Lana Oconnell
Trump University, founded in 2004 by Donald Trump, Michael Sexton, and Jonathan Spitalny, was an American company that offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college, and it ceased operations in 2011 amid multiple investigations, lawsuits, and student complaints. The lawsuits centered on allegations of defrauding students through misleading marketing practices and aggressive sales tactics. In 2016, Trump settled three lawsuits for a total of $25 million, but the question remains: how many students from Trump University received compensation or refunds as a result of these settlements?
| Characteristics | Values |
|---|---|
| Number of students getting paid back | Thousands |
| Amount paid back | $25 million |
| Reason for refund | Trump University was accused of defrauding its students by using misleading marketing practices and engaging in aggressive sales tactics |
| Year of settlement | 2016 |
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What You'll Learn
Trump University was not an accredited university or college
Despite its name, Trump University was not an accredited university or college. It was an American company founded in 2004 by Donald Trump and his associates Michael Sexton and Jonathan Spitalny. It offered courses in real estate, asset management, entrepreneurship, and wealth creation.
Trump University was incorporated as a New York limited liability company, with Trump owning 93% of the company. It was owned and operated by The Trump Organization. The company's original business plan focused on online education, but it quickly expanded to include live, in-person instruction. The instruction's focus was on real estate investing, with Trump claiming in advertisements that he could "turn anyone into a successful real estate investor".
Trump University conducted three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to customers. These seminars were not approved by the Texas Real Estate Commission, and the organization did not have the legal credentials to call itself a "university." It did not confer college credit, grant degrees, or grade its students.
The company became the subject of multiple investigations, lawsuits, and student complaints, including allegations of misleading marketing practices and aggressive sales tactics. In 2011, it ceased operations amid these controversies.
Trump University is a notable example of an unaccredited institution that faced legal repercussions for its misleading practices. The discussion of accreditation is particularly relevant in the context of President Donald Trump's executive orders related to education, which include changes to college accreditation and civil rights rules.
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Students paid high prices for seminars and programs
Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company founded in 2004 by Donald Trump and his associates Michael Sexton and Jonathan Spitalny. It offered courses in real estate, asset management, entrepreneurship, and wealth creation.
Despite its name, Trump University was not an accredited university or college. It conducted three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to customers. The instruction typically began with an introductory seminar in rented spaces such as hotel ballrooms. At these seminars, students were urged to sign up for additional classes, with prices ranging from $1,495 to a $35,000 "Gold Elite" program.
Records indicate that 7,611 tickets were sold to customers attending courses. About 6,000 of these 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 high prices for these seminars and programs were justified by teachers as a way to make students assume personal responsibility for doing the work rather than enriching Trump.
Trump University's marketing and sales tactics were the subject of multiple investigations, lawsuits, and student complaints. One lawsuit proposed by the consumer protection division sought to recover more than $2.6 million that Texas taxpayer students had spent on seminars and materials, plus an additional $2.8 million in penalties and fees. Tarla Makaeff, who paid nearly $60,000 to Trump University in 2008, brought a class action lawsuit against the organization in April 2010.
In 2011, Trump University ceased operations amid the ongoing controversies and legal issues.
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Trump University was the subject of multiple lawsuits
Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company founded in 2004 by Donald Trump and his associates Michael Sexton and Jonathan Spitalny. It 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 college credit, grant degrees, or grade its students.
One of the lawsuits was proposed by the consumer protection division, which sought to recover more than $2.6 million that Texas taxpayers, who had been students at Trump University, had spent on seminars and materials. The investigation was dropped and no lawsuit was filed, but Trump University agreed to cease operations in Texas.
Tarla Makaeff, who paid nearly $60,000 to Trump University in 2008, brought a class-action lawsuit against the company in April 2010. The suit sought refunds for Makaeff and other former clients, as well as punitive damages for breach of contract, fraud, negligent misrepresentation, and bad faith.
Trump University was also the subject of two class actions in federal court, one against Trump University and its managers, including Trump, and one against Trump personally. A third case was filed in New York State court. In total, there were three lawsuits asserting that Trump University engaged in illegal business practices, ranging from false claims to racketeering. Despite insisting he would not settle, Trump settled all three lawsuits in November 2016 for a total of $25 million after being elected president.
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Trump University ceased operations in 2011
Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company founded in 2004 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 college credit, grant degrees, or grade its students.
The company's original business plan focused on online education, but it quickly expanded to include live, in-person instruction. The instruction primarily focused on real estate investing, with Trump claiming in advertisements that he could "turn anyone into a successful real estate investor".
Trump University was the subject of multiple investigations, lawsuits, and student complaints. Students alleged that the company engaged in misleading marketing practices and aggressive sales tactics. One student, Tarla Makaeff, paid nearly $60,000 to Trump University in 2008 and brought a class action lawsuit against the company in 2010. The company was also investigated by the consumer protection division, which sought to recover more than $2.6 million for Texas taxpayers who had been students at Trump University.
Amid the legal troubles and negative attention, Trump University ceased operations in 2011. Despite Trump's repeated insistence that he would not settle, he eventually settled all three lawsuits in November 2016, after being elected president, for a total of $25 million.
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Students will get most of their money back
Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company founded in 2004 by Donald Trump and his associates, Michael Sexton and Jonathan Spitalny. It offered courses in real estate, asset management, entrepreneurship, and wealth creation. However, despite its name, it was not an accredited university or college. The "university" did not confer college credit, grant degrees, or grade its students.
Trump University was the subject of multiple investigations, lawsuits, and student complaints, including allegations of misleading marketing practices and aggressive sales tactics. In one instance, a consumer protection investigation in Texas sought to recover $2.6 million in tuition fees and an additional $2.8 million in penalties and fees from Trump University. While the investigation was dropped and no lawsuit was filed, Trump University agreed to cease operations in Texas.
Amid the multiple controversies, Trump University ceased operations in 2011. In 2016, following Trump's election as President, he settled three lawsuits against Trump University for a total of $25 million. While the details of the settlement are not publicly available, it is reasonable to assume that a significant portion of the settlement involved reimbursing students for their tuition fees and other expenses incurred while attending Trump University.
Therefore, while the exact number of students who received refunds is not known, it is safe to say that many students from Trump University got most of their money back through the lawsuits and settlements.
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Frequently asked questions
Trump University was an American company founded in 2004 by Donald Trump and his associates Michael Sexton and Jonathan Spitalny. It offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college.
Trump University was the subject of two class actions in federal court. The lawsuits alleged that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.
Trump settled all three lawsuits in November 2016 for a total of $25 million after being elected president.
The consumer protection division sought to recover more than $2.6 million that Texas taxpayers, who were students at Trump University, had spent on seminars and materials, plus another $2.8 million in penalties and fees.
The investigation was dropped, and no lawsuit was filed. However, Trump University agreed to cease operations in Texas.
