NY sues Donald Trump for $40m over 'phony' university

New York's attorney general has sued Donald Trump for $40 million, saying the real estate mogul helped run a phony "Trump University" that promised to make students rich but instead steered them into expensive seminars, and failed to deliver promised apprenticeships, the Associated Press reports.

Donald Trump pictured earlier this year with his thumbs up. Credit: THE CANADIAN PRESS/Jonathan Hayward

Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump but instead all they got was their picture taken in front of a life-size picture of "The Apprentice" TV star.

Schneiderman said: "Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm.

"Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand."