TODAY   |  August 26, 2013

Donald Trump sued for $40M over Trump University

The attorney general of the state of New York is suing Donald Trump over one of his enterprises, Trump University, calling it fraudulent. NBC’s Jeff Rossen reports.

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This content comes from Closed Captioning that was broadcast along with this program.

>> let's begin with the new trouble for donald trump . new york 's attorney general suing trump calling one of his enterprises a fraud. today jeff rossen has details.

>> good morning. a lot of people talking about this. as we all know donald trump puts his name on everything from buildings to planes. so he created trump university . there's no campus or actual school. it's mostly real estate seminars to help people get rich just like him. but this morning, new york authorities say trump university is a scam. a misleading bait and switch.

>> reporter: this is the trump university recruiting video and it starts with the donald himself.

>> at trump university we teach success. that's what it's all about, success. it's going to happen to you.

>> reporter: and authorities say thousands of people enrolled hoping to learn how to hit it big in real estate . a three day seminar is 1495 , the trump elite package, $10,000 and the personal mentorship, up to $35,000. authorities say trump university made over $40 million.

>> we're going to teach you business. we're going to teach you life. we're going to teach you salesmanship and what you need to know .

>> reporter: but according to this new lawsuit filed by the new york attorney general, trump university engaged in numerous deceptive practices. even encouraging students to go into debt to pay for the elite programs.

>>> according to the complaint, the students were part of an elaborate bait and switch scheme where they kept getting up sold and up sold and up sold and paid more and more money in the hopes of getting the donald trump real estate investment secrets they never got.

>> reporter: trump promises students the best in business education from top experts.

>> these are all people that are hand picked by me.

>> reporter: but the lawsuit claims trump didn't hand pick any of them and many weren't real estate experts at all. sunday trump fought back on twitter and got personal suggesting the ag is suing him as pay back for not giving enough campaign money tweeting light weight new york state attorney general eric snyderman is trying to extort me with a civil lawsuit . how can an attorney general ask for campaign contributions during his evaluation of a case. a total sleezebag. he had no comment on the tweets but insists trump university is a fraud. donald trump says the university has a 98% approval rating among students but the attorney general wants trump to pay back at least $40 million, all of the money that the students paid for that university.