New York sues Trump over university vowing massive return on cost
By Michael Gormley, APALBANY, New York -- New York's attorney general sued Donald Trump for US$40 million Saturday, saying the real estate mogul helped run a phony “Trump University” that promised to make students rich but instead steered them into expensive and mostly useless seminars, and even failed to deliver promised apprenticeships.
August 26, 2013, 10:47 am TWN
Trump shot back that the Democrat's lawsuit is false and politically motivated.
Attorney General Eric Schneiderman says many of the 5,000 students who paid up to US$35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of “The Apprentice” TV star.
“Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm,” Schneiderman said. “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.”
But Trump's attorney accused Schneiderman of trying to extort campaign contributions from the real estate mogul through his investigation of Trump. Attorney Michael D. Cohen told The Associated Press on Saturday that Schneiderman's lawsuit was filled with falsehoods. Cohen said Trump and his university never defrauded anyone.
He said Trump University provided nearly 11,000 testimonials to Schneiderman from students praising the program and said 98 percent of students in a survey termed the program “excellent.”
“The attorney general has been angry because he felt that Mr. Trump and his various companies should have done much more for him in terms of fundraising,” Cohen said. “This entire investigation is politically motivated and it is a tremendous waste of taxpayers' money.”
State Board of Elections records show Trump has spent more than US$136,000 on New York campaigns since 2010. He contributed US$12,500 to Schneiderman in October 2010, when Schneiderman was running for attorney general, records show. An outspoken conservative, Trump himself flirted with a presidential run last year.