Grant Cardone blasts New York's sanction against Trump as 'abusive overreach’ — warns 'biggest losers' will be NYC’s tax collectors, property owners and pension funds
In a pivotal ruling by a New York judge, former U.S. president Donald Trump and his company were found guilty of fraudulently inflating the value of their assets, misleading banks and insurers.
Initially, Trump was slated to pay a $464 million penalty, but a subsequent ruling has reduced this amount to $175 million.
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Real estate mogul Grant Cardone openly criticized the outcome of the Trump case.
“This sanction against Trump is an abusive overreach similar to the vaccine mandates,” he remarked in a recent tweet. “And like the mandates this will backfire, benefitting red states & those willing to move their businesses & investments.”
Despite the significant fines imposed on Trump, Cardone views him not as the primary victim of this case, saying, “The biggest losers in the judgment will be New York City tax collectors, property owners, private equity & pensions fund invested in New York City.”
Cardone warns of the potential long-term impact on New York City, suggesting that the city could face extensive financial turmoil.
“This could take decades to fix. This will cost New York City hundreds of billions of dollars and literally wreak financial havoc on the city,” he said during a recent interview with Fox & Friends.
‘Industry standard’
The lawsuit accused Trump of inflating the stated values of his real estate properties for financial gain.
Cardone, however, disputes the accusation, suggesting a discrepancy in treatment.
In a separate discussion on Fox News, Cardone criticized New York and similar cities for penalizing what he perceives as common industry practices. He specifically pointed out their ability to “sanction a man for appraisals that we all do exactly the way Trump did.”
Cardone continued to defend the practice as “industry standard” and an “approved method,” explaining, “I assess a value, a third party assesses a value and then we bring those values together.”
“Shark Tank” star Kevin O’Leary shares Cardone’s viewpoint, and said so earlier this year during a CNN interview, arguing that the practice is widespread in the real estate sector.
“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 stated. “If you're going to sue this case and win, you've got to sue every real estate developer everywhere.”
Exiting NYC
Consequently, Cardone has decided against investing in New York City, expressing concerns over potential governmental overreach.
“It became clear to me that in New York City … I don't actually own my property: Any government overreach or out-of-control government could come in and seize my property,” he stated.
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The verdict of the Trump case has led to Cardone’s decision to redirect his investments: “I see what is happening to Trump is a sanction against Trump and a seizure of his property. So we decided not to invest there. Last week, we placed that same $500 million in Florida.”
Cardone raised alarms about the future financial health of New York City, predicting a decline in the city's tax base and noting that property tax collections are “already off.”
In a similar spirit, O’Leary labeled New York a “mega loser state” following the Trump ruling, stating, “I would never invest in New York now.”
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
