(Rightallegiance.com) – In a move that exemplifies his reputation for embracing financial ventures where others may tread cautiously, California-based financier Don Hankey has stepped into the limelight by providing a crucial $175 million appeal bond for Donald Trump, a service seemingly overlooked by other insurers.
Hankey, the head of the Hankey Group of Companies, a conglomerate with interests in insurance, subprime auto lending, and commercial real estate, has built his wealth on a foundation of extending credit to those often bypassed by traditional financial institutions.
This latest engagement with Trump has not only cast a spotlight on Hankey but has also drawn renewed attention to his business empire, which has faced scrutiny from various regulatory bodies over the years. Records indicate that since 2015, the U.S. Justice Department, the Consumer Financial Protection Bureau (CFPB), and the California Department of Insurance have taken actions against Hankey’s ventures on multiple occasions.
One notable incident involved Westlake Financial, a significant arm of Hankey’s operations known in the auto lending sector as “The Yes! Yes! Lender,” due to its extensive network of 50,000 car dealerships and management of assets totaling $3 billion. The Department of Justice took Westlake to task in 2017, alleging the illegal repossession of vehicles from military service members, a violation of the protections afforded by the Servicemembers Civil Relief Act. Westlake settled the dispute by paying $761,000. A subsequent complaint by the Justice Department in later years, alleging Westlake’s failure to offer due interest rate benefits to service members, led to another settlement of $225,000.
U.S. Attorney Martin Estrada underscored the importance of safeguarding the rights of military personnel, stating, “Service members make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law.”
Forbes lists Hankey’s net worth at $7.4 billion, a testament to the scale of his business operations, which control assets worth $23 billion and employ over 3,000 individuals. His financial empire spans several entities, including the insurer Knight Insurance Group, which played a pivotal role in issuing the appeal bond for Trump, thereby stalling the New York Attorney General’s efforts to collect on a $464 million judgment in a civil fraud case during the appeal process.
However, the practices of Hankey’s companies, particularly Westlake, have stirred discontent among consumers, with a plethora of complaints lodged with the CFPB over issues ranging from wrongful vehicle repossessions to misleading loan term modifications. These grievances highlight the challenges consumers face, potentially affecting their creditworthiness and broader financial stability.
Moreover, regulatory actions against Hankey’s enterprises, such as the CFPB’s 2015 consent decree against Westlake and Wilshire for pressuring borrowers through unlawful debt collection tactics, and KnightBrook Insurance’s run-ins with the California Department of Insurance over claim handling violations, underscore the complexities and controversies surrounding Hankey’s business dealings.
Despite the controversies, Hankey’s readiness to support Trump when other financiers hesitated reflects a consistent theme in his career: a willingness to venture where others may not, driven by a business model that thrives on high-risk, high-reward propositions.