Shark Tank investor Kevin O’Leary has slammed a New York judge’s decision demanding former President Donald Trump to pay $US355 million over a civil fraud case.

“What fraud? This is not about Trump anymore,” O’Leary told CNN host Laura Coates on Monday.

“You get a developer that builds a building and he says it’s worth $400 million, and he wants to borrow $200 million from a bank, which happens every day, everywhere on earth.”

O’Leary argued that banks should discern the legitimacy of financial claims instead of penalising developers for overestimations.

The Canadian investor and businessman also expressed concerns that the decision could discourage investors from taking risks in the state.

“If we’re going to do that, let’s penalise all the developers all across America. They’ve all done the same thing,” he said.

“All of them should go to jail and we should stop building buildings. That’s what the message is from New York.”

He added that New York is slowly becoming the “number one loser state in America”.