Former President Donald Trump recently achieved a legal victory when a New York appellate court significantly reduced his required appeal bond 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 refusals from approximately 30 firms to either take the risk or accept real estate as collateral.
Despite public claims of difficulty securing a bond for the mandated initially $464 million due to rejections from multiple firms, Trump had reportedly been approached by billionaire Don Hankey, who was willing to post the total amount using real estate as collateral.
In an interview with ProPublica, Hankey revealed that he had proactively contacted Trump's team several days before the bond reduction.
The bond was eventually reduced to $175 million, a decision significantly benefiting Trump, before being posted by Knight Specialty Insurance Company, which is owned by Hankey.
The negotiations, which took place while the appeal for a bond reduction was pending, raise questions about Trump's legal team's transparency and ethical obligations.
The case against Trump, initiated by the New York 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 appealing, Trump needed to post a bond, a task made challenging by the initial high amount and the refusal of many firms to participate.
However, Hankey was prepared to offer the total bond amount despite the complexities before the appellate court reduced it.
The saga continues as the New York Attorney General's office seeks confirmation of Hankey's company's financial capacity to fulfill the $175 million bond.
Legal experts suggest that if Trump's lawyers knew Hankey's offer and did not notify the court, they might have breached New York's rules of professional conduct.
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This content was partially produced with the help of AI tools and was reviewed and published by Business Insider editors.
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