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NEW YORK (AP) -- Donald Trump has said Miss California USA, Carrie Prejean, (pray-ZHAHN'), can retain her crown.

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Trump, who owns the Miss USA pageant, made the announcement Tuesday at Trump Tower in New York City.

The 21-year-old Prejean failed to reveal before last month's Miss USA pageant that she had posed in her underwear as a teenager.

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Trump says the pageant has determined the photos are "fine."