Category: Breaking the Law

Trump is Going to Trial This Year in Trump University Fraud Case

Trump University logo

A federal judge in San Diego set the stage on Friday for what could be one of the strangest presidential transitions in history: He ordered that Donald Trump must go to trial starting Nov. 28 in a civil case in which he is accused of defrauding students who attended Trump University.

“No doubt this will be a challenge … we’re in unchartered waters,” said Daniel Petrocelli, Trump’s lead lawyer in the case, when asked later how his client — if elected in November — would be able to balance preparing to take over the presidency with taking the witness stand in a trial that could run almost until the eve of the following January’s inauguration.

But Petrocelli said Trump was fully prepared to testify and would even attend “most, if not all” of the trial in order to vindicate himself. “His preference would be to be here for the entirety of the trial,” Petrocelli said. “He believes this case is unwarranted and he wants to defend himself fully.”

The ruling today by U.S. Judge Gonzalo Curiel, during a pretrial conference on the six-year-old lawsuit, actually represented a small victory for Trump. The lawyers for the plaintiffs, arguing that “justice delayed is justice denied,” had asked for a trial to start as early as this summer — immediately after the Republican convention in Cleveland. “There are people who are still paying off their debts for the money they paid to Trump University,” said Jason Forge, a lead lawyer for the plaintiffs suing Trump.

Petrocelli, for his part, pushed back, contending that a trial over Trump University would end up becoming a media spectacle that would amount to an “unwarranted intrusion” on the November elections. He had asked that Curiel put the whole matter off until next February, after the inauguration, arguing that Trump, if elected, would be working “around the clock” during the transition to form a Cabinet. He acknowledged to Curiel that he was “fully aware” that a President Trump would not be able to postpone the case indefinitely, consistent with the Supreme Court’s unanimous ruling that President Bill Clinton was not immune to a civil suit by Paula Jones, alleging sexual harassment.

Curiel decided to split the difference: In an effort to “accommodate” Trump’s political campaign, he agreed to put the trial off until after the election — but scheduled it right afterward, rather than “waiting for [a] President Trump to begin his first term,” thereby “placing him a situation where, as a sitting president, he is taking up time as leader of the free world” to sit through trial. (Anticipating difficulty in finding unbiased jurors, the judge said he may want to start jury selection even earlier than Nov. 28.)

But Trump may still find his legal troubles impinging on his campaign; he is facing a separate trial in New York state courts in a civil fraud suit, also stemming from the ill-fated Trump University, brought by New York Attorney General Eric Schneiderman. (No trial date has been set on that case yet, but a spokesman for Schneiderman told Yahoo News that his office believes it could begin as early as this fall.)

The hearing today is the latest development in a case that has already erupted as a campaign issue and has threatened to shine a spotlight on Trump’s business practices — including his penchant for making hyperbolic claims to consumers — at the very moment he is trying to persuade voters he can deliver on his campaign pledges to end illegal immigration, destroy the Islamic State and balance the federal budget without touching entitlements like Social Security and Medicare.

The core case revolves around the operations of a school Trump launched in 2005 with a promotional YouTube video and ads that proclaimed, “I can turn anyone into a successful real estate investor, including you,” “Are you My Next Apprentice?” and “Learn from my handpicked experts how you can profit from the largest real estate liquidation in history.”

In fact, Trump University was never an accredited educational institution, and he was later forced by state attorneys general to change its name to the “Trump Entrepreneurial Initiative.” The plaintiffs, former students at Trump University, allege that Trump used “misleading, fraudulent and predatory practices,” conning them into maxing out their credit cards and in some cases paying more than $35,000 in fees for seminars and “mentoring” by Trump’s “handpicked” real estate experts. The lawsuit against the school, which is no longer in business, alleges that the seminars were little more than an “infomercial” and that the Trump mentors offered “no practical advice” and “mostly disappeared.”

One key issue in the case has been Trump’s boasts that the “courses” and “mentoring” would be conducted by the “best of the best” — real estate experts he personally chose. During a deposition last December, Forge hammered away at Trump on the issue, showing the businessman a photo lineup and playing videos of some of the instructors and asking him if he could identify any of them. Trump could not, at first saying it was “too many years” ago for him to recognize them and then finally admitting he didn’t actually know any of them. “I looked at résumés and things, but I didn’t pick the speakers,” Trump said at one point.

Trump’s lawyers have adamantly denied the charges and insisted that most students who took the courses were satisfied. On the campaign trial, Trump has vowed to never settle the case, claiming it was brought by a “sleazebag law firm” — a reference to Forge’s firm, Robbins Geller — and confidently predicted, “I will win the case at the end.” He has even criticized Judge Curiel, claiming he was biased against him because of his Hispanic origin. “If I didn’t have a hostile judge in California, this case would have ended years ago,” he said during a campaign rally in Arkansas last Feb. 26. (Trump had even suggested he might move for Curiel’s recusal, based on his Hispanic origin, but Petrocelli told reporters today he had no plans to file such a motion.)

The case has already eaten up Trump’s time on the campaign trail, forcing him to sit for two contentious last December and January in which he was grilled by Forge, prompting him to complaint at one point about “harassment” by the lawyer and to shoot back at another point, “Let’s just go to court and get this case — I’m dying to go to court in this case.”

It looks like he might be getting his wish.

(h/t Yahoo News)

Reality

As we investigated before, Trump University was a massive scam.

What will be interesting to note is how right-wing media will cover Donald Trump on trial for fraud compared to the Hillary Clinton email investigation. No need to imagine, here is the Wall Street Journal saying Donald is being set up while Hillary is a criminal.

Trump Institute Fired Veteran For ‘Absences’ After He Was Deployed To Afghanistan

Trump University logo

Huffington Post – Republican presidential front-runner Donald Trump has been vocal about the need to take care of U.S. veterans. He’s said that if elected, he’ll “put our service men and women on a path to success as they leave active duty.”

But that’s not what the Trump Institute, a get-rich-quick real estate seminar, did for Richard Wright, a senior master sergeant in the Air Force reserves who worked for the company in 2006 and 2007. Wright was deployed to Afghanistan in the spring of 2007. When he came home to his job, the Trump Institute fired him. “All of your absences,” Wright’s boss at the Trump Institute told him, had forced the company to “reevaluate your position with the Trump Institute.” It is a violation of federal law to penalize an employee for absences caused by military service.

When Wright accepted a job at the Trump Institute in December 2006, he thought he’d be working directly with Trump.

“Having a chance to work with him was a dream come true,” Wright, now 48, said of Trump in an email to The Huffington Post.

Dozens of former customers of the Trump Institute and Trump University, a real estate instruction program, have also described being told that Donald Trump was personally overseeing the programs that bore his name, and that instructors were “hand-picked by Mr. Trump.” Judging from the information on the Trump Institute’s (now defunct) website, it’s easy to see why:

It was only after Wright started the job that he realized Trump had little to do with the day-to-day operations of the Trump Institute.

Trump provided his name, along with his image, his reputation, his video endorsements and his promises to help the Trump Institute lure potential customers and employees. But like many of the hundreds of businesses and real estate projects that have borne Trump’s name, the Trump Institute was actually a joint venture between Trump and an outside company — in this case, a Florida-based business called National Grants Conferences. Trump was paid franchise fees, but the details of his profits from the schools are a well-guarded secret.

Michael and Irene Milin, NGC’s founders, spent decades in the get-rich-quick business before linking up with Trump. NGC promised to teach its clients how to access millions of dollars in “free money” from the government. In reality, NGC seminars were little more than elaborate sales pitches for yet more NGC events, and the company, which has since been dissolved, had a long history of legal troubles and fraud investigations that spanned multiple states.

NGC’s free-money seminars provided the framework for the Trump Institute’s signature offering, the Donald Trump Way to Wealth Seminar. Trump Institute clients paid as much as $35,000 to learn the “Donald Trump Way To Wealth,” and to receive coaching from mentors like Wright.

In the clip below, from an infomercial that appears to date to 2006, Trump tells potential customers how important it is that they enroll in the Trump Institute. He also hits on the woman interviewing him.

That same year, the Trump Institute hired Wright as a tele-consultant (or “mentor,” in Trump parlance). His job was to speak on the phone with clients who had purchased “memberships” in the Trump Institute, and give them advice about investing in real estate.

On paper, Wright and his fellow mentors were technically employed by Xylophone, LLC, a foreign limited liability company controlled by Irene Milin. But to the outside world, they were working for the Trump Institute.

Two months into the job, Wright was called up for active duty, and in early February 2007, he wrote to his boss, Jay Shavin, to say he would be deployed to Afghanistan starting around March 1.

In Afghanistan, Wright was assigned to the 451st Air Expeditionary Group at Kandahar Airfield, near the country’s southern border with Pakistan. Wright was awarded three different medals for outstanding service in the six weeks he was overseas.

Wright arrived home to Florida on Monday, April 16, 2007. He asked his boss to approve two personal days for him to get his bearings, do laundry and so on.

Before Wright left for Afghanistan, he had approximately 40 different clients whom he was advising on how to buy real estate “the Trump Way.” Like the other Trump Institute mentors, Wright was promised commissions on his clients’ deals — $250 each time a client bought property and rented it out “using Trump methods,” and $750 each time a client bought and then sold a property, a process known as “flipping.”

In his first week back home, Wright emailed some of his clients to let them know he was “back safe and sound,” according to court documents.

On Monday, April 23, Wright got this note from Shavin:

I specifically told you NOT to contact your old clients. Jeff was in the office when we had the discussion. I also emphatically stated that you were not to contact your old clients. You are so concerned about your closings that do not exist, that your employment is in jeopardy. I told you that I put your former client into a deal that has not closed and would give it to you.

It is apparent that you do not listen to instructions. You are to report to my office tomorrow before you do anything. You have been here less than three months (deducting your time off for the Air Force Reserve). I find it insulting that you would make a request to be paid for time you did not work and/or personal time you did not earn.

You are still on probation. With all of your absences and inability to adhere to specific instructions, you force me to reevaluate your position with the Trump Institute.

Wright replied, in part: “I don’t think your previous comments were called for or appropriate. I am a good mentor & have always been a team player & do not appreciate being spoken to that way.”

“You needn’t be offended by my remarks,” Shavin wrote back. “Your employment is hereby terminated.”

In subsequent emails, Shavin denied that Wright was fired because of his time in Afghanistan. He also said that any further emails from Wright would be considered “harassment.”

A year later, Wright sued the Trump Institute and its parent company, Xylophone, for wrongful termination under the Uniformed Services Employment and Reemployment Rights Act. That law, passed in 1972, requires that military service members called up to active duty from civilian jobs “be restored to the job and benefits you would have attained if you had not been absent due to military service.” Under the law, the burden falls on the employer to prove that it did not fire a service member for absences related to his or her military service.

The Trump Institute ultimately reached a settlement with Wright that forbids him from talking about the case. Shavin died in 2014. Lyn Miller, another former Trump Institute employee, said Shavin was “a knowledgeable and awesome guy.”

Alan Garten, executive vice president and general counsel of the Trump Organization, provided a statement to HuffPost when asked about Wright’s experience.

“The Trump Institute was a licensee of Trump University and was not owned or controlled by Mr. Trump or any of his companies,” Garten said. “As such, Mr. Trump had nothing whatsoever to do with the employment of any of the Trump Institute’s employees or mentors, had no involvement in the development or enforcement of any of the Trump Institute’s employment policies and has no knowledge of this matter. Mr. Trump has always been a great supporter of the men and women who have served in this country’s armed forces and has devoted much of his campaign to improving the lives of veterans.”

Trump’s attempts to distance himself from the companies that paid him money and bore his name haven’t shielded him from lawsuits over their conduct.

In 2013, New York Attorney General Eric Schneiderman sued Trump and Trump University for civil fraud. Included in his case filings were scores of complaints from Trump Institute clients. In California and New York, Trump University is facing allegations of fraud, and in the California case, the company faces a class action lawsuit with more than 5,000 plaintiffs.

HuffPost attempted to contact the Milins multiple times at the number listed for their charitable organization, the Milin Family Foundation, but there was never any answer.

Wright doesn’t blame Trump for his firing, even though the Trump Institute bore Trump’s name, benefited from Trump’s endorsement and paid money to Trump in franchise and licensing fees.

“He was really just the name on the box & had nothing to do with the inner workings of the company,” Wright said in an email to HuffPost. “At the time I really needed a job & I loved what I was doing.”

This fall, Wright, who still invests in real estate, hopes to vote for Donald Trump for president.

“I am a HUGE Trump fan and supporter and think he would make an excellent leader,” he said. Trump “is saying all the things that politicians have been afraid to say over the years. That is why they are nervous and siding against him. He threatens what they have worked so hard to build. As a veteran, I LOVE that he is wanting to make America great again.”

(h/t Huffington Post)

Reality

It is a violation of federal law to penalize an employee for absences caused by military service.

Some may argue that since Senior Master Sargent Wright himself does not put any direct blame on Donald Trump then therefor the buck should stop with the owners and operators of the Trump Institute. This, however, is not how the business world works. For example, in 1996 it was discovered that a clothing line by talk show host Kathy Lee Gifford was being manufactured by children as young as 12 in Honduran sweatshops. Even though Wal-Mart was responsible for producing the Kathie Lee Gifford clothing line the court of public opinion turned harshly against her. It was a business decision by Kathie Lee to place her name, her image, and her reputation on the line unchecked. (No pun intended.)

Donald Trump is running for the Republican candidacy for the President of the United States of America on qualifications that he is a “great businessman” so it is entirely fair to challenge him on his record. Donald Trump put his name and support behind companies, such as Trump University and the Trump Institute, which engaged in fraudulent and illegal activities. A great businessman would have either been more careful with where they invested or had more control in a company that they stamped their name on.

Trump Volunteers Now Required to Sign Non-Disclosure Agreement

Reported by The Daily Dot, the Trump Campaign is now requiring some volunteers to sign Non-Disclosure Agreements before they can help the campaign – agreements that would theoretically allow Trump to sue volunteers for talking about the campaign and a process that some legal experts say is unusual and probably unenforceable.

2. No Disparagement. During the term of your service and at all times thereafter you hereby promise and agree not to demean or disparage publicly the Company, Mr. Trump, any Trump Company, any Family Member, or any Family Member Company or any asset any of the foregoing own, or product or service any of the foregoing offer, in each case by or in any of the Restricted Means and Contexts and to prevent your employees from doing so.

3. No Competitive Services. Until the Non-Compete Cutoff Date you promise and agree not to assist or counsel, directly or indirectly, for compensation or as a volunteer, any person that is a candidate or exploring candidacy for President of the United States other than Mr. Trump and to prevent your employees from doing so.

Volunteers also sign a non-disclosure agreement, forbidding them from sharing any sensitive information from the campaign. What kind of information is sensitive or confidential is completely at Trump’s discretion, according to the contract.

Volunteers must also sign a non-compete agreement that extends until Trump ceases his campaign for president, identified in the contract as the “Non-Compete Cutoff Date.” The agreement also forbids volunteers from working for another presidential candidate, should they change their minds.

In the event of a Trump victory in November’s general election, the non-compete clause could extend until his 2020 reelection campaign or even 2024, at the end of a second Trump term, the document explains. If Trump loses but wants to run again in the next election or in any presidential election in the future, the contract states the volunteer cannot work for another candidate.

Volunteers are, once again, theoretically bound to “to prevent your employees from” working on any other presidential campaign at any point while Trump is running for president, ostensibly locking them into Trump’s political career for life.

Reality

Trump again displays his complete lack of understanding of the First Amendment to the Constitution of the United States of America. As a bully he repeatedly uses the threat of litigation to scare people, no matter how silly the lawsuit would be.

Links

http://www.dailydot.com/politics/donald-trump-volunteer-contract-nda-non-disparagement-clause/

Attorney General’s Conflict of Interest

Florida AG Pam Bondi and Trump

Florida Attorney General Pam Bondi endorsed Donald Trump. This isn’t news because Bondi became the first big-name Republican official in the state to endorse Donald Trump for president, but instead of reported bribes from 3 years ago.

In the fall of 2013, Bondi was preparing for a re-election bid and a for-profit college called Trump University had just been sued by New York Attorney General Eric Schneiderman. The lawsuit alleged that Trump University had “scammed” more than 5,000 people out of more than $40 million by falsely promising to teach them the tools to Trump’s real estate success.

With media scrutiny mounting, the Donald J. Trump Foundation that September contributed $25,000 to Bondi’s campaign.

Bondi never followed New York’s lead in taking action against Trump and Trump University. Although there were complaints in Florida, the state never opened an investigation.

Reality

On Sept. 14, 2013, the Sentinel quoted a spokeswoman for Bondi who said that Florida’s attorney general was studying the New York lawsuit to see whether she wanted to take action in Florida as well.

Three days later, on Sept. 17, 2013, Trump’s foundation cut a $25,000 check to a committee associated with Bondi’s campaign. It was one of the largest checks that her “And Justice for All” PAC had received.

Bondi soon dropped her investigation, citing insufficient grounds to proceed.

This was clearly a bribe.

Media

Links

http://www.miamiherald.com/news/politics-government/election/article65995972.html

http://thinkprogress.org/politics/2016/03/14/3760061/pam-bondi-donald-trump-trump-university/

Donald Trump Received a Tax Break For People Who Make Less Than $500,000 a Year

Trump waves off questions from car

Republican presidential candidate Donald Trump has never been shy about claiming a flair for moneymaking.

But his tax returns, which he has refused to release, may tell a different story.

Crain’s New York reports that the New York real estate developer and self-described deca-billionaire claimed a a New York state property-tax benefit reserved for individuals and couples earning $500,000 a year or less. The New York State School Tax Relief program, otherwise known as STAR, was first instituted in 1997, and offers a mere $300 annual tax break to those who qualify.

According to Crain’s, records filed with New York City’s Department of Finance indicate that Trump received a $302 STAR benefit on his latest property-tax bill for his penthouse unit at Trump Tower. “That means whatever his annual income is, it’s less than $500,000,” Crain’s reported. “And Trump would have to have declared his New York apartment as his primary residence and sent the state a copy of his federal income-tax return in order to quality for the $302 tax break.”

Trump’s campaign claims the benefit was “an error on the party of the city of New York,” and that the candidate has been receiving the benefit since 2012, even though he hadn’t filed for it since 2009. The Department of Finance denies this, saying it confirms recipients’ income with New York state tax authorities every year to ensure STAR applicants continue to qualify.

Links

http://qz.com/634479/donald-trump-received-a-tax-break-for-people-who-make-less-than-500000-a-year/

Rubio Claims Trump Hired Illegal Workers From Poland

Florida Sen. Marco Rubio charged Republican presidential frontrunner Donald Trump with hypocrisy for hiring undocumented immigrants for his real estate projects instead of American citizens.

“He hired from Poland, and he had to pay a million dollars or so in a judgment,” Rubio said. “That’s a fact. People can look it up. I’m sure people are Googling it right now, ‘Trump Polish workers.’ You’ll see $1 million for hiring illegal workers on one of his projects. He did.”

Politifact did some Googling and also reached out to the Rubio campaign, which referred them to media reports about a protracted class-action lawsuit involving his hiring of Polish aliens 36 years ago.

Sometime between 1979 and 1980, Trump hired a contractor to demolish an old building in midtown Manhattan to make way for Trump Tower. The contractor signed on workers from a local union and, to meet Trump’s tight deadline, also brought on 200 undocumented laborers from Poland dubbed the “Polish Brigade.”

The Polish employees were off-the-books, working 12-hour shifts seven days a week for $4 to $5 an hour, with no overtime. Some workers were never paid what they were owed.

In 1983, union members sued a union boss, Trump and his contractor for cheating the union out of pension and welfare funds by hiring the Polish Brigade. Trump owed the union pension fund $1 million, the plaintiffs said.

Appearing in court in 1990, Trump blamed the violations on the contractor and denied knowing that the Polish workers were undocumented.

The case dragged on until 1999 when Trump quietly settled, according to the New York Daily News, but the agreement was placed under seal.

Media

Links

http://www.politifact.com/truth-o-meter/statements/2016/feb/25/marco-rubio/marco-rubio-says-donald-trump-had-pay-1-million-hi/

Fox Says Trump Wanted $5 Million Donation

Fox News logo

Fox News Channel accused Donald Trump of asking the network for a $5 million donation as a “quid pro quo” in return for Trump’s promise to appear in Thursday night’s Republican debate, as an extraordinary feud between the right’s best-known media platform and the Republican party’s presidential front-runner overshadowed the last debate before the Iowa caucuses.

“Roger Ailes had three brief conversations with Donald Trump today about possibly appearing at the debate – there were not multiple calls placed by Ailes to Trump.

 

In the course of those conversations, we acknowledged his concerns about a satirical observation we made in order to quell the attacks on Megyn Kelly, and prevent her from being smeared any further.

 

Furthermore, Trump offered to appear at the debate upon the condition that Fox News contribute $5 million to his charities. We explained that was not possible and we could not engage in a quid pro quo, nor could any money change hands for any reason.

 

We have accomplished those two goals and we are pleased with the outcome. We’re very proud to have her on stage as a debate moderator alongside Bret Baier & Chris Wallace.”

(h/t Chicago Tribune)

Reality

By shaking down Fox News for $5 million dollars in order to appear at their debate Donald Trump just committed a crime.

It’s also ironic that Trump refused to attend the debate by accusing Megyn Kelly of having a conflict of interest.

Trump Promises To Be A Little More Violent After Repeated Protests

A series of protests interrupted Republican presidential front-runner Donald Trump’s Miami campaign speech.

The pro-immigration demonstrators stopped Trump three times, before being shouted down by Trump supporters and removed from the facility.

“You can get them out, just don’t hurt them,” Trump advised to building security at Trump National Doral Miami, a resort the candidate owns.

He insisted the interruptions didn’t bother him, saying that “that’s what freedom of speech is about.”

“Isn’t this more fun than having like a normal deal?” the billionaire told his supporters. “This is more fun, right?”

But after several interruptions, he became peeved, noting that he had been polite to the first two disruptors.

See the first group, I was nice. Oh, take your time. The second group, I was pretty nice. The third group, I’ll be a little more violent, and the fourth group, I’ll say, ‘Get the hell out of here!’

Reality

Threats are not protected free speech by the First Amendment to the Constitution of the United States of America.

Comments like these add to the growing evidence that Donald Trump supports and condones violence against people with different ideas.

Media

Links

http://www.dailykos.com/story/2015/10/25/1439036/-Trump-on-rising-barbarity-at-his-rallies-I-ll-be-a-little-more-violent

 

 

 

 

Trump University Was a Massive Scam

Trump University logo

They hoped to get rich off real estate, and who would be a better mentor than one of the richest men in the world? So they enrolled in Donald Trump’s university to learn the tricks of the trade, some of them maxing out their credit cards to pay tens of thousands of dollars for insider knowledge they believed could make them wealthy.

With Trump rising in the polls as the front-runner for the GOP presidential nomination, his brief foray into education is an episode — and a business failure — that remains far more obscure than other chapters of the celebrity billionaire’s career.

Never licensed as a school, Trump University was in reality a series of real estate workshops in hotel ballrooms around the country, not unlike many other for-profit self-help or motivational seminars. Though short-lived, it remains a thorn in Trump’s side nearly five years after its operations ceased: In three pending lawsuits, including one in which the New York attorney general is seeking $40 million in restitution, former students allege that the enterprise bilked them out of their money with misleading advertisements.

Instead of a fast route to easy money, these Trump University students say they found generic seminars led by salesmen who pressured them to invest more cash in additional courses. The students say they didn’t learn Trump’s secrets and never received the one-on-one guidance they expected.

It’s a chapter of Trump’s past that shows how he sometimes defies the usual laws of campaign physics. Such allegations of multi­million-dollar fraud might sink other candidates, but in Trump’s case, even some of the students who felt duped said they haven’t given up on him: They like Trump. They admire him. They might even vote for him.

“He says what he means, not like politicians, not like Obama,” said Louie Liu of Hurst, Tex. Liu, a motel owner, said in a sworn affidavit that he paid $1,495 for a three-day seminar, then felt lured into paying $24,995 for more classes, an online training program and a three-day in-person mentorship. A few days later, he called to ask for a refund, but his request was rejected. Trump University, he concluded, was a “scam.”

Trump’s attorneys vigorously deny the charges. Alan Garten, general counsel for the Trump Organization, said the company offered aspiring real estate investors a quality education and that all but a handful of students were pleased with it.

It is unbelievable, Garten said, that anyone could have thought that Trump University was a university in the traditional sense. Classes were held in hotel ballrooms, after all. “People who say, ‘I thought it was a university with a football team and a bookstore,’ it’s laughable,” he said.

Trump University was born in 2004, when two businessmen proposed to offer distance-learning courses in entre­pre­neur­ship under the Trump brand. Trump gave his blessing, according to court documents, becoming a 93 percent owner of the new enterprise.

By 2007, the business had evolved to focus on live real estate seminars. But Trump University was not a university in any legal sense, and beginning in 2005, New York State Education Department officials told the company to change its name because they deemed it misleading. The business became the Trump Entrepreneur Initiative in May 2010, and it stopped operating shortly thereafter.

New York Attorney General Eric Schneiderman (D) filed his $40 million suit against Trump and Trump University in 2013, alleging that Trump had illegally operated an unlicensed university and defrauded students. Approximately 80,000 people attended Trump University’s free introductory seminars, according to court documents. About 9,200 of them went on to pay $1,495 for three-day seminars, and nearly 800 paid up to $35,000 for packages that included mentorships and workshops.

“No one, no matter how rich or popular they are, has a right to scam hard working New Yorkers,” Schneiderman said in a news release at the time.

Trump attacked Schneiderman, calling him a “political hack” whose lawsuit was a publicity grab and a shakedown for campaign contributions. “We have a school that’s a terrific school. It did a fantastic job,” Trump told ABC’s “Good Morning America” in 2013.

Trump’s campaign referred questions to Garten, Trump’s lawyer, who said the allegations are baseless and expressed confidence that Trump will prevail.

“We’re completely winning this case,” Garten said.

Matt Mittenthal, a spokesman for Schneiderman, said the attorney general could not comment on the pending suit. “We will continue to pursue our claims against Mr. Trump in court on behalf of the people he defrauded,” Mittenthal said.

The judge in the New York case ruled last year that Trump is personally liable for illegally operating a university without a proper license. But the judge also ruled that the statute of limitations prevents Schneiderman from seeking restitution for most of Trump University’s students, a decision Schneiderman is appealing. Whether the university defrauded students and how much Trump might owe in damages are yet to be decided.

Trump University introduced itself to potential customers with advertisements on radio and television, and in newspapers. The ads promoted a free, two-hour real estate seminar and a chance to learn Trump’s strategies from his “handpicked instructors.”

“He’s earned more in a day than most people do in a lifetime,” reads a 2009 ad featuring Trump’s photograph. “He’s living a life many men and women only dream about. And now he’s ready to share — with Americans like you — the Trump process for investing in today’s once-in-a-lifetime real estate market.”

The ad goes on to quote Trump: “I can turn anyone into a successful real estate investor, including you.”

The soundtrack for the free seminars was “For the Love of Money,” the theme song for “The Apprentice,” Trump’s reality television show. Instructors allegedly told inspirational stories of their own business successes and then encouraged students to pay $1,495 for a three-day workshop.

Students said they were swept along by the promise that they were getting the best real estate education money could buy, according to interviews and several dozen complaints and sworn affidavits filed with the court. But they claimed that the seminars were another sales pitch: To learn how to make it in real estate, they needed additional workshops and mentoring at a cost of up to $35,000.

(h/t Washington Post)

Reality

Was Trump University a scam? We take a look at the available evidence.

Did Trump University sell itself off as an educational institution?

Yes. Trump himself marketed Trump University as a premier institution of higher learning rivaling Wharton Business School. Trump University had advertisements touting their function as a higher educational entity.

Trump University online advertisement.

Trump University free class advertisement

They had course books (that you can still purchase on Amazon) with their course numbers.

Trump University Real Estate 101 course book

Was Trump University a licensed school?

No. A New York judge found Donald Trump was running an unlicensed school and was liable. The New York Department of Education demanded that the name Trump University be changed since it was misleading and in violation of the state’s education laws.

Were the professors the best brains in the industry and hand picked by Donald Trump as he promised?

No. They were hired motivational speakers with limited-to-none real estate background and not picked by Trump. In a deposition in the Cohen case last December, Trump suggested under oath that he was not very involved in hiring instructors, despite the program’s promotional materials suggesting otherwise and his lawyers asserting he was “very involved.” Rather, Trump said, “I would see résumés. … I told [Trump University’s president] I want very good people.” He also said he did not personally select instructors for 2009 live seminars

What did students find when the got there?

Courses with instructors pressing them to buy more courses for tens of thousands of dollars more.

Did Trump University have a A+ rating from the Better Business Bureau, as Trump claims in his defense.

Yes, Trump University had an ‘A+’ rating from the Better Business Bureau… only after all of the bad reviews and complaints were removed. The policy of the Better Business Bureau is to remove all claims for a company after 3 years. When Trump University was active it had a rating of ‘D-‘. Donald Trump’s defense of an ‘A+’ rating is a clear deception.

Conclusion

Our conclusion based on all of the available evidence is that Trump University is a textbook example of a bait-and-switch scam.

Media

Deceptive advertisement by Trump University:

https://www.youtube.com/watch?v=hbSYqddkiT4
Media piece on Trump University:

Links

Court documents

Lawyers prosecuting Trump University

Trump Companies Use and Commit Fraud on H-1B Visa Workers

While Trump has bashed the H-1B visa program in multiple debates and makes lowering the number of H-1B visas a top policy decision for his immigration reform.

Increase prevailing wage for H-1Bs. We graduate two times more Americans with STEM degrees each year than find STEM jobs, yet as much as two-thirds of entry-level hiring for IT jobs is accomplished through the H-1B program. More than half of H-1B visas are issued for the program’s lowest allowable wage level, and more than eighty percent for its bottom two. Raising the prevailing wage paid to H-1Bs will force companies to give these coveted entry-level jobs to the existing domestic pool of unemployed native and immigrant workers in the U.S., instead of flying in cheaper workers from overseas. This will improve the number of black, Hispanic and female workers in Silicon Valley who have been passed over in favor of the H-1B program. Mark Zuckerberg’s personal Senator, Marco Rubio, has a bill to triple H-1Bs that would decimate women and minorities.

Requirement to hire American workers first. Too many visas, like the H-1B, have no such requirement. In the year 2015, with 92 million Americans outside the workforce and incomes collapsing, we need companies to hire from the domestic pool of unemployed. Petitions for workers should be mailed to the unemployment office, not USCIS.

Ut-Oh!

Not only was Donald Trump extensively using the H-1B visa program for his own companies, he tried to import at least 1,100 foreign workers, and he has been accused of fraud and treating models at his model agency “like a slave.”

 

Links

https://www.donaldjtrump.com/positions/immigration-reform

Donald Trump’s companies tried to import at least 1,100 foreign workers

http://abcnews.go.com/Politics/trump-model-felt-slave-working-donalds-agency/story?id=37313993

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