Donald Trump Sued for $40 Million

Aug 26, 2013  •  Post A Comment

Donald Trump has been hit with a $40 million lawsuit by the state of New York, with the state’s attorney general filing the suit against the businessman and his for-profit investment school, reports Reuters.

New York Attorney General Eric Schneiderman is alleging that Trump and his school engaged in illegal business practices, such as making false claims about classes at the school, the story says.

"No one, no matter how rich or popular they are, has a right to scam hard-working New Yorkers," Schneiderman said in a statement.

The Trump Entrepreneur Institute allegedly operated without an educational license from 2005 to 2011, the lawsuit claims. It also allegedly misled consumers about courses that claimed to teach Trump’s investment techniques for real estate, the story says.

The lawsuit alleges that more than 5,000 people enrolled, with tuition payments of $40 million. The state is seeking restitution of that amount, along with disgorgement of profits, penalties and an injunction.

An attorney for Trump didn’t immediately return requests for comment, Reuters reports. But after the lawsuit was disclosed, Trump wrote on Twitter, "Lightweight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit."

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