Uh Robert this strikes me as just a complete own goal here for that could steal all of your property deny you a right to appeal based on nobody suffering any harm of any kind nobody wants to do that I mean what made America a great legal hits keep on
Coming for Donald Trump and the world is waking up to the full banan public nature of the Judgment handed down against the forign president in New York City last week joining me now to discuss Donald Trump’s legal woes is expert trial attorney Robert Barnes Robert
Thanks so much for joining us on the US report I want to talk about some of the specifics in this ruling in Trump’s New York civil fraud case last week now he was ordered to pay nearly 355 million US dollar that’s over half a billion Australian barred from doing business in
New York for three years Trump’s lawyers are asking for a delay in enforcement of the Judgment but there’s also this poison pill in here which is that he can’t borrow money to even pay off the thing so he can appeal it from any New York institution tell us about this and
How much is this just the Democrats utterly weaponizing the justice system to punish Donald Trump well it’s unparalleled and unprecedented uh this statute has never been used in this way in the history of the state of New York no comparable statute has been used in this way in the
Entire country no case like this has ever been pursued against a leading political OPP of the presidential candidate or anybody for that matter so we we are in unparalleled Waters actually it’s closer to half a billion with a 9% interest assuming it’ll take 18 to two years to actually
Settle this in an appeal which I think it should be appealed um he he’ll work hard to raise it I think he can do it but I but I I don’t think this case is about Trump anymore at all because you heard the governor of New York come out
Yesterday and say look everybody uh don’t be scared about doing a business in New York uh because the only people we prosecute are people like Donald Trump who don’t behave well that didn’t go over very well with the investment Community because we’re all asking each other who’s next this was a victimless
Crime nobody lost any money and a judge out of nowhere put on a $355 million penalty I mean who’s next so if you think Kevin before I I don’t want to cut you off but I hear about the the so-called victim’s crimes but the laws on the books falsification of
Business records in second degree issuing false financial statements insurance fraud conspiracy and all these different aspects of it those are actual crimes I take as your point is that these should not have been prosecuted well my point is there’s never been a case like this in 75 years
Everything you just listed off is done by every real estate developer everywhere on earth in every city this has never ever been and prosecuted but here’s the real point that people in New York should concern themselves with you can put your money anywhere I’m a real estate developer do you think there’s a
Chance I would ever take a chance on New York again New York is turning itself into a flyover State I have to build data centers now I’m not going to go to New York New York has power it’s got fiber optics it’s got Niagara Falls but no we’re not even thinking about it
We’re going to places that have the exact same thing where we have rational Governors that have never done this to investors this is about New York and its people if I were in New York today and I was living there I would ask myself maybe we should hire better management
Why is this happening to us why are we becoming a flyover State why are investors concerned about putting their money there but shouldn’t you ask that wouldn’t wouldn’t those people also be saying first of all I do wonder how many people take issue with the idea a that
Every investor is engaged in falsifying business records that every investor is engaged in what has been accused of Donald Trump and the Trump organization because there’s probably a lot who were saying to themselves I’ve never falsified my business records I know what a square foot looks like I know
What what I can ask for and what I have the money to support so I I wonder to what extent that really is true but on the second Point [Applause] W I’m supporting American entrepreneurship and New York is slowly becoming the number one loser state in America I’m sorry that’s what’s happening If he does not have funds uh to pay off the Judgment uh then we will seek uh you know judgment enforcement mechanisms in court and we will ask the judge to seize his assets this is this is basically communism here seizing your assets for opposing the regime isn’t it Robert
That’s exactly what it is and in fact you had Washington political Consultants today putting out circulating reports at places like predicted and others that this would also handicap Trump’s ability to fund his own campaign that this is an attempt not only to bankrupt uh a political opponent but deny him campaign
Funds so that he can compete for the presidential election we have never experienced anything like this in history and that’s what makes it so dangerous that this can happen to anybody if it can happen to Trump then it’s a guarantee it can happen to any ordinary person who just gets sideways
With the government politicians in any location they can seize all your assets they can steal all your properties they can deny you a right to appeal even though you cause no injury to anybody anywhere this is a classic version of an excessive fine in violation of the eth
Amendment to the US Constitution well I mean constitutionally it’s essentially you know it’s a bill of attainer it’s they’re going after one particular person using the legal system that’s supposed to be uh free and fair to all isn’t it and no monetary losses and in fact it’s just detailed the victim
Actually uh testified for the defense on behalf of trump saying we don’t think anything’s wrong here and by the way this practice is is done by every developer in every city but think about the problem I’ve got I don’t have to invest in New York but I do have to
Invest and right now the fastest growth of capital in in development is in data centers they’re expensive and they require power they require fiber and they require policy and they need stability cuz you’re going to invest about $3.6 billion over 22 years and there’s a real demand for data centers
Because of AI now New York has Niagara Falls and that’s behind the power sub 5 cents a kilowatt hour that’s very interesting but so does Oklahoma North Dakota and West Virginia so where do I go why would I even take a 1% risk with what’s going on in New York why
Don’t I just go to where the governors in the case of s or beram or Justice are pro business they actually ran businesses they don’t do this to companies and they know the damage is going to happen so it’s uh it was an opportunity we thought this year was the opportunity to
Come into Chicago California and New York City I’ve been waiting for 40 years now to invest in that Marketplace I was completely confident Steve this was the year to come and when that ruling happened uh it was like pencils down don’t touch it don’t go there we invest
For 14,000 investors at Cardone Capital that depend on cash flow and if I can’t predict the cash flow because of some ruling or because of the migrants or because I can’t evict people New York City just keeps doing every single thing they can to sell real estate in Florida
And not sell real estate New York right well and just look at the Grand Cardone story you left uh the great state of California what over 10 years ago and moved to Florida because that makes sense now Grant what is it about this particular judge’s
Ruling that has you worried uh as a real estate investor going forward the Peril you could wind up in yes so on every loan application or every transaction I’m going to go to a bank and say hey if I want to put a loan on this uh you know
What are the loan proceeds going to be those loan proceeds are based on the value of the property they’re going to require me to actually underwrite my property on the cash flow uh the income of the property and what valuation I believe that property’s worth the broker
Will also put a valuation on it probably a third party uh one of my third parties to check my own underwriting for me internally for my investors prominent investors have signaled their intent to Halt their business in New York following the $355 million verdict in former president Donald Trump Trump’s civil fraud case
Real Estate Mogul Grant Cardone announced that his firm Cardone Capital would no longer underwrite New York real estate just days after Shark Tank star Kevin o vowed to no longer invest in the state as a result of the verdict I’m no different than any other investor I’m
Shocked at this I I can’t even understand or fathom uh the the decision at all there’s no rationale for it Cardone said in a post immediately discontinue all underwriting on New York City real estate the risks outweigh the opportunities at this time recent political decisions will continue to deteriorate price and benefit states
That don’t have these challenges focus on Texas and Florida judge Arthur andoran ruled that Trump must pay over $355 million for conspiring to alter his net worth to receive tax and insurance benefits and goran’s verdict additionally bars Trump and his sons Eric and Donald Jr from doing business
In New York for 3 years oi called New York a loser State and told Fox Business that he would never invest in New York now New Yorkers should be concerned the fine people of New York should ask themselves why are we such a loser State how are we going to attract business
It’s not just the existing businesses that are fleeing out to Texas and Florida what about new money like this that I’m talking about like a $4 billion data center not a chance I would put that in New York zero problem absolutely there’s significant constitutional problems here there’s a substantive due process and procedural
Due process violations because of the denial of the right to appeal conditioned upon access to funds he doesn’t have the you have a denial you have an excessive fine the Supreme Court has repeatedly ruled that you cannot forfeit property at a state unless there is a proportional relationship to the
Underlying harm here the underlying harm was Zero uh in fact everybody profited from Trump’s deal including the state of New York including the banks involved in this case case That’s a classic version of excessive fine you have a form of excessive punitive damages the Supreme Court has said there has to be a
Relationship between punitive damages and any form of underlying harm about a 5 to6 ratio Justice Brier called it the rule of thumb well this is 350 to zero uh so this is completely disproportionate so there’s substantial federal constitutional problems here that should get the attention of the
Supreme Court of the United States if the New York appell courts don’t do their job in correct this travesty of Justice this well Robert what was wild to me though is that you know you’ve got all these New York liberals cheering going yeah yeah yeah we got Trump but
You know having been in New York about 6 months ago I can tell you the economy doesn’t need this sort of chasing out of of successful businesses um people I talked to are saying that it’s a Witch Hunt and in New York people are now
Saying not sure I want to go and uh invest in a place like this just have a listen to this guy responding to the ruling in his New York fraud case at the Ingram angles Town Hall last night in South Carolina we went through a trial it turned out we’re totally innocent on
Everything and he finded me $355 million plus interest on other things my financial statements were conservative everybody made money there was no victim this guy ruled that I was guilty before the trial started asset class is very highend data centers they cost anywhere from 2 and half to 3 and2 billion each
They’re very expensive they require low power you need permits but most of the major institutions in the world need more data centers and that’s why developers like me are doing this now you need power so New York has Niagara Falls normally you’d consider that to put in one of these facilities create
400 jobs five more jobs for each of one of those for auxiliary Services I can’t go to New York so so I’m going to Oklahoma North Dakota West Virginia governor stit Kevin stit my staff have met with him Governor Bergen them same thing Governor Justice those are winner States they don’t do things
Like this 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 the fine people of New York should ask themselves
Why are we such a loser State how are we going to attract business it’s not just the existing businesses that are fleeing out to Texas and Florida what about new money like this that I’m talking about like a $4 billion data center not a chance I would put that in New York zero
Probability never and so they’ve got a lot of work to do to find themselves getting out of this situation this has all occurred post pandemic winner States versus loser States look at Tennessee right now fastest growing city in America Nashville winner State good policy competitive taxes you’ve got to
Start thinking about this in the context of winners and losers New York Mega loser State it’s bad policy that’s the problem it’s bad policy and defunding the police and all of that remember AOC chased out 10,000 jobs that Amazon wanted to bring I love the people of New York and I
Think it’s a great state I just can’t take the risk of doing business there yeah no they need uh more business friendly environment and it would be good for the city good for everybody good for jobs all of it but you have to entice businesses not repel them uh and
You’re clearly repelled by you a guy at the bank at Merill Lynch heard about it and bought it for the price I had stated to the bank so every seller is always going to to push the price value up based on the future not based on fraud
So you’re just worried that you might if you were big in New York real estate this could come back to haunt somebody like you until this uh thing is overruled and I believe it will be nobody nobody in commercial real estate investing big money we were going to
Take we were going to put a billion dollars in New York City this year we were going to put a billion dollars in Chicago and maybe another billion in in in Los Angeles and we won’t touch any of them now all right Texas Texas Florida
Arizona go hard go big and go long all right ladies and gentlemen you heard it here first from Grant own Grant thank you very much for getting up early with us today thank you Steve all right all over the world and if if if you’re anywhere in the world do you want to
Risk your money or your assets in a legal system that could steal all of your property deny you a right to appeal based on nobody suffering any harm of any kind nobody wants to do that I mean what made America a great place for the whole world to invest was the stability
And reliability and transparent well now some Real Estate Investors are worried about working in New York City and owning property there private Equity Fund manager and real estate investor Grant Cardone told his employees quote immediately discontinue all underwriting on New York City real estate the risk outweighs the
Opportunities at this time focus on Texas and Florida and Grant he had his name over every single building here in New York and now he looks like one big huge loser and he doesn’t have people now will not know will know that he doesn’t have the money that he’s doesn’t have business Acumen
That he’s not a great business person and I got to tell you aect that’s what hurts that’s what hurts Kevin and that seems to be the goal here what do you say I listened to the governor of New York’s words um in the last 48 hours to
Try and quell the concerns of investors like me what she basically said was it’s okay to do business in New York as long as you’re not Donald Trump and you behave properly now I don’t even know what that means but I’m asking myself why take the risk who’s next is what
Everybody’s asking okay I understand what happened here I don’t agree with the size of the penalty and I think on a bipartisan bases most people don’t they think it’s quite unfair given that there was actually no victim on that’s why I said there are winner States and loser
States and right now and I used to think California was the number one loser State top of the charts pick of the pops it’s New York number one loser state in America yeah you know when you walk up and down the streets in New York and it
Has come back I think you know fairly well since Co but there’s a lot of Danger on the streets there’s a lot of reasons for people not to want to come here and you know they should be enticing companies giving them tax breaks to open businesses in New York
They’re doing exactly the opposite look at what happened at Gucci the other day watch this this is in the middle of the afternoon on a break sunny day Watch What Happens so Kevin what did you think of Governor hokel saying this is like a unique one and done because Donald Trump
Went too far and was so nefarious uh you guys if you’re just doing what you should be doing you have nothing to worry about but they’re very worried about it yeah we’re very worried every investor is worried because where is the victim who lost money this is some
Arbitrary decision a judge made this policy and what this says what is say about the bar the legal bar in New York aren’t they going to question this judge what is this $355 million and there’s dollars as a as a penalty and there’s plus interest at 9% and there’s no
Victim I mean wellend everybody in America loves a courtroom drama and we all sort of uh oh we knew he was guilty mean this particular trial or occasion was H to decide how much and so the judge threw the book at him and um you know Trump’s just being accused of
Cooking the books for the company he’s been excluded from running a company for three years or any company they went after the kids and everybody else which is um uh not a very good look for a lot of people and you know it’s quite obvious to me that u in many ways this
Court has been weaponized to go after Trump I mean it’s not if you’re gonna going to put a businessman away for cooking the books then be a lot of businessmen I’m sorry her her words fall on death fears to everybody there’s nothing she can say to justify this
Decision and this has nothing to do with Trump nothing to do with Trump forget about Trump this is not a trump situation this is a New York problem now the whole world is looking at this saying what are you doing to yourselves yeah well I think all fair-minded Americans view that uh that
Judgment as as rather absurd I mean there was no victim no one was harmed by uh this alleged fraud by uh president Trump but what’s worse is that you see a lot of big business investors and by the way Donald Trump whether you love him or
Hate him I mean he has been hugely impactful in helping build New York City into the in the city it is today you know he builds buildings he was the one who rescued the remember the skating rink that the government couldn’t get built and he built that so he you know
When you when you have people who build things you want them to be attracted to the city and you may have seen uh kevino ly yesterday who’s a major investor said hey I I wouldn’t invest in New York right now this is a Time Jan let’s not
Forget when over the last decade three million Americans have left New York so this is the last thing New York needs right now is to be seen as anti-business there’s no audio on this but you know basically watch this this guy’s like okay I’m in I’m in the door
He starts you know taking uh roller suitcases the other guys grabbing purses off this is the middle of the day and the crazy thing is Kevin that when they get out on the street with this basic huge burlap bag full of Gucci stuff people barely even bat an eyelash one
Guy turns around and goes that looks a little weird what’s going on over there hey thank you Steve I’m good this morning okay listen I think that’s kind of a no-brainer I mean I’m sitting in New York City if I had my DRS I I would
Think that Florida or Texas would be a better bet just given the fact there’s so much crime and the fact that as we’ve been detailing you know the migrant crisis is zapping all of our resources here this is not a good real estate market right now right and then the bank
Is also Steve going to use at least one other appraisal maybe two are independent of me they’re going to go out and hire those people and pay those people they’ll charge me back for it later so there could be as many as five appraisals on that the value that I’m
Going to put on the property keep in mind when I’m buying something I’m not thinking about selling it the next day in the case of trump he’s not selling any of this stuff right in the case of Cardone Capital we we are long-term holders 10 15 and 20 years we want the
Property for the cash flow so I’m going to put a value on it in the future and uh look I remember doing a deal once where I put a value on my property that I was getting rid of I inflated the value jeopardizing Global investment in
The name of getting the rent of Donald Trump Donald Trump faces significant legal challenges in New York as he was ordered to pay nearly do 355 million in a civil fraud case and barried from doing business business in the state for 3 years his lawyers are taking a delay
In enforcing the Judgment highlighting the unprecedented use of a status in the States’s history the legal action has raised concerns about potential negative impacts on the business Community Real Estate and Global investment in New York critics argue that the case laes the clear victim when Banks testifying in Trump’s favor the Judgment enforcement
Mechanisms including seizing assets have raised constitutional concerns with accusations of weaponizing the justice system for political purpose the broader consequences may include a significant economic cost for New York our conservative estimat suggest it could be loss of dollar 10 billion or more in direct investment over the next decade the cases
Disappropriate nature and potential fell out underscore the challenges of navigating legal and political landscape interwine with high profile figures that
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