A recent ruling by a New York judge has caused even more problems for former President Donald Trump. The court ruled that Trump and the Trump Organization are guilty of lying about asset values for insurance and loan purposes. The ruling has fined Trump $355 million. This has led to many reactions, including from “Shark Tank” star Kevin O’Leary.
Kevin O’Leary’s Stance on New York Investment
Speaking to Fox Business, O’Leary expressed shock at the judgment against Trump. He claimed he could not understand the judge’s decision and called it an irrational move on the court’s behalf. O’Leary said, “I can’t even understand or fathom the decision at all. There’s no rationale for it.”
No More Investment
O’Leary also used the moment to criticize what he sees as New York’s and California’s unattractive policies and regulations, calling them “loser states.” O’Leary said “he would never invest in New York,” from this point forward. He spoke about how the state had lost a potential $4 billion data center investment over to this ruling.
The Controversy Over Victims
O’Leary questioned the ruling by pointing out how there were no clear victims. He claims that since nobody actually lost any money, the judgment was pointless, as technically, nobody was hurt by Trump’s actions. He said that this could actually discourage investors, given the lack of any actual harm or victims.
What Victim?
He said, “Every investor is worried because where is the victim? Who lost money? This is some arbitrary decision the judge made. This policy and what this says — what does this say about the bar, the legal bar in New York? Aren’t they going to question this judge? What is this? $355 million as a penalty plus interest at 9% and there’s no victim?”
Comparison with Industry Practices
O’Leary then spoke about how Trump’s alleged crimes are actually common practice in real estate, defending Trump’s actions as standard industry practice. He said, “Forget about Trump, every single real estate developer everywhere on Earth does this. They always talk about their asset being worth a lot and the bank says no. That’s just the way it is. If you’re going to sue this case and win, you’ve got to sue every real estate developer everywhere.”
Judicial Reasoning and Penalties
Judge Arthur Engoron, in his ruling, criticized the defendants for ignoring the facts and apparently lacking guilt. He claimed Trump’s actions were a deliberate effort to commit business and insurance fraud. Along with the financial penalty, Trump’s business certificates have been canceled in the state. He is unable to be a director or officer for any business in the state for three years.
Trump’s Consequences
Additionally, neither Trump nor his companies may apply for loans in the state for three years, regardless of whether it is a personal or business loan. Justice Engoron also demanded that an Independent Director of Compliance be employed at Trump’s company to oversee that it complies with financial regulations.
Oversight and Compliance Measures
The Independent Director of Compliance is mainly tasked with ensuring the organization follows legal and regulatory standards. This should prevent future legal problems by looking closely at the company’s financial activities and reporting. Clearly, the court wants to make sure Trump and his associates are held accountable.
Financial Consequences for Trump and Associates
Trump and his business entities are liable for a total of $354.8 million. This figure could rise to approximately $450 million with interest. For Trump, who has an estimated net worth between $2.6 billion and $3.1 billion, these fines would be a hefty punishment. Moreover, Donald Trump Jr. and Eric Trump are each ordered to pay more than $4 million, with former CFO Allen Weisselberg directed to pay $1 million.
Associate Consequences
However, Trump is not the only one suffering from this outcome. His associates, Allen Weisselberg and Jeffrey McConney, also face the same bans in the state as him. However, unlike Trump, they have also been banned from being in any financial management role in the state for the rest of their lives.
Impact on Trump’s Business Empire
The ruling against Donald Trump could significantly affect his business holdings. These span across approximately 500 entities, including real estate, licensing, and various other ventures. The judgment specifically targets 10 Trump entities that are at the heart of his empire, such as his property at 40 Wall Street, a golf resort in Scotland, and the Mar-a-Lago resort in Florida.
Reactions and Consequences for New York’s Business Climate
Following the ruling, the Trump Organization claimed it was an overreach. Like O’Leary, they warned that the ruling would drive businesses away from New York. However, New York State Attorney Letitia James praised the verdict as a victory for fairness and accountability. She said it shows the importance of equal treatment under the law.
Potential for an Appeal and Further Legal Actions
Trump’s legal team has said they will appeal the decision. They said it was an “outrageous” move to nationalize a leading corporate empire in the U.S. and seize control of private property. They may seek a stay of the court’s order during the appeal process. If they do this, James will likely oppose it by requesting a block on asset transfers.
James’s Statement
In her statement, James said, “Today, justice has been served. This is a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents. […] When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people.”
Other Words
She continued, “Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them. There simply cannot be different rules for different people. Now, Donald Trump is finally facing accountability for his lying, cheating, and staggering fraud. Because no matter how big, rich, or powerful you think you are, no one is above the law.”
Exploring Alternative Investment Destinations
O’Leary then praised other states for being attractive alternatives for investment, including Oklahoma, North Dakota, West Virginia, and Tennessee as attractive alternatives for investment. He claimed these states have better policies, tax competitiveness, and growth potential. He said, “You’ve got to start thinking about this in the context of winners and losers,” and called New York a “mega loser state.”
Real Estate Changes
Outside of Trump and his associates, this ruling could also be a turning point for real estate in New York. It could change real estate valuations, and financial disclosures are handled industry-wide. It could cause insurance brokers to be stricter with their policies and for banks to be more careful with issuing loans.
Starting a Debate
The ruling against Donald Trump has started a debate over legal standards, investment climates, and the fairness of industry practices. O’Leary’s strong reaction is similar to that of many of Trump’s supporters. The case’s impact on New York’s economic landscape and national views of business practices remains to be seen.
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