Los Angeles, California – California financier Don Hankey’s decision to provide Donald Trump with a $175 million appeal bond is not out of character for a man whose business empire includes an insurer, a subprime auto lender, and a commercial real estate investment firm. Hankey, the chairman of the Hankey Group of Companies, has made a fortune by serving borrowers that other financial institutions often overlook.
Although Hankey’s assistance to Trump has thrust him into the limelight, some of his companies have come under scrutiny from regulatory bodies. Public records indicate that since 2015, regulators have taken action against Hankey’s companies on four occasions. For instance, in 2017, the Department of Justice filed a complaint against Westlake Financial, Hankey’s subprime auto lender, for illegally repossessing vehicles owned by military service members protected under the Servicemembers Civil Relief Act.
Despite regulatory challenges, Hankey’s financial prowess cannot be denied. Forbes estimates his net worth at $7.4 billion, with his companies controlling $18 billion in assets and employing over 3,000 individuals. His financial entities include Westlake, Knight Insurance Group, a commercial real estate investment firm, and a provider of fleet financing for rental car companies. Hankey is also a major shareholder in Axos Financial, a San Diego-based bank.
One of Hankey’s companies, Knight Specialty Insurance, provided Trump with a crucial appeal bond, preventing the New York Attorney General from collecting on a $464 million judgment in a civil fraud case. The judge in the case found that Trump and his co-defendants had engaged in “persistent” fraud over an extended period.
Customer complaints lodged against Westlake with the federal Consumer Financial Protection Bureau paint a troubling picture of the company’s practices. Allegations range from improperly repossessed vehicles to misleading customers about loan terms and balances. Such actions can have severe repercussions on consumers’ financial well-being, affecting their ability to secure loans, housing, or employment.
In response to previous violations, Westlake and its affiliate Wilshire agreed to pay $44 million to affected customers and a $4.25 million penalty. KnightBrook Insurance, another of Hankey’s companies, faced citations from the California Department of Insurance for various violations in handling customer claims, further highlighting regulatory concerns surrounding Hankey’s enterprises.
Despite these challenges, Hankey’s business acumen and willingness to take risks have established him as a prominent figure in the financial world. His ability to navigate complex financial landscapes and provide critical support to high-profile clients like Trump underscores his enduring influence in the industry.