A New York Supreme Court judge approved a case that would put to trial Donald Trump's now-closed "Trump Entrepreneur Initiative" formerly known as "Trump University" that offered courses in real estate investment.
The case was filed by Democratic Attorney General Eric Schneiderman in 2013 on behalf of students whom he says were deceived by the "bait-and-switch" tactics employed by the institute to enroll students in expensive seminars. He further alleges that it was unlicensed since it first opened in 2004.
"I am very pleased the judge has indicated her intention to move as expeditiously as possible to trial, as thousands of Mr. Trump's alleged victims have been waiting years for relief from his fraud," Schneiderman said in a statement.
The trial is expected to be held this fall, where Trump may be called in to testify.
Schneiderman wants Trump and the organization to pay back the 5,000 students nationwide as much as $35,000 each they invested in "unlicensed educational institute that promised to teach Donald Trump's real estate investing techniques to consumers nationwide but instead misled consumers into paying for a series of expensive courses that did not deliver on their promises."
A 2014 court decision states that potential students were invited to take part in the free seminar, where "Trump University instructors would recommend signing up for a three-day seminar which cost approximately $1,500 at which the instructors would teach certain real estate strategies," where they would be encouraged to enroll in "Trump Elite Program" for extended mentorships costing $20,000.
He seeks to compel Trump to pay back the 5,000 students about $35,000 each, which they paid to the university as fee and extra expenses incurred for live seminars. The settlement expenses might reach up to $40 million for the defendant.
"We believe that Mr. Trump and Mr. Sexton (university president) will be essential witnesses at trial. As we will prove in court, Donald Trump and his sham for-profit college defrauded thousands of students out of millions of dollars," Schneiderman's statement said.
Trump has maintained that it was an institution that received good reviews by students who gave it 98 percent approval ratings. He has launched a website 98percentapproval.com, which shows positive appraisals provided by students.
Other cases alleging fraud by the institute are Art Cohen v. Donald Trump, and Tarla Makaeff et al. v. Trump University, which pertains to alleged fraud in California, Florida and New York.
"It's a very small case, it's a civil case. It's not a big deal and I will win it in court," Trump said at a rally in March. "It'll cost me more money to win it in court than I could settle for, in my opinion. But I will win it in court."
Trump's side have argued for a trial by jury, but the judge has said that lawyers of both the parties can submit briefs in support of or against holding a jury trial.
