'Excuse Me. What Fraud?' — Kevin O'Leary Says Civil Case Is 'Not About Trump Anymore' As New York Becomes A 'Flyover' State No One Wants To Invest In

Kevin O’Leary, a prominent real estate investor and co-host of ABC’s “Shark Tank,” recently aired his views on a significant legal ruling against former President Donald Trump, stirring the investment community. 

In a CNN interview with Laura Coates, O’Leary delved into the implications of the court’s decision ordering Trump to pay $355 million in damages for fraudulent business practices, questioning the precedent it sets for the industry. This amount, O'Leary said, ends up being closer to half a billion dollars after 9% interest.

“I don't think this case is about Trump anymore, at all,” O’Leary said, emphasizing the broader implications for investors. He criticized the selective prosecution in New York, suggesting it targets people like Trump for behaviors deemed unacceptable, leading investors to question, “Who’s next?” O’Leary labeled the situation a "victimless crime," asserting that it resulted in no financial losses.

O’Leary’s dialogue with Coates was charged with intensity as he defended practices Trump was penalized for, asserting such actions are widespread and integral in real estate. 

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Coates countered, bringing attention to the legal acknowledgment of crimes like falsification of business records and insurance fraud and said, "These should not have been prosecuted?"

“No, my point is, there's never been a case like this in 75 years," O'Leary responded, emphasizing the historical precedence of these practices going unprosecuted. "Everything you just listed off is done by every real estate developer, everywhere on Earth, in every city. This has never, ever been prosecuted.”

He clarified his primary concern, saying, "You can put your money anywhere. I am a real estate developer. Do you think there is a chance I would ever take a chance on New Y  ork again? New York is turning itself into a flyover state."

Coates sought to dissect the broader implications for legal and ethical standards in business, challenging the normalization of fraudulent practices in the industry.

The discourse probed the ethical contours of real estate business practices. O’Leary defended the industry’s reliance on banks for due diligence and the enduring nature of negotiation processes between developers and financial institutions. His contention was not merely about defending Trump but rather spotlighting the industry’s longstanding operational norms.

O’Leary questioned the rationale behind the fraud allegations. “Excuse me. What fraud? This is not about Trump anymore.” 

He elaborated on the customary practices of real estate valuation and financing negotiations with banks, underscoring the routine nature of such dealings. 

“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, every developer is an entrepreneur,” he said.

As the conversation grew more heated, O’Leary provocatively suggested reconsidering investment strategies away from New York, challenging Coates and the broader legal stance. 

“You really think people want to invest money in New York after this? How about we go somewhere else,” he said. 

This remark ignited a sharp exchange, with Coates asserting her desire for a balanced dialogue, to which O’Leary responded by acknowledging her legal expertise.

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