Trump University: Students Fooled By Fake Credentials?

Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company that ran a real estate training program from 2005 to 2010. Despite its name, the organization was not an accredited university or college. It did not confer college credit, grant degrees, or grade its students. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. It was founded in 2004 by Donald Trump, who was US president from 2017 to 2021 and elected again in 2024, and his associates Michael Sexton and Jonathan Spitalny. In 2011, amid multiple investigations, lawsuits, and student complaints, it ceased operations. The company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, resulting in a lawsuit filed in August 2013. Trump University was also the subject of two class actions in federal court, with allegations centering around misleading marketing practices and aggressive sales tactics. Despite Trump's insistence that he would not settle, he settled all three lawsuits in November 2016 for a total of $25 million.

Trump University was a for-profit series of courses about real estate and entrepreneurship

Trump University ran a real estate training program from 2005 to 2010. It was owned and operated by The Trump Organization. The company conducted three- and five-day seminars, often called "retreats", and used high-pressure tactics to sell them to its customers. The instruction typically began with an introductory seminar in rented spaces such as hotel ballrooms. At these introductory seminars, students were urged to sign up for additional classes, ranging from $1,495 seminars to a $35,000 "Gold Elite" program.

The courses claimed to teach attendees Trump's secrets to success in real estate. However, Trump University was the subject of multiple investigations, lawsuits, and student complaints. In 2011, the company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, which resulted in a lawsuit filed in August 2013. The lawsuits centred around allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

In 2016, Trump settled all three lawsuits for a total of $25 million. The settlement specified that Trump did not admit any wrongdoing. Former students could receive a refund of up to 90% of the money they spent on courses.

The company used high-pressure sales tactics to sell seminars to customers

Despite its name, Trump University was not an accredited university or college. It ran a real estate training program from 2005 to 2010 and was owned and operated by The Trump Organization. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. It conducted three- and five-day seminars, often called "retreats", and employed high-pressure sales tactics to sell them to customers.

The seminars were initially offered at a price of $1,495, with additional classes ranging from $10,000 to $35,000 for the "Gold Elite" program. The company used aggressive marketing strategies, preying on vulnerable populations and implying that the seminars offered a fast track to financial success. The sales pitch portrayed Trump as a billionaire who wanted to impart knowledge to the "little guy," and the high prices were justified as a way to ensure that students took personal responsibility for their success.

Trump University employed high-pressure sales tactics to sell its seminars, and its employees were instructed to use hard-sell approaches. The company targeted vulnerable individuals and created the impression that recruiters were friendly advisors. They claimed that Trump had hand-picked the instructors and that the courses would provide exclusive access to his secrets to success in real estate. However, in a 2012 deposition, Trump testified that he had not selected the instructors.

The company faced multiple investigations, lawsuits, and student complaints, eventually ceasing operations in 2011. It became the subject of inquiries by state and federal authorities for illegal business practices, false advertising, and misleading marketing. Students accused Trump University of defrauding them and engaging in aggressive sales tactics.

Students were urged to sign up for additional classes, ranging from $1,495 to $35,000

Students who attended the introductory seminar were urged to sign up for additional classes, which ranged from $1,495 seminars to a $35,000 "Gold Elite" program. The additional classes were marketed as a chance to learn Trump's secrets to success in real estate. Records indicate that 7,611 tickets were sold to customers attending courses. About 6,000 of these tickets were for a $1,500 3-day course, and 1,000 were for silver, gold or elite mentored courses ranging in price from $10,000 to $35,000.

The introductory seminar was often held in rented spaces such as hotel ballrooms. The instruction's focus was on real estate investing, with Trump claiming in advertisements: "I can turn anyone into a successful real estate investor, including you."

While not licensed as a college or using student loans, the operation used many of the same tactics as predatory colleges: preying on vulnerable populations, implying that the school offered a fast track to financial security, and creating the impression that the recruiter is a friendly advisor.

The courses were part of a for-profit series about real estate and entrepreneurship that also pushed people to buy Trump's books.

In 2016, Trump agreed to pay $25 million to settle several lawsuits alleging that his former school for real estate investors defrauded students who paid up to $35,000 to enroll in Trump University programs. The settlement was reached 10 days before the case was scheduled to go to trial. $21 million went to the participants in the class actions, $3 million to New Yorkers not covered by the class actions, and a penalty of up to $1 million was assessed by the state of New York for running an unlicensed university.

The company was subject to multiple investigations, lawsuits, and student complaints

Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company that ran a real estate training program from 2005 to 2010. It was founded in 2004 by Donald Trump, who was US president from 2017 to 2021 and was elected again in 2024, and his associates Michael Sexton and Jonathan Spitalny. Despite its name, the organisation was not an accredited university or college. It did not confer college credit, grant degrees, or grade its students.

Three lawsuits were filed asserting that Trump University had engaged in illegal business practices, ranging from false claims to racketeering. Two were federal class actions: one against Trump University and its managers, and one against Trump himself. A third case was filed in New York State court. In 2005, the New York State Department of Education sent Trump, Sexton, and Trump University a letter stating that they were violating state law by using the word "university" when Trump University was not chartered as one and did not have the required license to offer live instruction or training. Despite this, the instruction continued.

On August 24, 2013, the State of New York filed a $40 million civil suit against Trump University, alleging illegal business practices and false claims made by the company. Trump denied the allegations, claiming the school had a 98% approval rating, and said the attorney general, Eric Schneiderman, was "a political hack looking to get publicity". In October 2014, a New York judge found Trump personally liable for operating the company without the required business license.

In May 2010, the consumer protection division of the state of Texas sought permission from the Attorney General of Texas to sue Trump University, having found the company to be "engaging in false, misleading and deceptive practices" and to have defrauded Texas taxpayers out of $2.6 million. The lawsuit was not filed, but Trump University agreed to cease operations in Texas.

In September 2013, the office of Florida Attorney General Pam Bondi announced it was considering joining a New York lawsuit against Trump University. Four days later, the Donald J. Trump Foundation donated $25,000 to a group supporting Bondi's reelection campaign. After that, Bondi declined to join the lawsuit. In March 2016, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the IRS about the potentially illegal donation.

In 2016, Trump settled three lawsuits for a total of $25 million

Despite its name, the organisation was not an accredited university or college. It conducted three- and five-day seminars, using high-pressure tactics to sell them to its customers. It did not confer college credit, grant degrees, or grade its students.

The three lawsuits filed against Trump University asserted that the organisation engaged in a variety of illegal business practices, ranging from false claims to racketeering. Two were federal class actions: one against Trump University and its managers, and one against Trump personally. A third case was filed in New York State court.

The settlement was announced by New York Attorney General Eric Schneiderman, who said it followed repeated refusals by Trump "to settle for even modest amounts of compensation for the victims of his phoney university." Schneiderman and attorneys for the students praised the deal. Schneiderman said:

> "Today's $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university."

The settlement was paid not by Trump but by his Las Vegas hotel business partner, billionaire Phil Ruffin. Trump himself said he settled "for a small fraction of the potential award" because he was too busy as president-elect to take it to trial.

Frequently asked questions