How does one get a 175 million fake bail bond? Like, the magnitude of scale alone is insane, but they tried to fake it?!
The filing notes that the surety Trump used to obtain the bond, Knight Specialty Insurance Company, is “a small insurer that is not authorized to write business in New York and thus not regulated by the state’s insurance department
I can see why they are concerned. Nearly 200 million is no joke. This would wreck a smaller company if 200 million was needed immediately. And Trump doesn’t exactly owe this company his alliance.
Even though “Hank” the owner of the company, is a billionaire in CA from car loans and rental properties. Most of his assets are tied to properties that will not be easy to sell on the spot (Eviction usually takes at least a month), or on car loans that take time to accumulate in value.
On a non logical note: He isn’t exactly the most trustworthy either…
In October 2015, Westlake Financial (Owned by Hank) was ordered by the Consumer Financial Protection Bureau to provide $44.1 million dollars in consumer relief for engaging in illegal debt collection practices. Westlake Financial and its affiliate Wilshire Consumer Credit deceived borrowers into thinking they were being called by repossession companies, other third parties, or even the borrowers’ own family and friends. The Bureau also found that the companies unlawfully disclosed information about borrowers’ debts to employers, family, and friends.
So lying to get what they want isn’t off the table in this case either.
It’s not the only factor. They’re also additionally known to “overinsure” collateral, meaning they most likely don’t have enough cash on hand to pay out the full sum (or if they do, it would hurt their ability to pay their other liabilities, creating the equivalent of a “bank run” risk)
How does one get a 175 million fake bail bond? Like, the magnitude of scale alone is insane, but they tried to fake it?!
I can see why they are concerned. Nearly 200 million is no joke. This would wreck a smaller company if 200 million was needed immediately. And Trump doesn’t exactly owe this company his alliance.
Even though “Hank” the owner of the company, is a billionaire in CA from car loans and rental properties. Most of his assets are tied to properties that will not be easy to sell on the spot (Eviction usually takes at least a month), or on car loans that take time to accumulate in value.
On a non logical note: He isn’t exactly the most trustworthy either…
So lying to get what they want isn’t off the table in this case either.
I think the deal is that the parent company of the bond issuer is in the Cayman Islands, so the court would likely be unable to collect payment.
https://finance.yahoo.com/news/trump-bond-cayman-connection-stinks-084524447.html
We have the best offshore holding companies! The best!
It’s not the only factor. They’re also additionally known to “overinsure” collateral, meaning they most likely don’t have enough cash on hand to pay out the full sum (or if they do, it would hurt their ability to pay their other liabilities, creating the equivalent of a “bank run” risk)