Thursday’s Good Morning America featured the Democratic Attorney General of New York, Eric Schneiderman, who has led the charge on the 2013 Trump University case in the state. The prominent Clinton supporter insisted to co-host George Stephanopoulos (who is also a notorious Clinton Foundation donor) that the case was “not political!”
In 2013, Schneiderman filed a $40 Million lawsuit against Donald Trump and The Trump Entrepreneur Institute formerly known as “Trump University” as well as Michael Sexton, former President of Trump University. This morning when asked by George Stephanopoulos what specific laws were broken, he insisted that Trump U was a fraud from beginning to end.
GEORGE STEPHANOPOULOS: So which specific laws did he break?
ERIC SCHNEIDERMAN: In New York we have laws against business fraud, we have laws against consumer fraud. We have a law against running an illegal unlicensed university. This never was a university. The fraud started with the name of the organization and you can't just go around saying this is the George Stephanopoulos law firm hospital university without actually qualifying and registering, so it was really a fraud from beginning to end.
One can’t imagine a “George Stephanopoulos law firm hospital university” would garner as much interest as did Trump University. However, what is more intriguing than Schneiderman’s vendetta against Trump University are his inseparable ties to Hillary Clinton. Not only has Schneiderman contributed to Clinton’s campaigns over the years, but he is a member of her leadership council. Yet, the Attorney General insisted that this case is not political.
STEPHANOPOULOS: You sent out an e-mail from your re-election campaign on this issue yesterday. You're a member of Hillary Clinton's leadership council, you’ve contributed to her campaigns. Doesn't that feed the Trump's team claim that this is all politics?
SCHNEIDERMAN: Not at all. The case was brought in August of 2013 after over a year of investigation and extensive negotiations with Trump. Um. If I had come on your show and said in August 2013 he would be the Republican nominee for president you probably would never have invited me back again. This is not a political case . It's a straight up fraud case.
Stephanopoulos then brought up speculation that back in 2011, Schneiderman had spoken to Trump about the possibility that he would be a national candidate. When Stephanopoulos pressed the issue, Schneiderman stumbled on his answer.
STEPHANOPOULOS: Although before you brought it you were talking about in 2011 I think about the possibility that Trump had called you and said he was going to be a national candidate.
SCHNEIDERMAN: Hmm. No, he really, he was -- he's -- well, I, I, Mr. Trump says a lot of things at a lot of points in time, but I assure you in the summer of 2013 this was just a fraud case. We were bringing cases against different for profit colleges. This one stuck out like a sore thumb. Because there really was - uh - uh - it was remarkable. The New York State Department of Education was chasing them around telling them you can't hold yourself out as a university. They kept pretending they were going to change their name or move out of New York. Uh. This was just a scam.
While we have yet to see whether Trump will come out of this fraud case unscathed, the real concern is the Attorney General’s denial that his efforts are void of political motivation. From Schneiderman’s frequent statements about Trump’s credibility to his flagrant ties with Hillary Clinton, there certainly appears to be a major conflict of interest here.
View the Full Transcript Here:
06-02 ABC - Good Morning America
7:05:48 AM - 7:08:55 AM
GEORGE STEPHANOPOULOS: We're joined now by the Attorney General of New York, Eric Schneiderman, who’s brought one of the suits against Trump University. Thank you for joining us this morning. You saw those testimonials right there at the end and the Trump team says that the overwhelming majority of students were satisfied. That's one reason he says he's going to win this case.ERIC SCHNEIDERMAN: Well, he keeps saying he's going to win the case but he keeps losing motions, and all of this has been presented to the court in the two cases in California and my case in New York, and they did have some students who filled out questionnaires that were not anonymous with the instructors looming over them. This is all been presented to the court. That does – it’s no defense to fraud. They told people hand picked instructors by Donald Trump would teach them his personal secrets. He never met the instructors. He and the president of the university have testified to that under oath. He never participated in writing the curriculum. That has been testified to under oath. So, the fact they can find a few to put on TV, it’s just not a defense in a court of law.
STEPHANOPOULOS: So which specific laws did he break?
SCHNEIDERMAN: In New York we have laws against business fraud, we have laws against consumer fraud. We have a law against running an illegal unlicensed university. This never was a university. The fraud started with the name of the organization and you can't just go around saying this is the George Stephanopoulos law firm hospital university without actually qualifying and registering, so it was really a fraud from beginning to end.
STEPHANOPOULOS: Trump has also claimed that this at the beginning that this was a philanthropic venture.
SCHNEIDERMAN: Well, if it was a philanthropic venture he certainly made out well from the philanthropic venture. The initial estimates are that he personally pocketed $5 million from this.
STEPHANOPOULOS: Can you prove that?
SCHNEIDERMAN: We're going to get more information when we get to the damages phase of the trial, but we're confident that he didn't do this for free.
STEPHANOPOULOS: You sent out an e-mail from your re-election campaign on this issue yesterday. You're a member of Hillary Clinton's leadership council, you’ve contributed to her campaigns. Doesn't that feed the Trump's team claim that this is all politics?
SCHNEIDERMAN: Not at all. The case was brought in August of 2013 after over a year of investigation and extensive negotiations with Trump. Um. If I had come on your show and said in August 2013 he would be the Republican nominee for president you probably would never have invited me back again. This is not a political case . It's a straight up fraud case.
STEPHANOPOULOS: Although before you brought it you were talking about in 2011 I think about the possibility that Trump had called you and said he was going to be a national candidate.
SCHNEIDERMAN: Hmm. No, he really, he was-- he's -- well, I, I, Mr. Trump says a lot of things at a lot of points in time, but I assure you in the summer of 2013 this was just a fraud case. We were bringing cases against different for profit colleges. This one stuck out like a sore thumb. Because there really was - uh - uh - it was remarkable. The New York State Department of Education was chasing them around telling them you can't hold yourself out as a university. They kept pretending they were going to change their name or move out of New York. Uh. This was just a scam.
STEPHANOPOULOS: So where does this go next? If, if, if, if Donald Trump actually wins the White House in November, could he be called to testify as a sitting president?
SCHNEIDERMAN: Sure, he doesn't have immunity from civil fraud trials. He owes. Thousands of people paid millions of dollars believing that he would teach them his real estate secrets. And we know from his own sworn testimony, and the testimony of the university president, that he didn't write the curriculum. None were his secrets. So he bilked people out of millions out of dollars, we're going to make sure he pays it back.
STEPHANOPOULOS: Eric Schneiderman, thanks for joining us this morning.
