Former president Donald Trump recently scored a legal victory when a New York appeals court significantly reduced the appellate bail requirement from $464 million to $175 million in a civil fraud case.
Trump’s legal team had argued that securing a bond for the full amount was nearly impossible, citing the refusal of about 30 companies to take on the risk or accept real estate as collateral.
Despite public declarations of difficulty in obtaining a bond for the initially set $464 million due to refusals from several companies, Trump was reportedly approached by the billionaire Don Hankeywho was willing to pay the total amount using the properties as collateral.
In an interview with ProPublica, Hankey revealed that he proactively reached out to Trump’s team several days before the bond reduction.
The bond was eventually reduced to $175 million, a decision that greatly benefited Trump, before being paid out by Knight Specialty Insurance Company, owned by Hankey.
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The negotiations, which took place while an appeal for a bond reduction was pending, raise questions about the transparency and ethical obligations of Trump’s legal team.
The case against Trump, brought by New York’s attorney general, accused him of fraudulently inflating his net worth to secure favorable loans and other benefits. The result was a $464 million judgment against him and other defendants.
To protect his assets while he appealed, Trump needed to post bond, a task made difficult by the large initial amount and the refusal of many companies to participate.
However, Hankey was prepared to offer the full bail amount despite the complexities before the appeals court reduced it.
The saga continues as the New York attorney general’s office seeks confirmation of Hankey’s company’s financial ability to service the $175 million bond.
Legal experts suggest that if Trump’s lawyers had known about Hankey’s offer and not disclosed it to the court, they may have violated New York’s rules of professional conduct.
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