Lawsuit: Trump misled investors in money-losing company
NEW YORK (AP) — President Donald Trump is accused in a lawsuit of misleading investors who lost money in a multi-level marketing company he endorsed in speeches and on “The Celebrity Apprentice.”
The suit filed Monday in Manhattan federal court alleges the president received millions of dollars in exchange for reassuring investors in telephone company ACN there was little risk if they paid fees and incurred other expenses to start selling its phone service to others. The suit says Trump knew the salespeople had little chance of recouping their money and falsely claimed he had done extensive due diligence on the company.
The suit filed by four investors says Trump violated federal anti-racketeering law and is seeking class-action status.
The Trump Organization did not immediately respond to phone and email requests for comment.