Former President Donald Trump was slammed by a New York state judge’s ruling that he pay $355 million in punitive damages related to the civil fraud case against him. Trump, who made much of his fortune in real estate in New York, has vowed to appeal the judgement.
Another successful entrepreneur is appealing to other business owners, particularly real estate investors, to watch their backs. He said the ruling against Trump is a danger to anyone conducting business in New York.
Anyone wanting to develop business in the state must be prepared to endure the same fate as Trump if they get on the wrong side of the political elite. “Mr. Wonderful” Kevin O’Leary said every business should heed the danger of this court ruling.
From Fox News:
“Forget about the Trump factor,” he said. “It’s not about that. What does this say to everybody that wants to do work in New York and wants to risk capital? … this judge arbitrarily decide[d] that this is the right amount. I don’t understand it. No developer does.”“It’s an atrocity. It’s an embarrassment, but it’s an assault on real estate.”
O’Leary, chief of O’Leary Ventures and known as “Mr. Wonderful” on the television show “Shark Tank,” is a winner in business on many levels. He railed against the political elites who run New York and are ruining the state.
“New York was already a loser state, like California is a loser state. There are many loser states because of policy, high taxes on competitive regulation,” he said. “I would never invest in New York now. And I’m not the only person saying that.”
O’Leary noted that few sectors in the business world create cash flow equivalent to real estate investing. He argued that New York convicted Trump for basic business practices of “haggling” between banks and prospective borrowers of their money.
With New York now appearing to identify some aspects of this “haggling” as potentially fraudulent, it garners the state his “loser” designation. He suggested entrepreneurs avoid the trend of incorporating business on the coasts, except Florida, and consider establishing corporations in North Dakota, Oklahoma, West Virginia, or Texas.
“These are ‘winner states’,” O’Leary said. “Why go to a ’loser state’ like New York? Each of us as investors, we vote with our capital.”
FOX Business host Charles Payne echoed O’Leary’s sentiment, saying his suggestion that “no one should touch New York” incorporation is “absolutely right.”
Payne also pointed out that $1 trillion in business has moved away from New York to states like Florida and Texas. He suggested that with downtown New York City skyscrapers filled to around 50% capacity, it is unlikely these will return to past days when the commercial space was full.
Key Takeaways:
- “Assault” on real estate after Trump ruling spurred a warning from “Mr. Wonderful.”
- Kevin O’Leary said that the “loser” state of New York should be avoided by investors.
- The “Shark Tank” star said the decision against Trump for “haggling” is an “atrocity.”
Source: Fox News
