NY's Trump U. suit dogs GOP front-runner
ALBANY - It all started with a free, 90-minute seminar.
From there, those who attended Trump University -- Republican presidential front-runner Donald Trump's now-defunct, for-profit seminar series -- faced an sales pitch: First for a three-day, $1,495 seminar, then for more-expensive tiers, all the way up to a $35,000, yearlong "mentorship" program.
That's how state Attorney General Eric Schneiderman claims Trump University built up its customer base, along with promises of sessions led by real-estate "experts" who were "hand-picked" by Trump.
But Trump University, which ultimately changed its name to the Trump Entrepreneurship Initiative in 2010, wasn't an accredited university at all. And, according to Schneiderman, the instructors had little real-estate experience, nor were they picked by Trump, who had little to do with the program's day-to-day operations.
"You're allowed to run seminars, but you're not allowed to commit fraud," Schneiderman said Friday on CNN's "New Day." "If you tell people 'We're going to teach you Donald Trump's secrets' and he's never had any part in writing the curriculum, that's fraud."
A 2013 lawsuit filed by the attorney general's office has quickly jumped to the center of the campaign trail in recent weeks as Trump's GOP opponents have sought to use it against him, with Florida Sen. Marco Rubio repeatedly likening the real-estate developer to a "con artist" during Thursday's GOP debate.
Schneiderman claims Trump University, which launched in 2005, amounted to nothing more than a "bait-and-switch scheme" that bilked 5,000 people, including more than 600 New Yorkers, out of upwards of $40 million. The seminars, according to Schneiderman, drew customers in by promising they would learn Trump's real estate techniques and secrets despite Trump having no hand in penning the curriculum.
Andreatta: My brush with Trump University
Trump, meanwhile, has maintained he won't settle the case and is determined to win in court.
In Thursday's Fox News debate, Trump repeated his defense of the program: That it was highly rated by its customers and the Better Business Bureau. According to PolitiFact, Trump University received ratings ranging from A+ through D- from the BBB throughout its existence.
Trump, who often claims the program had an A rating, said he will be victorious in court.
"I don't settle cases," Trump said. "I don't do it because that's why I don't get sued very often, because I don't settle, unlike a lot of other people. We have a situation where we will win in court."
Schneiderman's suit picked up a boost in a state appeals court earlier this week, which allowed its fraud claims to proceed in full. The lawsuit seeks refunds for 5,000 customers as well as fines that would go to the state coffers, liabilities Schneiderman said total tens of millions of dollars.
Trump and his allies have accused Schneiderman of being politically motivated, accusing him of soliciting donations from Trump's daughter and son-in-law not long before he filed the suit.
Schneiderman said his suit has nothing to do with politics, noting that it was filed in 2013 -- long before Trump made his run for president official.
He said the fraud claims get at the question of Trump's "credibility" as a presidential candidate.
"If you're talking about someone who you're looking to be president, I think the issue of credibility is very important," Schneiderman said on CNN. "And this is a case that is not even a complicated fraud."
During Thursday's debate, Trump sought to downplay the lawsuits. Two others are pending, including a class-action suit in California.
"You know what, let's see what happens in court," Trump said. "This is a civil case. Very easy to have settled. Could settle it now. Let's see what happens at the end of a couple years when this case is over, OK?"