Trump University Students: Settlement Refusals And Their Stories

In 2018, a $25 million settlement was approved by a federal court for students who said they were scammed by Donald Trump and his now-defunct Trump University. The settlement was first approved by a judge in March 2017, but it was delayed as one woman, Sherri Simpson, wanted to opt out of the class-action suit and pursue separate litigation against Trump. Simpson, who spent $19,000 on Trump University workshops, was rejected by the 9th Circuit Court of Appeals in San Francisco, which finalized the settlement in February 2018.

Students paid between $1,495 and $35,000 for courses

Students paid varying amounts for courses at Trump University, ranging from $1,495 to $35,000. The $1,495 course was advertised as a "one-year apprenticeship", while the $35,000 course was called "Gold Elite". Membership also cost over $10,000.

Trump University was marketed as a program that would teach people how to get rich quickly in the real estate business. Advertisements boasted that clients would make a million dollars in a year by learning from so-called experts who were "hand-picked" by Donald Trump.

Many students never made any profits and instead struggled under debt after maxing out their credit cards during persuasive sales talks to pay for courses.

The university has since been revealed as a sham, with a federal court approving a $25 million settlement to compensate students who were duped by Trump and his now-defunct institution. The settlement was reached after three fraud cases were settled on Trump's behalf, totalling $25 million in restitution and fines.

Instructors used aggressive sales tactics

Trump University, which was open from 2005 to 2010, used high-pressure sales techniques and misleading marketing practices to lure students to free investor workshops, where they were then sold expensive seminars.

The "playbooks" for the now-defunct business owned by Donald Trump offered detailed sales scripts and instructed employees on how to overcome obstacles such as potential customers who had reached their credit card limits or wanted to consult their spouses before buying. The documents outline how employees should guide customers through the "roller coaster of emotions" once they had expressed interest.

According to a Trump University "sales playbook",

> "The motivation that they experienced can die quickly as the realities of their daily lives take over. It is our job to rekindle that motivation... to make them once again see the potential of achieving their dream."

The documents also show meticulous attention to details such as seating at seminars. Room temperature was to be set no higher than 68 degrees Fahrenheit, and music was to be "For the Love of Money" by the O'Jays.

The "playbooks" also instructed staff to target vulnerable people for sales, with a clear effort to identify targets such as single mothers and the elderly. The 2010 Playbook, with the mantra of "One Company. One Culture. One Goal. Achieving Sustained Profitability in 2010," spelled out scripts and sales tactics that preyed on consumers' vulnerabilities.

Instructors were told to target these vulnerabilities, for example: "Are they a single parent of three children that may need money for food?" A former instructor described it as an effort that "preyed upon the elderly and uneducated to separate them from their money."

The same playbook instructed employees to convince customers to use a "technique" called "OPM," or "Other People's Money," as a means of pushing them to use credit upfront. In response to these tactics, one student wrote, "Just teach the topics and stop pushing products and invoking fear. We are not ignorant!"

One former Trump University event manager, Corrine Sommer, testified that her colleagues were trained to ask students to "call their credit card companies and raise their credit limits two, three, or four times so that they would be able to invest in real estate. They would tell students to max out their credit card because they would make their money back." Some were even told to "charge the course to multiple credit cards" or "to open up as many credit cards as they could."

In the end, it's clear that almost all of the Trump University real estate seminar programs were built for sales, not for education, and that staff were provided with strict written scripts and fully orchestrated sales presentations.

Students were pressured to give high ratings

Students of Trump University, which was open from 2005 to 2010, alleged that they were pressured to give high ratings to the university. The university used false advertising and high-pressure sales techniques to lure students to free investor workshops, where they were then sold expensive seminars. Students were told they would be mentored by real estate gurus, which led to the loss of thousands of dollars in tuition.

A "one-year apprenticeship" at the educational institute cost $1,495; a "membership" cost over $10,000; and "Gold Elite" classes ran at $35,000. Many students paid $35,000 for lessons from so-called experts "hand-picked" by Trump, who appeared in adverts boasting that clients would make a million dollars in a year. Many never made any profits and struggled under debt after maxing out their credit cards during persuasive sales talks to pay for courses.

In 2018, a federal court approved a $25 million settlement with students who said they were duped by Donald Trump and his now-defunct Trump University. The settlement resolved lawsuits filed in New York and California that claimed the so-called university failed to deliver on promises to teach people how to get rich quickly in the real estate business.

Trump paid the $25 million in January of 2017, but it was held in escrow until the court upheld the settlement. The court said in its ruling that plaintiffs are expected to receive 80 to 90 percent of what they paid for Trump University programs.

The settlement of $25 million will recover 90% of costs

The $25 million settlement will recover about 90% of the costs incurred by those who attended Trump University, which did not admit any wrongdoing as part of the settlement. The settlement resolves lawsuits filed in New York and California, which claimed that the so-called university failed to deliver on promises to teach people how to get rich quickly in the real estate business.

The university, which was open from 2005 to 2010, was a for-profit series of courses about real estate and entrepreneurship that also pushed people to buy Trump's books. It was not a registered university but a program of seminars marketed to the public and held at local hotels. Many students paid $35,000 for lessons from so-called experts "hand-picked" by Trump, who appeared in adverts boasting that clients would make a million dollars in a year. However, many never made any profits and were left struggling under debt.

The settlement was reached after one victim tried to reject the original deal and pursue her own lawsuit, which would have derailed the settlement. The appeals court rejected this effort, and the settlement was upheld. This meant that thousands of people who attended Trump University would finally get most of their money back.

Trump denies any wrongdoing

In 2016, Donald Trump settled three lawsuits against Trump University for a total of $25 million. The lawsuits alleged that Trump University had defrauded its students through misleading marketing practices and aggressive sales tactics. Despite agreeing to the settlement, Trump denied any wrongdoing.

Trump University was an American company that ran a real estate training program from 2005 to 2010. It was owned and operated by The Trump Organization and founded by Donald Trump, Michael Sexton, and Jonathan Spitalny. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college, and it did not confer degrees or grant college credit.

The lawsuits against Trump University centered on allegations of false advertising and high-pressure sales techniques. Students claimed that they were lured to free investor workshops, where they were then pressured into purchasing expensive seminars and memberships. A "Gold Elite" membership, for example, cost $35,000.

Trump denied any wrongdoing and initially pledged to fight the lawsuits. However, after he won the 2016 presidential election, his lawyers settled the three fraud cases on his behalf. As part of the settlement, Trump did not admit to any wrongdoing.

Trump's denial of wrongdoing is contradicted by evidence and testimonies from former students and employees of Trump University. In a deposition, Trump claimed that he had hand-picked the instructors for the program, but later admitted that he did not know most of them and could not recall their names or roles. Former students also testified that they were pressured to increase their credit card limits and take out multiple credit cards to pay for the expensive courses.

Despite Trump's denial of any wrongdoing, the settlement brought relief to thousands of Trump University students who felt they had been misled and financially harmed by the program.

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