Donald Trump has been sued by New York Attorney General Eric Schneiderman over claims the billionaire operated a fraudulent online educational institute that swindled students out of $40 million.
Trump University, now known as the Trump Entrepreneur Initiative, operated as an unlicensed educational institution and misled students with promises they would gain real estate investing expertise, according a copy of the petition provided by Schneiderman’s office.
Saturday’s filing was not immediately available from New York Supreme Court in Manhattan.
Students paid as much as $35,000 for the institute’s programs, purportedly taught by experts ‘‘handpicked’’ by Trump, according to the petition. Trump did not select the instructors, many of whom did not have real estate backgrounds or had recently sought bankruptcy because of their real estate investing failures, Schneiderman’s office alleged. Full story for BostonGlobe.com subscribers.