Don Hankey, a California-based financier known for his willingness to take financial risks that others avoid, recently gained attention for providing a $175 million appeal bond for Donald Trump, a move other insurers were reluctant to make.
As the head of the Hankey Group, which includes companies ranging from insurance to subprime lending, Hankey has built a lucrative empire by serving markets often overlooked by traditional finance.
However, this involvement with Trump shines a light on Hankey’s enterprises, some of which have faced scrutiny from federal and state regulators over the years. Records indicate that since 2015, Hankey’s businesses have encountered regulatory actions four times, involving allegations ranging from illegal vehicle repossession to failing to uphold service members’ rights.
Don Hankey (Credits: Bloomberg)
For instance, Westlake Financial, Hankey’s prominent subprime auto lender, settled with the Department of Justice in 2017 for $761,000 over accusations of unlawfully seizing vehicles from protected military personnel. Another lawsuit in 2022 led to a $225,000 settlement for not offering service members owed interest rate benefits.
Hankey’s financial influence extends beyond these settlements. With a net worth estimated at $7.4 billion, his ventures control substantial assets and are heavily involved in industries from real estate to banking, including a notable stake in Axos Financial.
Despite the legal entanglements, Hankey’s role in providing Trump’s appeal bond has prevented immediate collection on a $464 million fraud judgment against the former president, highlighting the complex interplay between finance, legal challenges, and political figures.
Billionaire Trump supporter (Credits: New York Post)
Yet consumer complaints against Westlake paint a picture of aggressive and sometimes misleading debt collection practices that impact customers’ financial health and peace of mind. These allegations have prompted investigations and settlements, reflecting broader concerns about the operations under Hankey’s umbrella.
Regulatory actions against Hankey’s companies, including a notable case with KnightBrook Insurance cited for multiple violations, underscore ongoing challenges in aligning business practices with regulatory expectations and consumer protection standards.
Despite these challenges, Hankey’s financial empire continues to exert influence, underscored by its pivotal role in high-profile legal battles and the broader economic landscape.
The scrutiny of Hankey’s operations and their impact on consumers and service members reveals the complications of finance, regulation, and public accountability.
