Kevin O’Leary, the well-known investor and host of Shark Tank, has expressed deep concerns about the potential seizure of former President Donald Trump’s assets in New York. In a recent interview with Fox, O’Leary called the situation “scary” and criticized the idea of seizing assets, stating that it is something that happens in Venezuela, not in New York.
The controversy surrounding Trump’s assets stems from a fraud case filed against him by New York Attorney General Letitia James. The case focused on alleged inflation of asset values in annual statements from The Trump Organization, which were used to secure deals with banks and insurers. The New York Supreme Court recently ordered Trump to pay $355 million in damages related to the case.
O’Leary raised concerns about the stability of the justice system in the United States, stating that capital comes to America because of its stable legal environment. He pointed out that seizing assets is not a common occurrence in New York and that this situation could deter future investments in the state.
The investor also questioned the severity of the penalty imposed on Trump, noting that no money was lost and there were no victims involved. He wondered if the fine was commensurate with the alleged crime and expressed uncertainty about how long it would take for the appellate court to review and potentially reduce the penalty. O’Leary’s concerns reflect a broader sentiment among developers and investors who are hesitant to put new money into New York until this issue is resolved.
O’Leary also discussed the impact of the Trump judgment on business in New York. He mentioned that AI data centers are a growing sector in commercial real estate development, but he doesn’t know any developers in that field who are considering investments in New York. Instead, capital is flowing to states like North Dakota, Oklahoma, West Virginia, Montana, and Tennessee, where the business environment is perceived as more favorable.
The investor highlighted the fact that governors in these states are business-oriented and don’t engage in asset seizures. He contrasted this with New York, which he referred to as a “mega loser state” for business, citing high taxes and uncompetitive regulations as contributing factors. O’Leary’s sentiment was echoed by Grant Cardone, a private equity fund manager, who stated that his real estate investment firm would not be exploring opportunities in New York due to the recent ruling.
The controversy surrounding Trump’s assets has also drawn criticism from Senator Ted Cruz. He condemned New York Governor Kathy Hochul’s statements assuring real estate developers that they would not face the same treatment as Trump. Cruz argued that this selective targeting goes against due process and equal protection under the law.
Overall, the potential seizure of Trump’s assets in New York has raised concerns among investors and developers. The stability of the justice system and the severity of the penalty imposed on Trump are being questioned, leading to a hesitancy to invest in New York. As a result, capital is flowing to other states seen as more business-friendly. The situation highlights the potential consequences of legal actions and their impact on investment decisions.
