Donald Trump is being sued for $40 million over his for-profit investment tool called Trump University. The lawsuit was filed by the New York state attorney general for alleged fraud.
The lawsuit alleges that Trump ran the phony university that promised to make its students rich. Instead, it enrolled them in expensive and mostly useless seminars.
Attorney General Eric Schneiderman stated in the suit that as many as 5,000 students of the university paid up to $35,000 to attend the seminars, reports Fox News.
Some of the students believed they would at least meet Donald Trump in the process. However, the closest they got was having their picture taken with the real estate mogul’s life-size picture.
Schneiderman stated, “Trump University engaged in deception at every stage of consumers’ advancement through costly programs and caused real financial harm.” He added that the organization relied on Trump’s name and celebrity status to take advantage of its customers.
Trump and his attorney have responded with less than nice things to say about Schneiderman. The Huffington Post notes that Trump’s attorney, Michael D. Cohen, accused the New York attorney general of trying to extort campaign contributions from Trump. He added that Trump and his university never defrauded any customers.
Cohen went on to say that Trump University has provided testimonials from nearly 11,000 people who praised the program, which has a 98 percent approval rating. He added, “Donald Trump will not sit back and be extorted by anyone, including the attorney general.”
The lawsuit claims that many of the Trump University students failed to land one real estate deal. It also alleges that many of them were left worse off than they were before the lessons. They reportedly faced thousands of dollars in debt for the program, which was once billed as a top quality university with instructors hand-picked by Donald Trump.
The lawsuit between New York and Donald Trump will be heard in state Supreme Court in Manhattan.