Specialty insurer gives Trump his fraud bond
Specialty insurer gives Trump his fraud bond | Insurance Business America
Insurance News
Specialty insurer gives Trump his fraud bond
Billionaire boss is known for high interest-high risk auto loans
Insurance News
By
Kenneth Araullo
Thanks to a specialty insurer, Donald Trump has secured a $175 million bond in connection with his ongoing civil fraud case in New York, effectively pausing the collection efforts against him for the $454 million judgment awarded.
Knight Specialty Insurance, operating under the broader Knight Insurance Group, is the underwriter for Trump’s appellate bond.
Don Hankey, the billionaire chairman of the Knight Insurance Group, communicated to The Associated Press that a combination of cash and bonds served as collateral for the bond. Hankey is known for his ventures in high-risk, high-interest loans to auto buyers with less-than-perfect credit.
“This is what we do at Knight Insurance, and we’re happy to do this for anyone who needs a bond,” Hankey said, also explaining that he has had no personal interactions with Trump.
Established in 2013, Knight Specialty Insurance is a B++ (AM Best) rated primary insurer. Its parent group has $23.4 billion in assets worldwide and is part of the Hankey Group of Companies.
Hankey, meanwhile, is currently ranked 128th on the Forbes 400 and is number 317 on the world’s billionaires list.
Trump secures bond – what’s next?
The bond prevents the state from seizing Trump’s assets during his appeal process, a development confirmed through recent court documents.
Following a decision by a New York appellate court, Trump was required to post the bond within 10 days after the court agreed to reduce the bond amount necessary to halt enforcement efforts against him.
The bond functions as a financial guarantee, ensuring payment of the full judgment amount, along with accruing interest, should the appellate court uphold the original verdict. Conversely, should Trump prevail in his appeal, he will be exempt from paying the state and will retrieve the funds used for the bond.
Trump’s legal team, including lawyer Alina Habba, stated: “As promised, President Trump has posted bond. He looks forward to vindicating his rights on appeal and overturning this unjust verdict.”
Prior to the appellate court’s intervention, which reduced the required bond amount, New York Attorney General Letitia James had been preparing to begin collection actions against Trump, potentially targeting his significant properties.
This legal battle stems from a February 16 decision by a judge finding that Trump misrepresented his net worth in financial statements used for securing loans and insurance policies, claims that Trump has denied, arguing that his financial statements undervalued his assets and contained disclaimers not to be taken at face value by lenders or insurers.
The state’s Appellate Division is set to hear arguments in September, timing that places it within the critical weeks of the presidential race. Under New York law, appealing a judgment does not automatically halt enforcement unless a bond is posted, offering a temporary stay against collection actions, a relief Trump has now secured.
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