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Daily Beast: Trump Bond’s Cayman Connection ‘Stinks to High Heaven’

The company that saved Donald Trump with a $175 million bank fraud bond is playing an insurance game that has experts questioning whether New York will ever see the money.

By Jose Pagliery Political Investigations Reporter

When the questionably leveraged company that rescued Donald Trump with a last-minute $175 million court bond insured itself with its own parent company, it raised concerns about how the company was playing with its finances.

But now, as even more details come out about that parent company—particularly that it’s based in the Cayman Islands, a notorious tax haven—the concerns are just piling up.

Former industry regulators and investigators told The Daily Beast that Knight Specialty Insurance Company being financially backed by a firm based in the Cayman Islands should raise eyebrows at the New York AG’s office—particularly because companies frequently organize in the Cayman Islands not just to avoid taxes, but also to minimize visibility into its business practices, avoid more stringent U.S. regulations, and make liability harder should things go wrong.

All of those concerns could come into play if the New York Attorney General has to chase the company down for the money Trump currently owes for committing bank fraud.

“This just stinks to high heaven,” said Dave Jones, who oversaw the nation’s largest insurance market as California’s insurance commissioner for seven years until 2018.

“Taken in its totality, this dog does not hunt. Along every step of the way, this purported bond is problematic. It’s just one issue after another that calls into question whether this bond could ever possibly satisfy the judgment,” said Jones, who’s now the director of the Climate Risk Initiative at University of California Berkeley.

For more on this story go to DAILY BEAST


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