Lawsuit: Trump defrauded investors in marketing scheme

Plaintiffs allege that the investments he backed were a sham

WASHINGTON — Four anonymous plaintiffs filed a class-action lawsuit against President Donald Trump, his business and his three eldest children in federal court Monday, alleging that the Trumps helped promote fraudulent investments.

At issue are promotional spots and speeches Trump made on behalf of marketing company ACN, also known as American Communications Network, which charged $499 for the chance to sell video phones licensed by the company and sometimes extracted thousands of dollars later.

Trump earned $450,000 each for three speeches he gave for ACN, according to his government disclosure form, but in marketing videos he told potential investors that his endorsement was “not for any money.”

The plaintiffs allege that the investments were a sham, and that Trump and his family promoted them — including twice on his TV show “Celebrity Apprentice” — despite knowing they were fraudulent.

In a 164-page complaint filed with the Southern District of New York, the plaintiffs ask for damages, including financial relief, and a ruling barring the Trumps and their company from promoting such offers in the future.

The White House referred questions to the Trump Organization, which called the suit “clearly just another effort by opponents of the President to use the court system to advance a political agenda.”

“Not only are the allegations completely meritless, but they all relate to events which took place nearly a decade ago and are well past the statute of limitations,” the company said.

North Carolina-based ACN, which is not named as a plaintiff in the suit, issued a statement saying that Trump was a “paid keynote speaker” beginning in 2006.