Trump University: Why some students say it's a scam
-
Molly Jackson Staff
鈥淚 feel a lot of people listen to what I have to say,鈥� Donald Trump told The Daily Beast in May 2012, in an interview purportedly expressing his support for then-Republican nominee Mitt Romney.
Before the real estate mogul and all-around celebrity launched his own presidential campaign this summer, thousands of small business owners were lining up, and paying up, to listen to advice from Mr. Trump's 鈥渉andpicked experts鈥� at Trump University, a short-lived initiative, in the ads for which Trump proclaimed 鈥淚 can turn anyone into a successful real estate investor, including you.鈥�
Yet, the New York State Attorney General and two former students have brought three lawsuits against the GOP presidential candidate, alleging that 鈥淭rump University鈥� was little more than an opportunity for Trump to do what he does best: make money.
Students accuse Trump of running a scam, not a school, and Attorney General Eric Schneiderman filed a $40 million suit in 2013, accusing the company of operating an unlicensed university. Trump University, which was founded in 2004 as a collaboration between Trump and two partners, changed its name in 2010 to Trump Entrepreneur Initiative after the New York State Education Department warned it, in 2005, that the name was misleading. It is no longer accepting new students.
Prospective students were invited to a free, two-hour seminar, during which instructors touted the value of a further three-day workshop for $1,495, and up to tens of thousands more dollars of further instruction and mentorship.
The Washington Post reports that , in order to improve their investment possibilities 鈥� or, as the students allege, simply so they could afford Trump University. For $35,000, one student remembers walking away with 鈥渓ittle more than meaningless certificates of completion and a photograph of himself with a life-size image of The Donald,鈥� according to the Post.
Trump Organization lawyer Alan Garten and former Trump Entrepreneur Initiative President Michael Sexton strongly deny the claims, arguing both that the programs provided substantive instruction that met 98 percent of students鈥� expectations and that it was unreasonable to expect a more "scholastic" experience.
In a , Mr. Sexton responds to claims that the name was misleading.
The focus of TEI鈥檚 business was offering practical instruction for building specific, real-world business skills ... for working adults, which is the antithesis of traditional, broad-based education offered by colleges and universities.
Given Donald Trump鈥檚 widespread recognition as a street-wise business person and media celebrity ... and certainly not as an 鈥渋vory-tower鈥� educator, I did not believe that the name Trump University could possibly mislead anyone.....
Sexton also details TEI鈥檚 curriculum, defending the program against Mr. Schneiderman鈥檚 finding that instruction was created by an outside party without real estate expertise, and points out that the website stated no credits or degrees would be rewarded.
There is seemingly no love lost between Schneiderman and Trump, who counter-sued the Attorney General for misconduct, charges that the New York 聽The two contested the nature of Trump University in a in 2013.
The Trump Organization insists that dissatisfied students represent a tiny minority, creating a website, , to prove it. Although the site does document students鈥� post-course surveys, perhaps more space is dedicated to attacking Schneiderman for mismanaging the public鈥檚 funds with what Trump deems a frivolous, politically motivated lawsuit.
98percentapproval鈥檚 homepage proclaims, 鈥�98% of Trump University students rated the program 鈥榚xcellent鈥� while only *4% of New York State registered voters rated Attorney General Eric Schneiderman鈥檚 performance as 鈥榚xcellent鈥� and Schneiderman thinks he could be the next governor?鈥�, while another states, 鈥淭his website was created to bring to the public's attention the gross incompetence of New York State Attorney General Eric T. Schneiderman.鈥�
Although New York courts have ruled that Trump is liable for running a university without a license, Schneiderman must appeal to overcome a statute of limitations preventing him from helping most students recover their fees.
