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Facebook Twitter Reddit Email 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.” Related Trump lawyers claimed no one would give him bond. Then he got a lifeline, but they didn't tell court 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. Indeed, experts who reviewed the bond filing said it appears to state that it is "Donald J. Trump" who "shall pay" any bond, an arrangement that is far from normal. We need your help to stay independent Subscribe today to support Salon's progressive journalism "This is not common," N. Alex Hanley, CEO of the civil bond company Jurisco, told the outlet. New York Attorney General Letitia James also has questions about the bond and its issuer’s ability to pay it, stating in a legal filing last week that she “takes exception to the sufficiency of the surety to the undertaking.” A hearing on Trump’s bond and the potential issues with it is scheduled for April 22. Hankey, for his part, in a recent interview with Reuters insisted that he had accepted collateral for the $175 million bond. But he added that he was not sure exactly what the source of it was. "I don't know if it came from
Donald Trump or from Donald Trump and supporters," he said, adding that he now regrets only charging a Trump a "low fee" for his services. Read more about Trump's bond NY AG Letitia James gives company that guaranteed Trump’s bond 10 days to “justify the surety” “Sounds familiar”: Expert flags details on “king of subprime car loans” who helped Trump post bond "I find it strange": Legal scholar baffled at Trump's "stunningly embarrassing" fraud bond filing By Charles Davis Charles Davis is a writer and producer in
Los Angeles whose work has been published by outlets including Al Jazeera, The New Inquiry and Vice. You can read more of his writing here . MORE FROM Charles Davis Related Topics ------------------------------------------ Don Hankey Donald Trump Letitia James Politics Related Articles Advertisement: