Prominent investors have announced plans to cease their business activities in New York following the $355 million verdict in former President Donald Trump’s civil fraud case.
Real estate mogul Grant Cardone declared on Tuesday that his firm Cardone Capital would immediately stop underwriting New York real estate. This decision came a day after Shark Tank star Kevin O’Leary also pledged to no longer invest in the state due to the verdict.
Cardone instructed his firm via a post on X to “immediately discontinue ALL underwriting on New York City real estate,” citing that the risks now outweigh the opportunities. He emphasized that recent political decisions could further deteriorate prices in New York and advised focusing on states like Texas and Florida instead.
In an interview with Fox & Friends on Wednesday, Cardone elaborated on his decision, stating that the verdict concerning Trump’s case prompted a definitive halt in investing in New York.
O’Leary echoed Cardone’s sentiments, questioning the rationale behind the judge’s decision and expressing concerns about its implications for the legal system in New York. He emphasized that the ruling had broader implications beyond the Trump case, characterizing it as a problem specific to New York rather than a partisan issue.
The verdict, issued by Judge Arthur Engoron, convicted Trump and his organization on various fraud-related charges, including the falsification of Trump’s net worth and property values to secure advantageous loans and insurance rates. Alongside the guilty verdict, Trump, along with his sons Eric and Donald Jr., received a three-year ban on conducting business in New York. This decision not only significantly impacts Trump’s financial endeavors but also sends ripples of concern throughout the investment community.
In response to apprehensions raised by the verdict, Governor Kathy Hochul sought to assuage fears during a radio interview. She sought to draw a distinction between Trump’s actions and those of other law-abiding businesspeople in New York, asserting that they had nothing to fear. However, O’Leary remained unconvinced by Hochul’s reassurances, highlighting the broader unease among investors, irrespective of the governor’s statements.