(Christopher Robbins) New York Attorney General Eric Schniederman is suing Donald Trump and his real estate "university" for defrauding more than 5,000 people of $40 million. "Mr. Trump used his celebrity status and personally appeared in commercials making false promises to convince people to spend tens of thousands of dollars they couldn't afford for lessons they never got," Schniederman says in a release. "No one, no matter how rich or popular they are, has a right to scam hard working New Yorkers. Anyone who does should expect to be held accountable."
According to Schneiderman, Trump's scheme involved getting people to sign up for a $1,495 three-day seminar, which was just a springboard for pitching the "Trump Elite Mentorship" programs that cost $10K to $35K.
In the seminar, participants were allegedly "encouraged to call their credit card companies during breaks, to increase their credit limits to have access to funds to do real estate deals." Naturally, "the real reason Trump University asked consumers to request higher credit limits was so they could use the credit to pay for the expensive Elite programs."
Photo Credit: Getty Images/DEREK BLAIR