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The $40 million lawsuit Donald Trump is facing for operating a phony university highlights how for-profit colleges are increasingly under a microscope and, in some cases, in the cross hairs of federal prosecutors, state attorney generals, and disillusioned students.
Over the weekend and yesterday New York Attorney General Eric Schneiderman filed a suit against Trump, Trump University and former president of Trump U Michael Sexton for misleading more than 5,000 customers across the country into buying expensive courses to learn the billionaire developer’s real estate investing secrets and techniques. Instead, the AG alleges Trump U’s seminars and mentorship programs failed to deliver on their widespread marketing campaign: “Just copy exactly what I’ve done and get rich.”
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AP Photo/Bebeto Matthews Trump U
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Trump U
FILE- In this May 23, 2005 file photo, real estate mogul and Reality TV star Donald Trump, left, listens as Michael Sexton introduces him at a news conference in New York where he announced the establishment of Trump University. New York Attorney General Eric Schneiderman is suing Trump for $40 million, saying that Trump University didn t deliver on its advertised promise to make students rich, but instead steered them into expensive yet mostly useless seminars. (AP Photo/Bebeto Matthews, File)
Trump, uncharacteristically defensive, has labeled the “frivolous suit” “thug politics” by a “lightweight” “political hack.” He took to the waves (Fox & Friends, Morning Joe, Twitter), countering that the people who signed up and paid for his courses gave him a 98% approval rating. Yesterday he launched 98percentapproval.com, a site that offers such testimonials as “Great presentation!” and “Thank you for a great, informative, energizing, helpful, practical & fun seminar.” All reviews are vaguely ID’d only by initials.
Trump has always brawled in a big, bad, hyped-up way, whether it’s challenging President Obama’s birth certificate, hating on Rosie O’Donnell or tussling with Scottish officials over proposed wind turbines overlooking his new golf course. Only this time, his opponents are consumers who have risked thousands of dollars for not much more, according to Schneiderman, than diploma-like Certificates of Completion with Trump’s signature and an opportunity to have their picture taken with a life-size photo of the celebrity billionaire valued at $3.2 billion.
