Providing Donald Trump with a $175 million appeal bond when other insurance companies won't do so is business as usual for California financier Don Hankey. As chairman of the Los Angeles-based Hankey Group of Companies, which includes insurance companies, subprime auto finance companies and commercial real estate investment companies, Mr. Hankey made large loans to borrowers that other financial companies would shy away from. It's here.
Mr. Hankey's support for Mr. Trump has brought attention to the little-known billionaire. But in recent years, some of his company's operations have attracted the attention of the U.S. Department of Justice, the Consumer Financial Protection Bureau and the California Department of Insurance. Since 2015, regulators have taken action against Hankey four times, according to public records.
In 2017, for example, the Department of Justice sued Hankey's major subprime auto lender, Westlake Financial, in federal court in California. With a network of 50,000 auto dealerships and his $3 billion in assets under management, his Westlake Financial calls itself “The Yes!” yes! A lender. ”
According to the Justice Department's complaint, Westlake and its Wilshire Commercial Capital subsidiary illegally requisitioned at least 70 vehicles owned by military personnel protected by the Servicemembers Civil Relief Act. The companies paid $761,000 to resolve the claims.
Five years later, the Department of Justice again filed charges against Westlake, accusing it of failing to provide service members with interest rate benefits as required by law. The company paid $225,000 to resolve the issue.
“Our military members make tremendous sacrifices, and we have a responsibility to protect their rights and ensure that they receive the important benefits guaranteed by law,” said Martin, U.S. Attorney for the Central District of California. Estrada said at the time of the settlement. .
Hankey did not immediately respond to a request for comment.
Homemade Hanky is worth $7.4 billion, according to Forbes, and his company manages $18 billion in assets and employs more than 3,000 people, according to the company's website. His seven financial institutions include Westlake, which provided Mr. Trump with appeal bonds, Knight Insurance Group, a commercial real estate investment company, and a company that provides fleet finance to rental car companies. He is also a major shareholder in Axos Financial, a San Diego company whose bank refinanced some of Trump's loans in 2022.
An appellate bond provided to Mr. Trump by Hanky's Knight Specialty Insurance will help Mr. Trump appeal a $464 million judgment that the New York attorney general won against Mr. Trump and his co-defendants in a civil fraud case. You cannot collect the tax while you are there. The judge overseeing the matter found the defendants engaged in “sustained” fraud over several years.
Consumer complaints filed against Westlake with the federal Consumer Financial Protection Bureau say some Hankey customers aren't too happy with the company's practices. Over the past year, records compiled by the agency show that customers have filed complaints against Westlake on an almost daily basis, including wrongful repossession of vehicles, charges for loans customers did not apply for, and failure to provide accurate loan balances and payment history. ing. Credit bureau. Such inaccuracies can harm a consumer's ability to take out other loans, rent a home, or even secure a job.
Complaint records show that Westlake employees repeatedly call customers who have defaulted on their car loans. “They call me 6 times a day, 7 days a week, even after I've made a payment arrangement,” a Florida borrower wrote last month.
Hankey Company is also the subject of regulatory action by the CFPB and the California Department of Insurance. According to a 2015 consent decree filed by the CFPB against Westlake and its affiliate Wilshire, the CFPB found that Westlake and Wilshire used illegal debt collection practices to pressure borrowers. did. Approximately 176,000 customers were affected, according to the consent order.
According to the CFPB, Westlake and Wilshire changed the terms of the loans without telling the borrowers, resulting in additional interest on the loans. The companies also allegedly deceived customers by manipulating caller IDs and pretending to be employees calling from flower shops and pizzerias to trick renters into disclosing their locations or vehicles for the purpose of repossession. There is. In other cases, Westlake repossession agents tricked renters into believing their cars would be released if they paid a certain amount, usually less than the full amount. After these payments were made, Westlake did not release the vehicle, the CFPB found.
Mr. Westlake and Mr. Wilshire neither admitted nor denied the findings, but paid $44 million to their clients and $4.25 million in fines.
Another of Hankey's companies, Nightbrook Insurance, was accused by the California Department of Insurance in 2015 of a series of violations in the way it handled customer claims. Over the course of a year, the department investigated 127 auto and collateral claims handled by Nightbrook and found 45 violations of state insurance laws.
These alleged violations include failing to include fees in the total loss settlements received by customers and failing to “conduct and diligently pursue a thorough, fair and objective investigation of the claim.” . If you fail to pay the remaining certificate fee. Failure to pay reasonable towing charges.
Nightbrook agreed with the state's findings and said it “intends to implement remedial actions in its jurisdiction where applicable,” according to the report.
