Multimillionaire businessman Donald Trump, who also enjoys being a TV star in “The Apprentice,” has been making headlines in a manner he never wanted to see, as the target of a lawsuit alleging fraud. The Washington Post reported on Aug. 24, 2013, NY AG Schneiderman sues Trump, ‘Trump University’ for fraud; Trump says probe is political.
The attorney general of New York state sued Trump for $40 million on Saturday, saying he helped run a phony “Trump University” which promised to make students rich but instead lead them into expensive and mostly useless seminars, and which even failed to deliver promised apprenticeships.
Trump quickly hit back that the Democrat’s lawsuit is false and has been politically motivated. Nevertheless, Attorney General Eric Schneiderman insists many of the 5,000 students, who paid up to $35,000, thought they would at least meet Trump but instead what they got was their picture taken in front of a life-size picture of “The Apprentice” TV star.
Schneiderman said, “Trump University engaged in deception at every stage of consumers’ advancement through costly programs and caused real financial harm." Reuters has also reported Aug. 24, 2013, the Donald Trump investment school was sued by the New York attorney general. The New York state attorney general has accused Donald Trump's for-profit investment school, Trump University, of engaging in illegal business practices.
Schneiderman has alleged that the Trump Organization company and others made false claims dealing with classes at the school, including that Trump handpicked instructors.
Trump has responded in a post on Twitter, "Light weight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit."