WATCH: Kevin O'Leary Says Investors Will Flee 'Loser State' New York After Trump Fraud Case Ruling - 'It's An Atrocity'

On Monday, Shark Tank billionaire investor Kevin O'Leary, also known as Mr. Wonderful, joined Fox News to discuss the impact that the recent civil fraud decision against 45th President Donald Trump will have on investors in the "loser state."

As previously reported by the DC Enquirer, Judge Arthur Engoron issued his decision in the civil fraud case brought in Manhattan by New York Attorney General Letitia James (D-NY). The judge found that Trump defrauded various banks to receive more beneficial loan terms. Engoron ordered Trump to pay a $355 million fine in addition to barring him "from serving as an officer or director of any New York corporation or other legal entity in New York for a period of three years."

O'Leary explained that the ruling is an assault on the real estate market in New York, given that what Trump did by using the value of his various properties to secure loans is a commonplace practice amongst real estate developers. 

The billionaire investor explained that it is a competition between states to entice businesses to invest there. "I thought before this judgment that the number one loser state in America was California, which is basically putting itself out of business slowly and surely. But after this judgment, I am going to make New York the number one loser state, followed by California, Massachusetts, New Jersey, and Michigan. These are places where taxes aren't competitive."

"You don't have to put your money in places where things like these happen," he explained. "Each of us with investors, we vote with our capital. Why punish a great state because it doesn't happen to be on the east or west coast? I say go to Florida, go to Texas, go to North Dakota, Oklahoma, West Virginia. These are winner states. Why go to a loser state like New York?"

O'Leary then concluded that he believed the ruling would be overturned on appeal at some higher court because of how damaging it would be to business in The Empire State. He said that if the case weren't overruled, it would be a sign to investors to stay away from the Democrat-led state. "Forget about the Trump factor. It's not about that. What does this say to everybody that wants to do work in New York and wants to risk capital?" he said, as reported by Fox News. "This judge arbitrarily decide[d] that this is the right amount. I don't understand it. No developer does."

"It's an atrocity. It's an embarrassment, but it's an assault on real estate," O'Leary concluded.