Republican presidential front-runner, Donald Trump, is facing raps for alleged fraud before the New York State court. Prosecution against the business tycoon is incited by fraud claims against the now defunct Trump University which he owns. The four-judge panel junked Trump's bid to dismiss the suit.  

The case is filed by the Attorney General Eric Schneiderman in 2013 and is part of a lawsuit claiming that Trump used the school to mislead thousands of people who paid $35,000 to learn about Trump's real estate investment strategies, Reuters reported. The lawsuit is aiming to get $40 million in restitution plus corresponding penalties and other costs.

"Today's decision is a clear victory in our effort to hold Donald Trump and Trump University accountable for defrauding thousands of students," Schneiderman told Fox News.

Schneiderman allege that the school failed to deliver on its promise to make its students successful in the real estate field with its programs. The plaintiffs claim that all they got were generic hotel seminars and field trips to sketchy places that never told them how they could legitimately make profit. Likewise, students also claimed that they were pressured to shell out cash for additional classes with the pitches given by the school's salesmen.

Trump lawyers argue that the lawsuit should be dismissed because the statute of limitations for filing the claim has already expired, Time reported. In a separate news by Daily news, some of the claims were indeed barred to push through due to the three-year statute of limitations save for the fraud claims.

Trump defended himself on national television by saying that 98 percent of those who took courses in Trump University "thought they were terrific." He said that he is confident that his camp will win the case.

Meanwhile, the state court earlier held Trump University to be liable for its illegal operations in New York from 2005 to 2011.