In an interview with CNN, Shark Tank star Kevin O’Leary criticized Letitia James’ fraud case against former president Donald Trump for allegedly inflating the values of several assets, including Trump Tower and golf courses, to obtain favorable loan terms and insurance rates through decade-long activities.
The New York Attorney General is seeking $370 million of damages against Trump and aims to ban the GOP leader and his companies in the state for life.
O’Leary ridiculed James and said, “I don’t think this thing will ever survive appeal regardless of what fine is. This doesn’t even make sense.”
The A-list celebrity expounded on his views and shared why real estate developers are maximizing their property valuations.
“If you’re a developer and you’ve got a building on the block, anywhere in America, and it’s worth, let’s say, $500 million, and you want to build a building right beside it, you go to the bank and say, ‘This building is worth $500 million. I’d like to borrow a construction finance loan against this asset, and I want you to tell me it’s worth $500 million, too.”
According to O’Leary, it is in the developers’ best interest to present their assets “in the brightest light,” typically maximizing the asset’s value from 40 percent to 50 percent.
He explained that since the bank might not agree to the stated value, this might lead to negotiations.
This practice is very common in the real estate industry, pressed O’Leary.
“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,” he added.
He then quipped that this practice does not harm any party involved.
With this being said, O’Leary shows how James has little to no idea how the real state industry works.
“Who lost money? Nobody.”
“If you’re going to sue this case and win, you’ve got to sue every real estate developer everywhere,” O’Leary remarked,” blasted O’Leary.
The leading Republican presidential candidate has denied any wrongdoing in the case.
“I did nothing wrong, my financial statements are great, & very conservative, the exact opposite of what the highly political & totally corrupt New York State attorney general says,” Trump quipped on Truth Social last week.
“Now the corrupt A.G. [attorney general] wants $370,000,000 as businesses flee New York. They should pay me.
Justice Arthur Engoron will announce his verdict on January 31.
I totally agree with Kevin O’Leary…I was also a real estate agent in New York and I am familiar with the pricess in the real estate business…the final word on the value of a real estate lies on the Bank or Lender although in many cases it’s negotiated between the Owner and the Lender… the kaw can’t criminalize such process…I have never seen anyone indicted or charged with criminal wrongdoing in giving an estimated value of your property and neither a Lender had brought a lawsuit against a real estate Owner when he/she applied for a loan using the property as collateral.