By Lara Seligman - 08/26/13 12:02 PM EDT
Trump's comments come as New York Attorney General Eric Schneiderman filed suit against Trump on Saturday for $40 million, accusing him of defrauding more than 5,000 people across the nation through Trump University.
“Trump University engaged in deception at every stage of consumers' advancement through costly programs and caused real financial harm,” Schneiderman said, according to reports.
“Trump University, with Donald Trump's knowledge and participation, relied on Trump's name recognition and celebrity status to take advantage of consumers who believed in the Trump brand.”
Schneiderman, a Democrat, accused Trump of engaging in a “bait and switch.”
Many of the students paid up to $35,000, Schneiderman said, and all they got was their picture taken with a life-size picture of Trump.
The organization that billed itself as Trump University was put on notice in 2005 by the state Education Department that it was not licensed to call itself a university.
Trump said the lawsuit was filed after Schneiderman met with President Obama last week, suggesting a link between the White House and the allegations.
Schneiderman responded Monday on CNN's “New Day” that Trump's accusations are an effort to distract from the substance of the lawsuit.
“Prosecutors are all used to people who commit fraud making wild accusations when they are caught,” Schneiderman said. “The substance of the case he has not rebutted in any way, shape or form.”
Schneiderman added that he has never discussed Trump with the president.
“The president and I had much more important stuff to talk about than Donald Trump,” he said on CNN.