Business Tycoon and Billionaire, Donald Trump, is being sued by the N.Y. Attorney General,, Eric Schneiderman, for allegedly running an online educational institute which was fraudulent. According to yesterday’s filing in the New York Supreme Court in Manhattan, the online scam conned students out of a total of $40 million.
The online Trump University made big promises to unwitting students, who were guaranteed that they would gain expertise in real estate investing. The students paid up to $35,000 for the programs, which they were told they were being taught by experts who were “handpicked” by Trump.
According to the petition, Trump, did not select the teachers on the programs, which ran from 2005 through 2011. It is even reported that many of them didn’t have any background in real estate. The petition against Donald Trump states that the students were told that they would easily be able to make back the money they laid out for the programs, although many of them were not able to secure even one deal.
The Attorney General said in a statement today: “Mr. Trump used his celebrity status and personally appeared in commercials making false promises to convince people to spend tens of thousands of dollars they couldn’t afford for lessons they never got.”
In response to the serious allegation levelled against him, Trump’s spokeswoman, Amanda Miller, referred questions to the www.98percentapproval.com website. This is a site entirely devoted to criticism of the New York Attorney General.
She said that surveys confirm the fact that “98 percent of Trump University students rated the program ‘excellent’ while only 4 percent of New York State registered voters rated Attorney General Eric Schneiderman’s performance as ‘excellent’. She added the survey site also states,”Schneiderman thinks he could be the next governor? He must be joking.”
It remains to be seen what will be the result of the lawsuit brought against Trump and the online Trump University. It also remains to be seen if the move by the New York Attorney General’s office is politically motivated, as Donald Trump claims.