 3x larger than it is, on financial statements to make deals and secure loans. But of course when it came time to pay his taxes he undervalued his properties. That is how it came to the attention of James.

 

But you said he undervalued properties when it came time to pay taxes. Does this mean you think that individuals give a tax value to the local government in order to determine taxable value? If that is your belief, it is wrong.

You mention that he overvalued properties to banks. Does this mean you believe that banks do not do their own appraisal to determine value? If that is your belief, it is wrong.

Do banks use your numbers when taking out a mortgage or do they do their own appraisal?

 

Is that how you describe your response? I wouldn't go that far.

 

What I think doesn't matter in regards to what Trump did. ¯\_(ツ)_/¯

 

Well, it would appear that your post has devolved to the lowest denominator, I'd say that was simply "too easy". The fraudster Agent Oranges will be pleased.

 

This IS in regard to what Trump did. You seem to be operating under several false assumptions.

You said HE undervalued properties when it came time to pay taxes. Does this mean you think that individuals give a tax value to the local government in order to determine taxable value? If that is your belief, it is wrong.

You mention that HE overvalued properties to banks. Does this mean you believe that banks do not do their own appraisal to determine value? If that is your belief, it is wrong.

Do banks use your numbers when taking out a mortgage or do they do their own appraisal? Why would you think this would be different for Trump organization?

Do banks use your square footage numbers? Or do they use the numbers provided by local government? Why do you think this would be different for Trump organization?

 

That sounded better when you thought of it, didn't it?

 

Yes it is.