Donald Trump and New York State Attorney General Eric Schneiderman are butting heads. Schneiderman is suing Donald Trump for falsely advertising - his Trump University promised to make those who attended rich - and needless to say, not all students found great fortune. What the University located in the financial mecca of the world, Wall Street, instead delivered was a costly $35,000 entrance fee and expensive seminars. Students hoping to meet Trump never even got the chance to do that. The closest they got to him was a lifesize cutout they took a picture in front of.
“Trump University engaged in deception at every stage of consumers’ advancement through costly programs and caused real financial harm,” Schneiderman was quoted as saying for CBS. “Trump University, with Donald Trump’s knowledge and participation, relied on Trump’s name recognition and celebrity status to take advantage of consumers who believed in the Trump brand.”
Trump says the lawsuit against him is politically motivated. Trump’s lawyer, Michael D. Cohen, said the Attorney General’s lawsuit is a waste of taxpayer's money filled with false allegations. His attorney claims Schneiderman’s lawsuit is biased because he felt Trump could have done more to help his campaign. Trump contributed $12,500 to Schneiderman in 2010.
Schneiderman’s lawsuit says many of the students were unable to land any real-estate deals and were in debt because of his University’s costly entrance fee. The lawsuit goes after the University, its President, and Trump, for engaging in persistent fraud, illegal and deceptive conduct, and violating federal consumer protection law. The case will be handled by the state Supreme Court in Manhattan. Schneiderman hopes the $40 million will pay restitution to any downtrodden former students struggling with debt because of their time at Trump University.
The list of complaints spans from 2005 to 2011. Many were promised Trump Elite mentorships that cost between $10,000 and $35,000. The mentors were supposed to give guidance until a student’s first deal was struck but the mentors never came through. Attorney General Schneiderman also says Trump University failed to cancel memberships so those attending were forced to continue paying fees.
This isn’t even the first time the state went after Trump University. State Education Department officials urged Trump to take the “University” out of the name because his school lacked licenses and legal definitions for it to call itself one. In 2011 it was changed to the Trump Entrepreneur institute.
[Source: CBS]