The outlet reported Friday that although Trump’s legal team called the initial $464 million an “impossible bond requirement” and claimed it had been rejected by 30 companies he approached to raise bail. money, the former president had already received an offer from the billionaire. businessman Don Hankey to pay the full amount.
“I saw that they were being rejected by everyone and I said, ‘Well, that doesn’t seem like a difficult bond to post,’” Hankey told ProPublica. Hankey told the outlet that he contacted Trump’s representatives days before the bail reduction, expressing his willingness to use real estate as collateral for the loan — something Trump’s lawyers indicated other companies were not willing to do.
The bond was ultimately reduced to $175 million, saving Trump hundreds of millions of dollars, before being posted by Knight Specialty Insurance Company, Hankey’s firm.
Hankey told the outlet that although he is a Trump supporter, he would have made the deal regardless of his personal beliefs. He suggested that the former president had difficulty obtaining an appeal bond, not because he lacked the cash to support the deal, but because, for state-owned companies, “maybe don’t want to “you’re not offending 45% of the population” by visibly supporting Trump.
It remains unclear whether Trump’s legal team was aware of the negotiations between Hankey and Trump’s representatives. to report the total amount of $464 million, which was outstanding when bail was reduced. However, legal experts told Business Insider that if his lawyers knew about the offer and did not inform the court, they may have violated ethics rules.
After the outlet contacted Trump’s representatives, Hankey contacted ProPublica. In the second conversation, he told ProPublica that accepting Trump’s real estate as collateral would have been complicated and the deal would have been “difficult.”
What is happening now?
According to the New York State Bar Association, attorneys are bound by the New York State Rules of Professional Conduct, as adopted by the Appellate Division of the State Supreme Court .
“Lawyers who break the law or fail to follow this code of conduct are subject to disciplinary action, which may include reprimand, censure, suspension or loss of their license to practice law,” it reads. on the NYSBA website.
Two legal experts told Business Insider that if Trump’s lawyers knew about the negotiations surrounding Hankey’s offer as they appealed to the court for a lower bail amount, it would likely be a violation of ethics.
“If Trump’s lawyers knew that it was possible for him to obtain bail for the full amount when they filed their appeal, then their misrepresentation could constitute an ethics violation and fraud on the court,” she said. former federal prosecutor Neama Rahmani told Business Insider. He stressed, however, that it would be difficult to prove what Trump’s lawyers knew and when they knew it.
Andrew Lieb, a trial lawyer and legal analyst, told Business Insider: The conduct of Trump’s lawyers in this case appears to be “a blatant violation” of Rule 3.3 of the New York Rules of Professional Conduct, which states that lawyers must not knowingly make false statements of fact in court and that they must take “reasonable corrective measures”. ” including disclosing to the court if they become aware of a lie.
“If Trump’s lawyers are found to be breaking this rule, they should expect an ethics charge to be brought against them, which could result in anything from a private letter in their file until a suspension of the exercise,” Lieb told BI.
He added: “Furthermore, when they discovered it is irrelevant because, under the rule, they must take reasonable remedial action to correct the falsity of the evidence or statement, even if they became aware of it afterwards. “
The Trump campaign, lawyers representing the former president in his civil fraud case, and representatives for Knight Specialty Insurance Company did not immediately respond to Business Insider’s requests for comment.
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