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Trump University fraud claim revisited by New York appeals court Trump University fraud claim revisited by New York appeals court
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A New York appeals court on Tuesday has reopened a fraud claim brought by the state’s attorney general against Trump University, the for-profit online education outfit owned and founded by billionaire presidential candidate Donald Trump.A New York appeals court on Tuesday has reopened a fraud claim brought by the state’s attorney general against Trump University, the for-profit online education outfit owned and founded by billionaire presidential candidate Donald Trump.
The ruling that the fraud suit against Trump University for “deceptive and unlawful practices” could proceed, came in a case New York attorney general Eric Schneiderman filed against the Trump venture in 2013, in which Trump University was accused of misleading customers into paying for services they believed were provided by an accredited university. Trump University, now known as the Trump Entrepreneur Initiative, is not and has never been an accredited university or college, and has never conferred degrees to its paying customers. The ruling that the fraud suit against Trump University for “deceptive and unlawful practices” could proceed came in a case New York attorney general Eric Schneiderman filed against the Trump venture in 2013, in which Trump University was accused of misleading customers into paying for services they believed were provided by an accredited university. Trump University, now known as the Trump Entrepreneur Initiative, is not and has never been an accredited university or college, and has never conferred degrees to its paying customers.
“We started looking at Trump University and discovered that it was a classic bait-and-switch scheme,” said Schneiderman at the time of the suit’s original filing in 2013. “It was a scam, starting with the fact that it was not a university.”“We started looking at Trump University and discovered that it was a classic bait-and-switch scheme,” said Schneiderman at the time of the suit’s original filing in 2013. “It was a scam, starting with the fact that it was not a university.”
Schneiderman further claimed that Trump University had misinformed its customers by leading them to believe that they were to be mentored by instructors handpicked by Trump himself, that the three-day seminar would include “access to ‘private’ or ‘hard money’ lenders and financing,” a “year-long ‘apprenticeship support’ program,” and that it would “improve the credit scores” of students. Schneiderman further claimed that Trump University had misinformed its customers by leading them to believe that they were to be mentored by instructors handpicked by Trump himself, that the three-day seminar would include “access to ‘private’ or ‘hard money’ lenders and financing”, a “year-long ‘apprenticeship support’ program”, and that it would “improve the credit scores” of students.
The lawsuit accused the venture of using “bait and switch” tactics to steer enrollees into higher cost seminars, in which customers were pressured to sign up for courses on real estate, asset management, entrepreneurship and wealth creation, each of which charged fees ranging from $1,500 to $35,000.The lawsuit accused the venture of using “bait and switch” tactics to steer enrollees into higher cost seminars, in which customers were pressured to sign up for courses on real estate, asset management, entrepreneurship and wealth creation, each of which charged fees ranging from $1,500 to $35,000.
“If you don’t learn from them, if you don’t learn from me, if you don’t learn from the people that we’re going to be putting forward, and these are all people handpicked by me, then you’re just not going to make it in terms of world-class success,” Trump said in one of Trump University’s infomercials.“If you don’t learn from them, if you don’t learn from me, if you don’t learn from the people that we’re going to be putting forward, and these are all people handpicked by me, then you’re just not going to make it in terms of world-class success,” Trump said in one of Trump University’s infomercials.
In 2012, Trump testified in a deposition that he neither selected Trump University instructors nor oversaw program’s curriculum, despite public statements to the contrary. In 2012, Trump testified in a deposition that he neither selected Trump University instructors nor oversaw the program’s curriculum, despite public statements to the contrary.
Trump, now the leading candidate for the Republican party’s presidential nomination, has dismissed the suit, telling a rally in Bentonville, Arkansas, on Saturday that the presiding judge has been unduly harsh on him because of his comments regarding undocumented immigrants.Trump, now the leading candidate for the Republican party’s presidential nomination, has dismissed the suit, telling a rally in Bentonville, Arkansas, on Saturday that the presiding judge has been unduly harsh on him because of his comments regarding undocumented immigrants.
“There is a hostility toward me by the judge - tremendous hostility - beyond belief,” Trump said. “I believe he happens to be Spanish, which is fine. He’s Hispanic, which is fine. And we haven’t asked for a recusal, which we may do. But we have a judge who’s very hostile.” “There is a hostility toward me by the judge – tremendous hostility – beyond belief,” Trump said. “I believe he happens to be Spanish, which is fine. He’s Hispanic, which is fine. And we haven’t asked for a recusal, which we may do. But we have a judge who’s very hostile.”
Trump University has been the subject of a series of anti-Trump political advertisements ahead of Super Tuesday, with a super PAC that once supported Mitt Romney’s campaign for the White House releasing ads detailing the stories of people who had been “duped by the Donald”. Trump University has been the subject of a series of anti-Trump political advertisements ahead of Super Tuesday, with a Super Pac that once supported Mitt Romney’s campaign for the White House releasing ads detailing the stories of people who had been “duped by the Donald”.
The lawsuit is seeking restitution of at least $40m.The lawsuit is seeking restitution of at least $40m.