Donald Trump believed he could make anyone a real estate tycoon. Therefore, he decided to spread the Trump knowledge to the masses and created Trump University in 2005. For the past several years, Trump’s dream has caught flack from students to former employees. Many say Trump University was a big hoax and the only person getting rich in the process was the GOP forerunner, Donald Trump. Civil lawsuits against Trump and Trump University are ongoing. For those that need a quick overview of this controversy, here’s a rundown of what’s what: Legalities… In total, there are three lawsuits ongoing. Two federal class-action suits in California were filed by former students: Tarla Makaeff v. Trump University, was filed in 2010, and, Art Cohen v. Donald J. Trump, was filed in 2013. The third suit, People v. Trump Entrepreneur Initiative LLC, is state-based and was filed in New York by State Attorney General Eric Schneiderman in 2013. All three cases, in totality, represent the interests of thousands of former Trump University students from California, Florida and New York. Manipulation and Fraud… Plaintiffs in the California suits say Trump University was one big false advertisement. Trump didn’t hand-pick the teachers, instead hired contractors who were paid commission off seminars and products sold. Attorney General Eric Schneiderman accused Trump University of deceptive business practices. His $40 million civil suit also denies Trump’s hiring of teachers, as advertised, and say that consumers were not given access to “hard money lenders” while in the program. Trump University used the initial free seminar as bait to lure students into the program. At the seminar, “teachers” would “upsell” students into buying a one year apprenticeship at $1,495. The one year apprenticeship was, in actuality, a three-day seminar. When students purchased the apprenticeship, Trump University would pressure them into buying a “mentorship,” which costs $10,000 and up. The highest program offered was Gold Elite, which cost $35,000. Legitimacy… Trump University wasn’t an accredited school. The New York Department of Education forced Trump University to change its name because it was in violation of state’s education laws. Subsequently, the name changed to Trump Entrepreneur Initiative in 2010. But, it seems that Trump was warned about the state education department’s stance on “university” back in 2005. However, the program continued to use the name until 2010. Defeats… In 2014, Donald Trump was found liable for operating an unlicensed school. A New York trial court also authorized the deposition of 5,000 consumers. In March 2015, a New York court refuse to dismiss Schneiderman’s fraud case against Trump. Trump’s lawyers tried to use “statue of limitations” as a basis for dismissal. Additionally, Trump was ordered to pay Makaeff’s attorney’s fees, which is $800,000. Source: CNN
