Investor Kevin O'Leary said New York is a "loser" state and will no longer invest there following former President Donald Trump's $355 million fine in the state last week.
O'Leary, who goes by the nickname Mr. Wonderful, said he was "shocked" by Trump's exorbitant fine after Judge Arthur Engoron ruled the former president fraudulently overvalued his assets.
O'Leary made his remarks during a Monday appearance on Fox News.
"It doesn't matter what the governor says, New York was already a loser state like California's a loser state," O'Leary said of New York Gov. Kathy Hochul's attempt to quell concerns of business owners in the state. "There are many loser states because of policy, high taxes, uncompetitive regulation. It was already on the top of the list of being a loser state."
"I would never invest in New York now," he added. "I'm not the only person saying that."
O'Leary said one of the current "hottest" asset classes in real estate and development was "very high-end data centers," noting their price tag of $2.5-3.5 billion each.
"They are very expensive, they require low power, you need permits," O'Leary said. "But most of the major institutions in the world need more data centers, and that's why developers like me are doing this. ... New York has Niagara Falls. Normally, you'd consider that to put in one of these facilities."
"I can't go to New York," he said, noting he was in talks with Gov. Kevin Stitt of Oklahoma, Gov. Doug Burgum of North Dakota, and Gov. Jim Justice of West Virginia about developing high-end data centers, adding those were "winner states."
"They don't do things like this," O'Leary continued. "I have to syndicate that debt and all that equity. We're talking billions of dollars here. Do you think any foreign institution, or any private equity firm, or any pension fund would touch New York? No. And that's why New Yorkers should be concerned."
O'Leary said New Yorkers should question why their state would repel business.
"It's not just the existing businesses that are fleeing out to Texas and Florida," he continued. "What about new money like I'm talking about?"
Mr. Wonderful insisted there was "not a chance" he would invest in New York due to regulations.
"They've got a lot of work to do to find themselves getting out of this situation," O'Leary said, noting businesses began leaving New York since the COVID-19 pandemic. The investor compared New York's policies with Tennessee, which he referred to as a "winner state."
"You've got to start thinking about this in the context of winners and losers," he added.
O'Leary said Engoron's decision was "arbitrary" and added Hochul's comments fell on "deaf ears" as the ruling may be used in future cases against investors.
"There's nothing she can say to justify this decision," O'Leary said. "And this has nothing to do with Trump ... Forget about Trump."
"This is not a Trump situation. This is a New York problem now," he added.
On Sunday, Hochul the ruling was an "extraordinary, unusual circumstance" and said "law-abiding and rule-following" New York businessmen had "nothing to worry about."
"They're very different than Donald Trump and his behavior," she said during an appearance on radio show The Cats Roundtable.
"This judge determined that Donald Trump did not follow the rules," she continued. "He was prosecuted and truly, the governor of the state of New York does not have a say in the size of a fine, and we want to make sure that we don’t have that level of interference."
Trump commented on O'Leary's remarks in a Truth Social post this afternoon.
"Kevin O’Leary is so great, and tells it like it is. Businesses will flee NYC & State after the Corrupt Judge’s ruling!" he wrote.
