On May 23rd, 2005; Donald Trump and associates of Donald Trump founded what they called Trump University.  In promotional advertisements presented by Donald Trump himself, the so called real estate mogul promises students to receive a better education through Trump University than through any other business college.  The following is the exact wording on a webpage for www.trumpuniversity.biz as it appeared on a social media blog at the time:

ARE YOU TIRED OF BUYING GET RICH IN REAL ESTATE BOOKS THAT DON’T HELP YOU GET RICH?  WE MAKE OUR LIVING IN REAL ESTATE, BUYING AND SELLING, FIXING AND FLIPPING, FIXING AND RENTING.  WE CAN SHOW YOU HOW!

What We Do.

I WILL TEACH YOU HOW TO FIND PROPERTIES AT THE RIGHT PRICES, HOW TO NEGOTIATE FOR THE BEST PRICES AND HOW TO SPOT A WINNER.  WE WILL SHOW YOU THE BEST REAL ESTATE INVESTMENT STRAGETIES FOR YOU.

WE WILL SHOW YOU REAL PROPERTIES, BEFORE DURING AND AFTER RENOVATION.  YOU CAN TAKE ADVANTAGE OF OUR YEARS OF EXPERIENCE AND LEARN HOW WE MAKE MILLIONS OF DOLLARS PER YEAR.

Services

WE SELL SUCCESS.  WE WILL TEACH YOU HOW TO MAKE MONEY NOW.

About Us

OUR MISSION IS TO MAKE YOU A MILLIONARE!

WE CAN SHOW YOU THE METHODS DONALD TRUMP UTILIZES IN HIS REAL ESTATE SUCCESS.

Contact Us

CALL ***-***-**** TO ARRANGE AN INTERVIEW ASK FOR ****** NOT ALL APPLICANTS WILL BE ACCEPTED FOR TRAINING.

 

The Trump Entrepreneur Initiative (formerly Trump University) is an online education company owned and founded by Donald Trump.  A part of The Trump Organization, the company offers courses in real estate, asset management, entrepreneurship, and wealth creation.  It was charging fees ranging from $1,500 to $35,000.  It is not an accredited university or college and does not confer college credits or degrees.

In June 2010, the institution officially changed its name from Trump University to The Trump Entrepreneur Initiative, after the New York State Department of Education took the view that it was “misleading and even illegal” for the institution to call itself a university.  In May 2011, the company was the subject of an inquiry by the New York Attorney General’s office for “illegal business practices.”

This inquiry culminated in a lawsuit filed on August 24, 2013, in which, the State of New York filed a $40 million civil suit against the institution (which had largely ceased operations in May 2011), alleging illegal business practices and claiming numerous “false promises” made by The Trump Entrepreneur Initiative and its representatives.

New York’s attorney general sued Donald Trump for $40 million Saturday, saying the real estate mogul helped run a phony “Trump University” that promised to make students rich, but instead steered them into expensive and mostly useless seminars and even failed to deliver promised apprenticeships.

Attorney General Eric Schneiderman says many of the 5,000 students who paid up to $35,000 thought they would at least meet Trump, but instead all they got was their picture taken in front of a life-size picture of him.

“Trump University engaged in deception at every stage of consumers’ advancement through costly programs and caused real financial harm,” Schneiderman said.  “Trump University, with Donald Trump’s knowledge and participation, relied on Trump’s name recognition and celebrity status to take advantage of consumers who believed in the Trump brand.”

The lawsuit says many of the wannabe moguls were unable to land even one real estate deal and were left far worse off than before the lessons, facing thousands of dollars in debt for the seminar program once billed as a top quality university with Trump’s “hand-picked” instructors.

Schneiderman is suing the program, Trump as the university chairman, and the former president of the university in a case to be handled in state Supreme Court in Manhattan. He accuses them of engaging in persistent fraud, illegal and deceptive conduct and violating federal consumer protection law.  The $40 million he seeks is mostly to pay restitution to consumer.  Since its forced name change in 2010 when it was renamed the Trump Entrepreneur Institute, it has been dogged by complaints from consumers and a few isolated civil lawsuits claiming that it didn’t fulfill its advertised claims.

Schneiderman’s lawsuit covers complaints dating to 2005 through 2011.  Students paid between $1,495 and $35,000 to learn from the Manhattan mogul who wrote the best seller, “Art of the Deal” a decade ago followed by “How to Get Rich” and “Think Like a Billionaire.”

Scheiderman said the three-day seminars didn’t, as promised, teach consumers everything they needed to know about real estate. The Trump University manual tells instructors not to let consumers “think three days will be enough to make them successful,” Schneiderman said.

At the seminars, consumers were told about “Trump Elite” mentorships that cost $10,000 to $35,000.  Students were promised individual instruction until they made their first deal.  Schneiderman said participants were urged to extend the limit on their credit cards for real estate deals, but then used the credit to pay for the Trump Elite programs. The attorney general said the program also failed to promptly cancel memberships as promised.

For a guy that had “white House” aspirations, it sounds like another “get rich quick scheme.”  The only problem was that it was never designed to make any of the students become rich, real estate owners, but rather just another way to cash in on the name of Donald Trump.  The only ones who profited from this were apparently Donald Trump and the people in his organization.

There’s a sucker born every minute” is a phrase often credited to P. T. Barnum(1810–1891), an American showman and like P. T. Barnum, Donald Trump probably thinks the same way.  Either way they are both cut from the same cloth, when regarded as showmen.  (A term which usually refers to people who run amusement and side show equipment at regional shows, state fairs, carnivals, events, and festivals.)

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