Former President Donald Trump criticized a recent court ruling that fined him over $350 million, stating that it would lead to a business exodus from New York State. Venture capitalist Kevin O’Leary echoed these sentiments, calling New York an uninvestable “mega loser state” due to the ruling.
The civil fraud trial, accusing Trump of inflating asset values for better loan terms, resulted in a ruling by New York Supreme Court Justice Arthur Engoron on Feb. 16. The decision ordered Trump and Trump Organization executives to pay $355 million in damages and banned the former president from doing business in the state for three years.
Trump, in response, claimed he paid over $100 million in taxes and accused corrupt officials of driving businesses out of New York. He plans to appeal the ruling, foreseeing significant implications.
“I would never invest in New York now, and I’m not the only person saying that,” Mr. O’Leary said.
“Do you think any foreign institution or any private equity firm or any pension fund would touch New York? No! And that’s why New Yorkers should be concerned,” he continued.
O’Leary, known for his role on “Shark Tank,” criticized the ruling as “appalling,” “unjust,” and “un-American.” He warned that if not overturned on appeal, it could prompt businesses to leave the state. In an interview on Fox News, O’Leary argued that the ruling makes New York even less attractive for investors due to uncompetitive regulations.
“Winner states versus loser states,” Mr. O’Leary said. “Look at Tennessee right now. Fastest growing city in America right now. Nashville. Winner state, good policy, competitive taxes. You’ve got to start thinking about this in context of winners and losers.”
“New York—mega loser state,” he concluded.
He stated that he would never invest in New York now and predicted that foreign institutions, private equity firms, and pension funds would avoid the state. O’Leary categorized New York as a “mega loser state,” contrasting it with “winner states” like Tennessee with favorable policies and competitive taxes.
Trump took to Truth Social to praise O’Leary for his criticism of the ruling, predicting an exodus of businesses from New York. Following O’Leary’s remarks, Trump reiterated the sentiment on social media, emphasizing the potential negative impact of the court’s decision on New York.
The civil fraud case was brought by New York Attorney General Letitia James, accusing Trump and the Trump Organization of defrauding banks, insurers, and others by allegedly overvaluing assets and exaggerating net worth. The trial centered on claims that Trump submitted false financial data to obtain better loan terms.
While Trump argued that no bank was victimized and lenders made substantial interest profits, Justice Engoron rejected defense expert witnesses’ testimony. The ruling ordered Trump and executives to pay $355 million in damages, with a three-year ban on Trump doing business in New York. Trump’s sons, Donald Trump Jr. and Eric Trump, were also fined $4 million each.
