A newly filed lawsuit accuses real estate developer Donald Trump of bilking students of his Trump University confronts the reality TV star with a potentially risky two-front legal battle over his name, reputation and integrity.
The New York state attorney general’s office is suing Donald Trump for $40 million, claiming his for-profit investment school was nothing more than an elaborate bait-and-switch where classes were often just sales pitches for more expensive classes.
Donald Trump baselessly speculated that he was being personally targeted by President Obama through a lawsuit filed by the New York attorney general over allegations that Trump University has engaged in illegal business practices.
Trump is also blaming Schneiderman, claiming that the New York attorney general filed the suit because Trump refused to donate to his campaign.
Schneiderman spokesman Damien LaVera said it’s not unusual for investigation subjects to make wild accusations to distract from the substance of the case.
Trump University LLC was formed in New York in 2004 and was told by state education officials the name was improper because the business wasn’t chartered as a university. It operated as an illegal educational institution whose name wasn’t changed to Trump Entrepreneur Initiative until May 2010.
Trump University’s day-to-day operations were directly managed by Trump’s corporate headquarters firm, and both Trump and Sexton were personally and knowingly involved with the operations of Trump University.
The school received a D-minus rating from the Better Business Bureau, and changed its name to Trump Entrepreneur Initiative in 2010 following complaints from New York and Maryland that using university in its title violated state education laws.