Trump University: Students Defrauded And Seeking Justice

Trump University, founded in 2004 and launched in 2005, was an American company that ran a real estate training program. It was owned and operated by The Trump Organization and licensed a separate entity, Trump Institute. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college, did not confer degrees, and did not grant college credit.

Trump University was the subject of multiple investigations, lawsuits, and student complaints. Three lawsuits were filed, asserting that the company had engaged in illegal business practices, false claims, and racketeering. Two were federal class actions, and one was filed in New York State Court. The lawsuits centered around allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

In November 2016, Trump settled all three lawsuits for a total of $25 million. The settlement included $21 million for students defrauded by Trump University and $4 million to resolve the New York Attorney General's case. Of the approximately 7,000 former students eligible to submit claims, more than 3,700 have done so.

Trump University was a 'fraudulent scheme'

Trump University was a fraudulent scheme that took advantage of thousands of people across the nation. The for-profit real estate seminar business, founded in 2004 and launched in 2005, was owned and operated by The Trump Organization. Despite its name, it was not an accredited university or college, and it did not confer degrees or college credit. Instead, it offered seminars and mentorship programs with hefty price tags, ranging from $1,495 for a one-year "apprenticeship" to $35,000 for "Gold Elite" classes.

The scheme preyed on vulnerable people, encouraging them to take on credit card debt to pay for the courses. The university's sales handbook instructed staff to target single mothers and the elderly, and to encourage these individuals to take on credit card debt to pay for the courses.

In addition, Trump University used misleading marketing practices and engaged in aggressive sales tactics. It promised students that they would learn Trump's personal real estate investing strategies and that they would receive mentorship from instructors hand-picked by Trump himself. However, under oath, Trump admitted that he had no direct involvement in selecting instructors or developing the curriculum. The instructors were not “terrific” or “successful," as Trump had claimed, and the program provided little educational value.

As a result of these deceptive practices, Trump University became the subject of multiple investigations, lawsuits, and student complaints. There were three pending cases against Trump and Trump University: two class-action lawsuits in California and a civil lawsuit from New York's Attorney General. In November 2016, Trump agreed to pay a $25 million settlement for the cases, though he did not admit any wrongdoing. This settlement provided refunds to more than 3,700 former students who were defrauded by Trump University.

It was not a university, nor did it confer degrees

Trump University, founded in 2005, was not a university in the traditional sense. It was an American company that offered courses and seminars 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 college credit.

The organisation conducted three- and five-day seminars, often called "retreats," and used high-pressure sales tactics to sell them to customers. These seminars were not academic courses but rather successive sales pitches, urging customers to spend tens of thousands of dollars on higher-priced programs.

The "university" part of the name was misleading, as it implied a level of academic legitimacy that was not present. In 2005, the New York State Department of Education sent a letter to Trump University, stating that using the word "university" was misleading and violated New York Education Law. In response, the organisation changed its name to ""The Trump Entrepreneur Initiative" in 2010.

While Trump University claimed to offer exclusive knowledge and access to successful real estate professionals, it fell far short of customers' expectations. Many of the seminars focused more on selling additional packages and maximising credit card limits than providing valuable education.

In summary, Trump University was not a traditional university, and it did not award degrees or college credit. Instead, it was a for-profit company that used aggressive sales tactics to sell expensive seminars and programs that often did not provide the promised value. The use of the word "university" in its name was misleading and violated state laws, leading to a name change.

It used misleading marketing practices and aggressive sales tactics

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 owned and operated by The Trump Organization and founded by Donald Trump and his associates, Michael Sexton and Jonathan Spitalny. Despite its name, it was not an accredited university or college, and it did not confer college credit, grant degrees, or grade its students.

Trump University was the subject of multiple investigations, lawsuits, and student complaints, including two class actions in federal court, which alleged that the organisation defrauded its students through misleading marketing practices and aggressive sales tactics.

The marketing practices were misleading as the organisation used the name "Trump University" despite not being a chartered university or college and not having the required licenses to offer live instruction or training. Trump University was found to be in violation of New York Education Law and the Rules of the Board of Regents, and as a result, changed its name to "The Trump Entrepreneur Initiative" in 2010.

The aggressive sales tactics employed by Trump University included high-pressure tactics to sell seminars to customers, with prices ranging from $1,495 to $35,000 for the "Gold Elite" program. The company 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 recruiters were friendly advisors.

Trump University's sales playbooks instructed employees on how to play on people's emotions to get them to buy more expensive seminars. They outlined how to guide customers through "the roller coaster of emotions" and how to overcome obstacles such as potential customers reaching their credit card limits. The playbooks also identified the core customers as male heads of households between 40 and 54 years old with annual household incomes of at least $90,000, a college education, and a net worth of more than $200,000.

In addition, Trump University employees pressured students to give favorable reviews, telling them they had to fill out positive forms to obtain graduation certificates. Trump claimed that students gave the program 98% favorable reviews, but former students disputed this, stating that they were pressured to give positive feedback.

As a result of the lawsuits, Trump University settled for a total of $25 million in 2016, with $21 million going 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 assessed by the state of New York for running an unlicensed university.

It encouraged students to take on credit card debt

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 owned and operated by The Trump Organization and founded by Donald Trump, who was U.S. president from 2017 to 2021 and elected again in 2024.

The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, the organization 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 its customers.

Trump University has been accused of defrauding its students through misleading marketing practices and aggressive sales tactics. 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 lawsuit centered on allegations that Trump University defrauded its students and engaged in deceptive practices.

One of the deceptive practices encouraged by Trump University was the accumulation of credit card debt. The company's "playbook" instructed salespeople to advise students to use credit cards to pay for tuition and cover bills related to real estate investments. The idea was that students could make small monthly payments and maintain a low overhead to run their real estate projects. For example, salespeople were instructed to say, "What most people do is handle the tuition by putting it on their credit cards because it gives them the ability to make very small monthly payments and maintain a low overhead to run their real estate project."

Another pitch to encourage credit card usage was: "If a seller will take $10,000 down on a fixer-upper that you expect to make $20,000 on, why not use credit cards?" However, this could lead to a huge pile of credit card debt, with interest accumulating monthly if the profits from the real estate venture were not realized.

In addition to encouraging credit card debt, Trump University also suggested that students borrow from their retirement plans, make financial decisions based on emotion, and keep up with the Joneses. These tactics were designed to pressure vulnerable individuals into making expensive and unwise financial decisions.

As a result of these deceptive practices, Trump University was sued by thousands of its former students. In 2016, Trump agreed to pay a $25 million settlement to those who attended Trump University between 2007 and 2010. Of the approximately 7,000 former students eligible to submit claims, more than 3,700 did so and received a large percentage of the funds they had paid to Trump University.

It was founded by Donald Trump

Trump University was founded by Donald Trump, along with his associates Michael Sexton and Jonathan Spitalny, in 2004 and was launched in May 2005. It was an American company that ran a real estate training program from 2005 to 2010 and was owned and operated by The Trump Organization.

Despite its name, Trump University was not an accredited university or college. It did not confer degrees, grant credits, or grade its students. Instead, it conducted three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to customers.

Trump University was the brainchild of Michael Sexton, who created a business plan for a real estate training program and presented it to Donald Trump. Trump, however, decided he wanted to be the principal owner rather than licensing his name as Sexton had proposed.

Trump was heavily involved in the marketing of the university, featuring in ads and sending out marketing emails. In an ad, he said, "In just 90 minutes, my hand-picked instructors will share my techniques, which took my entire career to develop. Then, just copy exactly what I’ve done and get rich." In a marketing email, he wrote, "Seventy-six percent of the world’s millionaires made their fortunes in real estate. Now it’s your turn. My father did it, I did it, and now I’m ready to teach you how to do it."

Trump also played a prominent role in the university's launch event, telling reporters that he hoped to create a “legacy as an educator” by “imparting lots of knowledge” through his program. He further stated, "If I had a choice of making lots of money or imparting lots of knowledge, I think I'd be as happy to impart knowledge as to make money."

However, despite Trump's claims of wanting to impart knowledge, Trump University has been widely accused of being a fraudulent scheme designed to prey on vulnerable individuals. The university employed high-pressure sales tactics and encouraged students to take on credit card debt to pay for expensive courses.

Trump University was the subject of multiple investigations, lawsuits, and student complaints. Three separate lawsuits were filed, alleging deceptive practices, false claims, and racketeering. Two were federal class actions, and one was filed in New York State Court. In addition, Trump University was the subject of two class actions in federal court, with lawsuits centering on allegations that the university defrauded its students through misleading marketing practices and aggressive sales tactics.

Amid the legal troubles, Trump University ceased operations in 2011. In November 2016, Trump settled all three lawsuits for a total of $25 million, agreeing to pay $21 million to the participants in the class actions and $4 million to the New York Attorney General's office.

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