Civil Supreme Court Judge Arthur Schack imposed the penalty Tuesday, the New York Daily News reported. The judge mocked Christopher Earl Strunk's claims.
"I'm going to have this thing overturned and I'm not going to pay a dime," Strunk said after the hearing.
Strunk, a Brooklyn resident, refers to Obama as Barry Soetoro, using the name of his Indonesian stepfather, and the "Usurper" on a Website and suggests Obama is backed by a Jesuit conspiracy. He has filed several lawsuits seeking to have Obama's presidency declared illegitimate.
His New York lawsuit, filed in 2011, named Obama and the New York Board of Elections as defendants. Schack ordered Strunk to pay $167,000 in legal fees to law firms that represented the defendants and an additional $10,000 penalty.
Schack said Strunk's claims are "fanciful, delusional and irrational."
"If the complaint in this action was a movie script, it would be entitled 'The Manchurian Candidate Meets The Da Vinci Code,' " the judge said.