New York Sues Donald Trump for $40 Million
New York Attorney General Eric Schneiderman has filed a lawsuit against real estate mogul Donald Trump and Trump University for $40 million Saturday, alleging that the school engaged in a "bait and switch." The fraud case will be heard in state Supreme Court in Manhattan.
Trump appeared in advertisements that ran across the country offering free workshops. High pressure methods were used to sign people up for a three-day seminar for $1,495, with the insinuation that Trump would be involved.
Students were then pressured to pay $10,000 - $35,000 for a "Trump elite mentorship program."
The closest students got to university chairman Trump was to have their picture taken with his cardboard likeness. Most never closed a single real estate deal.
New York's AG said, "Trump University engaged in deception at every stage of consumers advancement through costly programs and caused real financial harm. Trump University, with Donald Trump's knowledge, relied on his name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."
The $40 million that the AG is going after will be used to pay restitution to consumer victims.
In true Trump fashion, the mogul hit Twitter to trash Schneiderman, "Lightweight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit."