In a riveting exchange on CNN, Kevin O’Leary, widely recognized from “Shark Tank,” passionately defended the real estate industry in the wake of Donald Trump’s controversial verdict in New York.
The discussion ignited with CNN’s Laura Coates posing a question on the implications of fraud and its impact on business confidence. O’Leary swiftly retorted, “Excuse me, what fraud? This is not about Trump anymore.”
O’Leary continued, “When you get a developer that builds a building and he says it’s worth $400 million and he wants to borrow $200 million from a bank, which happens every day, everywhere on earth, including every American city.”
He then passionately pointed out the real-world consequences of penalizing developers based on disputed valuations, referencing the judge’s decision to penalize “this developer” – a veiled reference to Trump – for $355 million.
“Let’s penalize all the developers across America. They’ve all done the same thing.”
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Amidst the back-and-forth, O’Leary expressed his concerns over the implications of the verdict for New York’s investment climate. He argued that the ruling sends a negative message to investors worldwide, potentially driving investment away from New York to other states that are more business-friendly and less litigious.
On Monday, O’Leary announced he was even boycotting New York City over the Trump ruling. “I’m shocked,” O’Leary told Fox News. “There’s no rationale for it. I can’t even understand or fathom the decision at all.”
He extended his criticism towards the state of New York, branding it a “loser state” alongside California due to unfavorable policies, high taxes, and uncompetitive regulation.
“This has nothing to do with Trump. Forget about Trump. This is not a Trump situation. This is a New York problem now.”
Last Friday Judge Engoron ruled that Trump must pay over $350 million and is barred from conducting any business in New York State for three years. The landmark ruling not only threatens to drain Trump’s available cash reserves but also marks a critical juncture in his business career.
The New York Attorney General, Letitia James, accused Trump and his company of inflating asset values on financial statements provided to lenders, insurers, and tax authorities to obtain benefits such as loans and tax deductions.
The court found that Trump and his associated entities engaged in fraudulent activities by submitting false financial data to banks and insurers to secure loans and insurance at more favorable rates.
Despite the defense’s denial of these allegations, court documents state they found substantial evidence of fraudulent misrepresentation and imposed several remedies, including the continuation of an Independent Monitor’s appointment, the installation of an Independent Director of Compliance, and restrictions on the defendant’s ability to conduct business in New York for a few years.
Trump is also set to stand trial before another New York jury on March 25, marking the first criminal trial ever for a former president.
During a pretrial hearing last Thursday, Trump appeared in court for a case related to a 2016 payment made to adult film actress Stormy Daniels. On March 30, 2023, a grand jury indicted Trump, levying 34 felony counts against him for the falsification of business records. Trump has maintained his innocence and entered a plea of not guilty.
