Legal AF by MeidasTouch - Wow! Court Suddenly REJECTS Trump’s Bond

Episode Date: April 3, 2024

The COURT HAS REJECTED Trump’s purported $175 million bond to stop collection of the $465 million dollar fraud judgment because the unknown bonding company backed by the “King of the Subprime Auto Loan” didn’t provide its balance sheet to show that its solvent and made other rookie mistakes in the form of the bond. Does that mean that the NY AG can get back to collecting the judgment against Trump? Michael Popok has the answers including why Trump used this bonding company. Sign up at https://MoinkBox.com/LEGALAF and get FREE BACON for a YEAR Visit https://meidastouch.com for more! Join us on Patreon: patreon.com/legalaf Remember to subscribe to ALL the MeidasTouch Network Podcasts: MeidasTouch: https://www.meidastouch.com/tag/meidastouch-podcast Legal AF: https://www.meidastouch.com/tag/legal-af The PoliticsGirl Podcast: https://www.meidastouch.com/tag/the-politicsgirl-podcast The Influence Continuum: https://www.meidastouch.com/tag/the-influence-continuum-with-dr-steven-hassan Mea Culpa with Michael Cohen: https://www.meidastouch.com/tag/mea-culpa-with-michael-cohen The Weekend Show: https://www.meidastouch.com/tag/the-weekend-show Burn the Boats: https://www.meidastouch.com/tag/burn-the-boats Majority 54: https://www.meidastouch.com/tag/majority-54 Political Beatdown: https://www.meidastouch.com/tag/political-beatdown Lights On with Jessica Denson: https://www.meidastouch.com/tag/lights-on-with-jessica-denson On Democracy with FP Wellman: https://www.meidastouch.com/tag/on-democracy-with-fpwellman Uncovered: https://www.meidastouch.com/tag/maga-uncovered Learn more about your ad choices. Visit megaphone.fm/adchoices

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to using a subprime auto loan lender who only lends to people with bad or no credit as your bonding company to post your $175 million bond in the state of New York when he probably never has posted a bond in the state of New York before, well, he may screw up. And the clerk's office for the state Supreme Court that takes in the bond may reject it and tell you to do it again and correct errors in the form of the bond that's been posted and also to post your financials which are required in the state of New York to

go along with your bond. Both of those things are now required to be reposted by the the bonding company that has been used by Donald Trump here. It's been rejected by the court clerk. They're allowed to correct it. They're required to correct it in a reasonable amount of time. Let me just answer a couple of questions before we get to the heart of this hot take. Does that mean now that since the bond was rejected that the attorney general who's holding on behalf of the people of the state of New York the $465 million judgment and she can restart her collection efforts? No.

We don't blow smoke or sunshine here. I'm just telling you the straight scoop. She's not going to be able, Tisha James is not going to be able to restart collection efforts, but this is not nothing. This is not just ministerial or clerical. It has to be corrected. Now, Will the bonding company owned by Don Henke, not making this up. I know a lot of people thought I'm talking about a long lost episode of The Simpsons, but Mr. Henke put up the bond. He didn't really have to go through underwriting, since he owns and controls the company that put up the bond. He's a multi-billionaire, a real multi-billionaire,

probably worth about $8 or $9 billion, according to Fortune magazine. And Don Henke owns a company out of California that made its fortune giving car loans to people with no or low credit. That's why it's subprime. Usually means that the interest rate is hovering around the highest rate allowed by law in that state at the usurious level or close

to it. That's how he makes his money. And he also makes his money by lending to deadbeats and people who don't have good credit and who have fraudulent financial statements like Donald Trump. But I don't think that that's the heart of what his company that he owns, that he used for the bond itself. I don't think that's the heart of what they do. I don't think that is their bread and butter. I don't think posting bonds in the state of New York against major judgments is what they do. So they got certain fundamentals wrong in the judgment, which any bonding company would be. I'm not saying nobody makes mistakes, but these are sort of fundamental mistakes that should have easily been corrected.

Let me put up on the screen here what the bounce back from the automated system, and I love my automated system. I practice a lot in New York. The automated system always ends with, thank you and have a great day. We're rejecting your $175 million bond, but thank you and have a great day. There's two things that have to be, that aren't there. This is when a human being in the clerk's office actually checks it against the requirements of the civil rules. We call them the CPLR in New York. And it says you have to include a current financial statement and

power of attorney. And the financial statement, I know what they're referring to here. We got excited on the Midas Touch Network. I said, oh, Donald Trump's going to have to put up his personal financial statement. It's not that. It's the bonding company. It's not enough for somebody to file a piece of paper that says, I'm good for it, 175 million.

Here's my bond. You have to put up your, like show your finances. So ironically, Donald Trump doesn't like to show his finances, or when he shows his finances, he shows fraudulent ones. But the bonding company that's authorized in the state of New York to post the bond has to show its finances to make sure it's solvent. It's not illiquid. It has the money. It's good for the IOU that this piece of paper stands for. So they've got to file, I think that's what the reference to current financial statement means. It's the current financial statement for the company controlled by Mr. Henke and a power of attorney. Power of attorney is a legal document. It is a concept in the law,

we'll do it one day on a Patreon, where somebody gives the other person the ability to act on their behalf as their proxy. Doesn't have to be an attorney, even though the name attorney is in the concept. You can give many people, I could give my wife the power of attorney to make decisions about my medical health or my mother's medical health or something like that. So the power of attorney is showing that the person who signed the bond, in this case the president, I think his name is Amit Shah of the company, is authorized to do that on behalf of the company as a duly authorized representative. I believe that is the power of attorney that is also required.

And also the attorney in fact, which is where the president signed, which is the entity that is recognized as binding the bonding company to the undertaking that's being proposed, didn't properly sign in the right place that the name of the attorney, in fact, under the signature line has to be listed. They kind of left that out too. This is bonds 101, just to be clear.

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required bonds to be posted. The fundamentals of the template used are rarely challenged. Bonding companies are like the ones you've heard of, not the ones where you're scraping the bottom of the barrel and you have to go hat in hand, as Donald Trump does, as a financially compromised individual who's put himself up for bid to the highest bidder, foreign or domestic, and anybody that invests in him, whether it's through the stock market where you can actually own a piece of a presidential candidate whose stock ticker is DJT on the NASDAQ. Attention, foreign investors want to influence a potential foreign president's

next set of foreign policy, buy a lot of his stock and he will be indebted to you. Be indebted to Mr. Hanke for coming in here and bailing out Donald Trump. This is what happens when a person, this is why you don't generally elect a bankrupt or somebody who has tremendous, who's upside down with their credit or upside down with their showing financial responsibility about their debts and gets sued all the time or has tremendous liabilities against assets because it's a national security risk. They could be compromised. They could be subject to bribes.

People who run their financial affairs appropriately, not named Donald Trump, are not easily infiltrated by our enemies or bribed or made foreign assets because they don't have exposure. They don't have an Achilles heel. Donald Trump has two Achilles heels. Besides his bone spurs that kept him out of the army, he has Achilles' heels. He is financially compromised, and ethically compromised in challenge we already know. And so people are gonna try to get a piece of Donald Trump to try to influence policy,

by not just making straight donations to his campaign, but by bailing him out of his financial predicament and all of these judgments against him and attorney's fees against him and rebonding requirements against him. And everybody that's giving him something at a particular moment wants something in return. This is a quid pro quo. We just don't know the pro quo yet. We only know the quid. We only know the amount of money that's being put up or offered. Chubb Insurance put up the money for the $ million or ninety-one million dollar bond for Donald Trump in the E. Gene Carroll case

requiring all cash dollar for dollar to secure it. Hanky, Mr. Hanky has provided through his bonding company the money for the hundred and seventy-five million that the New York Appellate Division First Department is requiring for that bond. I think, and I'll just pause it this year, pardon me, I think the reason he went to Hanke is that Hanke required less cash as a collateral for the bond, less cash for collateral for the bond. Now, I know Donald Trump's been on the air and he says, I paid a cash, I posted cash, but that makes no sense.

Because if you just were going to post cash, $175 million, rather than pay the exorbitant fee that you had to pay to the bonding company, especially a subprime lender bonding company, I'm sure the fee was astronomical, rather than pay that, you just skip a step. You take the $175 million and you deposit it into the court registry and get an interest rate on return and not pay the fee. So why didn't he do that? Because I think Mr. Henke is taking something other than cash in return for collateralizing

the bond. For instance, Henke owns a lot of property. He owns a lot of real estate. He sort of understands real estate. Bonding companies don't like, and insurance companies especially, who own bonding companies don't like real estate. But Mr. Hanke is not an insurance company, right? He made his money subprime auto loan lending.

Different cat, different type of guy, different Mr. King of the subprime loan. So he doesn't have to answer to a board. He's not a public company. He doesn't have to answer to a insurance company or to underwriters or anything. He just, okay, give him $175 million. And in return, he could have taken things like rent roll, rent paid to Donald Trump on properties that he owns, a stream of income other than cash right now on the barrel head dollar for dollar for the $175. That's why I think he went to Mr. Hankey. Mr. Hankey and his company, having never really bonded before in New York, got some things wrong.

Now we're going to have to post their financial statements, that's what I think that means, to show that they have the credit and the wherewithal to back the bond. Because the clerk's office is like, I've never heard of this company. I've never heard of Mr. Hankey's company here. Again, I'll end it on this. I love New York. I've had of Mr. Heike's company here. But again, I'll end it on this. I love New York. I've had some things, we filed some things that have had to get corrected too. You leave off a signature, it needs an affidavit.

They don't like the form of something. The clerk's office can drive you crazy sometimes, to be frank. And they'll bounce it back and tell you to re-upload and re-file. It happens. It happens. But I love New York's, which is, have a great day, like an emoji. Hope you can get the $175 million bond up. Now, if he doesn't repost, then he will. And for some reason, the clerk's office doesn't like the undertaking. In other words, doesn't like the financial backing or backup for the bond by Hanke's company, they'll reject it again.

And then Donald Trump is going to have to go find somebody else. I'm not sure that happens, but I want to provide that as a little bit of expectations here. We'll cover it all on the Midas Touch Network and on Legal AF, only on the Midas Touch Network. Every Wednesdays and Saturdays, join us at 8 PM Eastern Time. You'll find out why we call it Legal AF. I do it on Wednesdays with Karen Friedman at Nifilo, Saturdays with Ben Micellis, and then on hot takes just like this one. And if you like the law and where we sit at the intersection of law and politics, you'll love our new Patreon, which is at patreon.com slash Legal AF for the price of a couple of cups of coffee a month. We'll give you

detailed information and molecular level legal understanding of the very concepts that we talk about every day, every hour on the Midas Touch Network. So if you like what I'm doing here, give me a thumbs up. It helps, sends a message to the algorithmic gods. I like this kind of content. So until my next hot take, until my next Legal AF, and then on Patreon, I'm Michael Popak reporting. Heery, heery. Legal AF Law Breakdown is now in session. Go beyond the headlines and get a deep I'm Michael Popak reporting.