New York State Attorney General Eric Schneiderman alleged on Sunday that Donald Trump's for-profit investment school has engaged in illegal business practices since 2005. According to the attorney general, Trump's investment school had mislead consumers by making them pay for courses while operating without an educational license. Over 5,000 people have paid for these courses, with payments amounting to $40 million--the same amount the filed lawsuit is seeking as restitution.

Many of those who took the courses had the belief that they were attending an actual university, not knowing that the Trump school was an unlicensed institution. Schneiderman's office had also found that Trump was not involved in the selection of instructors and the development of courses.

In a twitter post, Trump said, "Lightweight NYS Attorney General Eric Schneiderman is trying to extort me with a civil law suit," to which Schneiderman responded by saying, "No one, no matter how rich or popular they are, has a right to scam hardworking New Yorkers."