(UnitedHeadlines.com) – After a New York judge ruled that, in his civil fraud case, former President Donald Trump must pay $355 million in punitive damages, “Shark Tank’s” Kevin O’Leary, who is known as “Mr. Wonderful,” is issuing a warning to real estate investors.
The O’Leary Ventures chief stated that people should look at the case without the “Trump factor.” He said investors need to look at the risk to capital developing New York real estate could cost them as the “judge arbitrarily decide[d]” the amount Trump must pay.
He called the ruling “an assault on real estate,” adding that the case could lead to other political activist prosecutors charging real estate developers with similar charges if the case is not overturned when Trump appeals the verdict.
On Feb. 19, O’Leary repeated his comments, adding that he was not the only person issuing a warning to real estate investors. He stated what Trump was found liable for is similar to the usual “haggling” between a bank and a prospective debtor, and New York is now classifying that as potentially fraudulent.
In Manhattan Supreme Court Justice Arthur Engoron’s ruling, Trump was also banned from holding the position of director or officer for any business in New York for three years, which O’Leary called “detrimental” to the larger “business landscape.”
He called New York a “loser state” because of the ruling, telling investors and developers to consider incorporating in “winner states” such as Texas, North Dakota, Oklahoma or West Virginia. He said California was at the top of the list of “loser states” where investors and developers should not incorporate. The list includes states such as Massachusetts and New Jersey.
The host of FOX Business, Charles Payne, agreed with O’Leary, citing $1 trillion in business that has moved to places such as Texas and Florida from New York.
O’Leary concluded the case must be overturned on appeal because “It’s not healthy for the country.”
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