Lana Oconnell
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. It was not an accredited university or college, and it did not confer college credit, grant degrees, or grade its students. Despite this, it had around 7,000 students, including 6,000 from New York, who spent a total of $364 million on seminars and materials. In 2011, amid multiple investigations, lawsuits, and student complaints, Trump University ceased operations.
| Characteristics | Values |
|---|---|
| Year founded | 2004 |
| Founders | Donald Trump, Michael Sexton, and Jonathan Spitalny |
| Courses offered | Real estate, asset management, entrepreneurship, and wealth creation |
| Year of real estate training program operation | 2005 to 2010 |
| Year of ceasing operations | 2011 |
| Number of Texan students | 2,080 |
| Amount spent by Texan students | $2.6 million |
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What You'll Learn
Trump University was not an accredited institution
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 was owned and operated by The Trump Organization. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, Trump University was not an accredited university or college. It did not have the legal credentials to call itself a "university" and did not confer college credit, grant degrees, or grade its students.
In 2005, the New York State Department of Education sent a letter to Trump, Sexton, and Trump University stating that they were violating state law by using the word "university" when Trump University was not chartered as one and lacked the required license to offer live instruction or training. Despite this warning, the organization continued to operate and offer its real estate training program until 2010.
Trump University faced multiple lawsuits and student complaints, with allegations of misleading marketing practices, aggressive sales tactics, and false claims about the nature of its courses. In 2016, Trump settled three lawsuits for a total of $25 million after being elected president.
The organization ceased operations in 2011 amid the numerous investigations, lawsuits, and student complaints. The separate entity known as the Trump Institute, which was licensed by Trump University, was also not owned by The Trump Organization. While Trump received a cut of every seat sold for the Trump Institute, he was not involved in its operations.
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Students spent thousands on seminars and materials
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. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. However, despite its name, Trump University was not an accredited university or college. It did not confer college credit, grant degrees, or grade its students.
The organisation conducted three- and five-day seminars, often referred to as "retreats," and employed high-pressure tactics to sell them to customers. These seminars were not free, and students spent thousands of dollars on attendance fees and materials. In fact, a lawsuit proposed by the consumer protection division 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 high cost of these seminars is particularly concerning given the questionable value of the content provided. The training materials reviewed indicated that attendees were taught to prey upon homeowners in financial distress and target foreclosure properties. Furthermore, Trump University falsely claimed that its classes were approved for continuing education credit for Realtors, even though it lacked the necessary accreditation.
The expensive seminars, along with other questionable practices, led to multiple investigations, lawsuits, and student complaints. In 2011, amid these legal troubles, Trump University ceased operations. The release of internal documents and depositions further revealed a culture of deception, with employees instructed to use aggressive sales tactics and Trump himself distancing from the selection of instructors despite advertisements claiming otherwise.
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The university used high-pressure sales tactics
Although the exact number of students who attended Trump University is unclear, it is known that in 2005, Texas taxpayers who had been students at the "university" had spent over $2.6 million on seminars and materials. This indicates that at least some Texas taxpayers enrolled in Trump University.
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. It did not confer degrees, provide college credit, or grade its students. Instead, it conducted three- and five-day seminars, often referred to as "retreats", which were marketed through "free workshops."
In addition, Trump University falsely claimed that its classes were approved for continuing education credit for Realtors, even though it lacked the necessary accreditation. These deceptive marketing practices contributed to the multiple investigations, lawsuits, and student complaints that ultimately led to the cessation of Trump University's operations in 2011.
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Employees were instructed to use a hard-sell approach
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 and educational offerings, Trump University was never an accredited university or college. It did not possess a license to offer live instruction or training, did not confer college credit, and did not grant degrees or grade its students.
Trump University has been the subject of multiple investigations, lawsuits, and student complaints, with allegations of misleading marketing practices and aggressive sales tactics. Employees were instructed to use a hard-sell approach, and former employees have testified that the organisation defrauded and lied to its students. The free workshops offered by Trump University were revealed to be selling grounds for the 3-day seminars, providing little usable content. Through these workshops, employees targeted vulnerable homeowners facing financial difficulties and encouraged them to purchase the paid seminars.
The company charged high prices for its seminars and programs, with the justification that participants would assume personal responsibility for their success in real estate investing. Trump himself claimed in advertisements that he could turn anyone into a successful real estate investor. The investigation by the consumer protection division of the state of Texas found that Trump University had engaged in "false, misleading, and deceptive practices," defrauding Texas taxpayers out of millions of dollars.
The lawsuits against Trump University gained renewed interest due to Trump's candidacy in the 2016 presidential election. Despite initially refusing to settle, Trump ultimately settled all three lawsuits after being elected president, paying a total of $25 million. The organisation ceased operations in 2011 amid the legal troubles and negative publicity.
While the exact number of students who attended Trump University is unclear, the Texas investigation identified at least 267 Texans who spent over $425,000 on the three-day seminars, with an additional 150 customers from Texas spending more than $826,000 on other goods and services.
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Students complained about the university
While the exact number of students who attended Trump University is unclear, it is known that in 2011, amidst multiple investigations, lawsuits, and student complaints, the organisation ceased operations.
Students also complained about the high-pressure tactics used to sell the three- and five-day seminars, often referred to as "retreats". These seminars were expensive, with Texas taxpayers spending $2.6 million on seminars and materials, and an additional $2.8 million in penalties and fees. Furthermore, the content of the seminars was questionable, as attendees were taught to prey upon homeowners in financial turmoil and target foreclosure properties.
Former employees of Trump University also came forward, stating that the organisation had defrauded or lied to its students. Additionally, advertisements claimed that the staff had been hand-picked by Trump, but during depositions, Trump indicated that he had never met the instructors.
As a result of these complaints and investigations, Trump University ceased operations in 2011, and multiple lawsuits were filed against the organisation and its managers, including Trump himself.
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Frequently asked questions
It is unclear how many students attended Trump University. However, in a lawsuit, the consumer protection division sought to recover $2.6 million from Trump University that Texas taxpayers had spent on seminars and materials.
No, 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.
Yes, in 2011, amid multiple investigations, lawsuits, and student complaints, Trump University ceased operations. Two federal class-action lawsuits were filed, one against Trump University and its managers, and one against Trump personally. A third case was filed in New York State Court.
