Kris Jenner, the Kardashian matriarch, has apparently decided that the Legacy Business School is more trouble than it's worth, and she no longer wants to be the operation's chairman of the board. She stepped into the role early in 2016, but the school never received permission from the state to grant degrees, reports the Daily Beast.
Officials from New York Department of Education have now reportedly referred information about the school to the fraud unit of the New York Attorney General's Office for possible action for allegedly advertising degrees that it cannot legitimately grant.
A spokesperson for Attorney General Eric Schneiderman told the Daily Beast that his office is "reviewing the matter".
Tuition for the school, based in Trump Tower, which is supposed to start operating in autumn 2016, can reportedly run as high as $105,000 (£80,000) a year, more than twice some of the most expensive universities in the US.
The school has been hit with lawsuits in the US and abroad over the last ten years under a different name, the European School of Economics, the Daily Beast reported.
Jenner claimed she is backing out because of too many demands on her time. "Kris is honored that the Legacy Business School invited her to assist the school in its mission to provide students with real world experience," said a statement provided to the Beast.
"However, due to her many time commitments, she is unable to commit the necessary time in support of the school and is no longer involved."
Jenner seems to have taken a page from the money-making playbook of Republican presidential candidate Donald Trump, who started a similar "school" — Trump University.
But he also ran into the same problems Jenner's operation is having. State officials also claimed Trump failed to get permission from the Department of Education to run a legitimate school, yet his "university" also promised degree-like certificates for top dollar.
Trump University became a target of an investigation by the state attorney general, and is facing civil fraud lawsuits by students and workers. When certain rulings in those ongoing suits didn't go Trump's way earlier this year, he accused federal Judge Gonzalo Curiel, whose parents are Hispanic, of holding a grudge against him because of Trump's comments calling Mexican immigrants rapists and criminals.