Jared Kushner Reportedly Tried to Set Up a Secret Trump-Russia Back Channel

Jared Kushner, President Donald Trump’s son-in-law and top White House adviser, was willing to go extraordinary lengths to establish a secret line of communication between the Trump administration and Russian government officials, The Washington Post reported on Friday.

During the presidential transition period leading up to Trump’s inauguration, Kushner held a series of meetings with the Russian ambassador to the US, Sergey Kislyak, and the head of a Moscow bank that was under US sanctions.

In talks with Kislyak in December, Kushner floated the possibility of setting up a secure line of communication between the Trump transition team and Russia — and having those talks take place in Russian diplomatic facilities in the US, essentially concealing their interactions from US government scrutiny, The Post wrote, citing US intelligence officials briefed on the matter.

Kislyak reportedly passed along that request to Moscow. The Post’s Ellen Nakashima, Adam Entous, and Greg Miller reported that the Russian ambassador was “taken aback” by Kushner’s request, because it posed significant risks for both the Trump team and the Kremlin.

Kushner, who did not disclose the meeting on his security clearance form, is now a subject in the FBI’s investigation of Russia’s election interference, and whether the Trump campaign colluded with Moscow to undermine Hillary Clinton.

He also had two previously undisclosed phone calls with Kislyak between April and November of last year, according to Reuters. Kushner’s attorney Jamie Gorelick responded to the Reuters story Friday evening via CNN, saying “Mr. Kushner participated in thousands of calls in this time period. He has no recollection of the calls as described. We have asked (Reuters) for the dates of such alleged calls so we may look into it and respond, but we have not received such information.”

“GOOD GRIEF. This is serious,” said Bob Deitz, a veteran of the NSA and the CIA who worked under the Clinton and Bush administrations.

“This raises a bunch of problematic issues. First, of course, is the Logan Act, which prohibits private individuals conducting negotiations on behalf of the US government with foreign governments,” Deitz said. “Second, it tends to reinforce the notion that Trump’s various actions about [fired FBI Director James] Comey do constitute obstruction.”

“In other words, there is now motive added to conduct,” Deitz noted. “This is a big problem for the President.”

Kushner did not previously disclose the December meetings to US officials during his background check, and the White House only acknowledged them after news outlets reported on it. It follows a pattern among key Trump advisers that unfolded during and after the 2016 election.

“If you are in a position of public trust, and you talk to, meet, or collude with a foreign power” while trying to subvert normal state channels, “you are, in the eyes of the FBI and CIA, a traitor,” said Glenn Carle, a former top counterterrorism official at the CIA. “That is what I spent my life getting foreigners to do with me, for the US government.”

Carle noted that, if the Kushner-Kislyak meeting and reported discussion were an isolated incident, then it could be spun as “normal back-channel communication arrangements among states.”

“If Jared Kushner was trying to set up a back channel with the Russians, doesn’t that mean he wasn’t colluding with them?” a White House official said in response to the story, according to CNN.

But Kislyak and the Trump campaign interacted extensively, and Trump associates either kept those interactions secret from US officials or misrepresented them, as was the case with Michael Flynn, who was forced to resign in February for similar reasons.

Reuters reported earlier this month that Flynn and Kislyak also spoke about setting up a secret back channel during the transition between Trump and Russian President Vladimir Putin “that could bypass the US national security bureaucracy.”

“We know about the multiple meetings of Trump entourage members with Russian intel-related individuals,” Carle said. “There will be many others that we do not know about.” He noted that while this reported back channel is “explosive,” it is worth questioning who planted the story — The Post reportedly received an anonymous letter in December tipping them off to the Kushner-Kislyak meeting.

Additionally, as a longtime diplomat, Kislyak would have known that his communications were being monitored. So the possibility remains, Carle said, that the Russians used the meeting with Kushner to distract the intelligence community and the public from potentially more incriminating relationships between the campaign and Moscow.

Indeed, Kushner also met with the CEO of Russia’s state-owned Vnesheconombank, Sergey Gorkov, in December 2016, The New York Times reported in late March. The meeting — which had not previously been disclosed and came on the heels of Kushner’s meeting with Kislyak at Trump Tower — caught the eye of the Senate Intelligence Committee, which is investigating Russia’s interference in the 2016 election and whether any members of Trump’s campaign were complicit.

Kislyak reportedly orchestrated the meeting between Kushner and Gorkov, who was appointed by Russian President Vladimir Putin in January 2016 as part of a restructuring of the bank’s management team, Bloomberg reported last year.

The Kremlin and the White House have provided conflicting explanations for why Kushner met with Gorkov.

Former CIA Director John Brennan, in testimony Tuesday before the House Intelligence Committee, said that he was concerned by some of the “interactions” between Russian officials and members of the Trump campaign that took place during the election last year.

Republican Rep. Tom Rooney asked Brennan if he ever found “any direct evidence of collusion between the Trump campaign and Putin in Moscow” while he was the CIA director.

Brennan replied that “there was intelligence that the Russian intelligence services were actively involved in this effort … to try to get individuals to act on their behalf either wittingly or unwittingly.” He added that he was “worried by the contacts that the Russians were having with US persons” and “had unresolved questions” by the time he left office about whether” the Russians had succeeded in getting Americans to do their bidding.

Pressed further, Brennan said that “the information and intelligence revealed contacts and interactions between Russian officials and US persons involved in the Trump campaign that I was concerned about because of known Russian efforts to suborn such individuals. It raised questions in my mind about whether the Russians were able to gain the cooperation of such individuals.”

[Business Insider]

Reality

According to the Washington Post, most analysts agree that it’s appropriate for presidents and their senior aides to use secret contacts to advance U.S. foreign policy goals. And it’s fairly routine for incoming administrations to have get-acquainted talks with foreign governments, too. Such back channels can add stability and predictability in foreign relations.

What’s not okay is when an incoming administration seeks to undermine the policies of the incumbent. We have “one president at a time.” That’s not just a political truism but a matter of law, enunciated back in 1799 in the Logan Act, which prohibits private meddling with official policy during a dispute. The fact that this statute has never been enforced criminally doesn’t blunt its importance.

And it’s not okay, either, for any citizen, even the son-in-law of the president-elect, to propose contacts that would use the communications tools of a foreign intelligence service to evade detection.

Megyn Kelly Says Trump Offered Gifts to Influence Coverage

The Fox News presenter Megyn Kelly has claimed Donald Trump tried to influence her to cover him positively by offering gifts including free hotel stays.

She said she was not the only journalist who had been offered gifts, saying this was “one of the untold stories of the 2016 campaign”.

The claims are in her memoir, to be released on Tuesday.

In her memoir, Ms Kelly alleges that Mr Trump offered to fly her and her husband to his Mar-a-Lago estate in Florida, or let her and her friends stay at his New York City hotel for free for the weekend. She said she did not accept his offers.

She said Mr Trump had attempted to influence journalists by praising them.

“This is smart,” she writes, “because the media is full of people whose egos need stroking.”

Publication of Ms Kelly’s memoir was originally planned for November 2015, but it was delayed. It is called Settle for More.

(h/t BBC News)

Reality

It may be smart but this is quid pro quo, something Trump accused his political rival of, and it is highly illegal and unethical.

For months Trump and Fox News claimed quid-pro-quo in the emails of Hillary Clinton, which never materialized once investigators looked into the allegations.

Trump Broke Cuban Embargo, Report Says

Donald Trump’s hotel and casino company secretly spent money trying to do business in Cuba in violation of the U.S. trade embargo, Newsweek reported Thursday in a story that could endanger the Republican presidential nominee’s Cuban-American support in South Florida.

Trump Hotels & Casino Resorts paid at least $68,000 to a consulting firm in late 1998 in an attempt to give Trump’s business a head start in Cuba if the U.S. loosened or lifted trade sanctions, according to the front-page Newsweek report, titled “The Castro Connection.” The consulting firm, Seven Arrows Investment and Development Corp., later instructed the casino company on how to make it look like legal spending for charity.

The following year, Trump flirted with a Reform Party presidential run, giving a November 1999 speech to the Cuban American National Foundation in Miami where he cast himself as a pro-embargo hardliner who refused to do potentially lucrative business on the communist island until Fidel Castro was gone.

Neither Trump nor Richard Fields, the head of Seven Arrows consulting, responded to Newsweek’s requests for comment. Trump later sued Fields, and former Trump adviser Roger Stone suggested to Politico Florida that Fields might have acted on his own, without Trump’s approval, in exploring doing business in Cuba. Newsweek cited an anonymous former Trump executive who claimed “Trump had participated in discussions about the Cuba trip and knew it had taken place.” Trump hired the same consulting firm to try to develop a Florida casino with the Seminole Tribe.

When Seven Arrows billed Trump’s company to reimburse its Cuba work, according to Newsweek, it suggested using “Carinas Cuba” as charitable cover to get an after-the-fact Cuba license from the U.S. Office of Foreign Asset Control. OFAC doesn’t issue licenses after companies have already gone to Cuba, and the Catholic charity is actually named Caritas Cuba.

The report comes as Trump has worked to shore up Hispanic support in Miami-Dade County, where Cuban Americans comprise about 72 percent of registered Republicans. He met with a group of mostly Cuban Americans Tuesday in Little Havana, and earlier this month in Miami he blasted President Barack Obama’s reengagement policy with the island, after sounding OK with it last year.

Trump’s most prominent local Cuban-American supporter, U.S. Sen. Marco Rubio, called the Newsweek report “troubling.”

“The article makes some very serious and troubling allegations,” he said in a campaign statement. “I will reserve judgment until we know all the facts and Donald has been given the opportunity to respond.”

Recent polls show Trump tied in Florida with Hillary Clinton. While Cuban Americans lean heavily Republican, a Florida International University poll showed Miami-Dade Cubans only narrowly backed Trump over Clinton. The Democratic nominee favors lifting the trade embargo, a position the same poll shows is favored by a majority of local Cuban Americans.

Bloomberg Businessweek reported in July that Trump Organization executives traveled to Havana in late 2012 or early 2013 to scout potential business sites and investments.

Nelson Diaz, the Cuban-American chairman of the Miami-Dade Republican Party, questioned whether Trump would have really had a hand in the 1998 Cuba business exploration.

“I don’t know what the true story is,” he said. “If it’s true and evidence comes out that Trump himself personally sanctioned a violation of U.S. law, yes, that’s a problem, but the chance of that sort of evidence coming out — I don’t know.” There’s better evidence, he added, that Clinton tried to hide her emails as secretary of state from the public.

The Newsweek story got immediate morning drive-time play on Miami’s Spanish-language radio station.

“Everybody’s done business in Cuba,” one WAQI-AM 710 Radio Mambí listener said, sounding defensive about Trump.

“Yes,” host Bernadette Pardo said, “but here it’s illegal.”

Evidence Shows Trump Violated Laws, Used His Charity as a Slush-Fund

The Washington Post’s David Fahrenthold on Tuesday published a series of stunning revelations about Donald Trump’s charitable foundation, reporting that the Republican presidential nominee used money from the Trump Foundation to pay legal fees related to his businesses.

The report, citing tax records, said Trump had not made a single donation to his charity since 2008 and sometimes used money from others through the foundation to pay off legal expenses.

The money relating to those expenses, which reportedly amounted to $258,000 from the Trump Foundation, may have violated “self-dealing” laws that prohibit nonprofit leaders from using charity money for self-benefit or the benefit of their for-profit businesses, according to The Post.

“I represent 700 nonprofits a year, and I’ve never encountered anything so brazen,” Jeffrey Tenenbaum, who advises charities at the Venable law firm in Washington, told The Post, later describing the details as “really shocking.”

“If he’s using other people’s money – run through his foundation – to satisfy his personal obligations, then that’s about as blatant an example of self-dealing [as] I’ve seen in a while,” he continued.

Trump could be found in violation of self-dealing rules from the Internal Revenue Service, The Post said, which could require him to pay penalties or reimburse the foundation’s money. He is also facing scrutiny from the New York attorney general’s office, The Post added, which could find him in violation of the state’s charity laws.

Democratic nominee Hillary Clinton’s campaign fired off a response to the Post story soon after it was published.

“Clearly the Trump Foundation is as much a charitable organization as Trump University is an institute of higher education,” Christina Reynolds, the campaign’s deputy communications director, said in a statement. “Trump’s version of charity is taking money from others to settle his own legal issues and buy at least two pictures of himself, which experts say is a clear violation of laws governing charitable organizations.”

“Once again, Trump has proven himself a fraud who believes the rules don’t apply to him,” she continued. “It’s past time for him to release his tax returns to show whether his tax issues extend to his own personal finances.”

Trump’s campaign did not respond to a request for comment from The Post.

Here are some of the other revelations from Fahrenthold:

  • Trump’s Mar-a-Lago club in Florida faced $120,000 in unpaid fines from the town of Palm Beach stemming from a dispute over the size of a flagpole. The tallest a flagpole could be in Palm Beach was 42 feet, but Trump insisted on an 80-foot pole, claiming that “you don’t need a permit to put up the American flag.” The town agreed to waive the fines if Trump’s club made a $100,000 donation to a specific veterans charity. But Trump instead sent a check from his foundation, Fahrenthold reported.
  • Trump’s New York golf courses agreed to settle a lawsuit by making a donation to the plaintiff’s chosen charity, but the $158,000 donation was instead made by the Trump Foundation, according to The Post. The lawsuit was filed after a man, Martin Greenberg, hit a hole-in-one on the 13th hole at Trump’s Westchester, New York, golf course during a charity tournament, briefly winning $1 million, which was taken away after it was revealed that the shot did not travel a required 150 yards. Trump’s course was accused of intentionally making the hole too short.
  • Trump spent $30,000 of foundation money on two portraits of himself, one was found hanging in a Trump resort which is clearly not a charitable use.
  • Trump spent $5,000 of foundation money to buy advertisements for his hotel chain.
  • Trump spent $12,000 of foundation money to buy a football helmet signed by former NFL quarterback Tim Tebow.

(h/t Business Insider)

Trump Defies Law Forbidding Campaigns From Asking Foreigners for Donations

Donald Trump’s campaign is still soliciting illegal donations from foreign individuals – including members of foreign governments at their official email addresses — weeks after the campaign was put on notice by watchdog groups.

Foreign members of parliament from the United Kingdom and Australia confirmed to The Hill that they received fundraising solicitations from the Trump campaign as recently as July 12 — two weeks after a widely publicized FEC complaint issued on June 29 by non-partisan watchdogs Democracy 21 and the Campaign Legal Center.

These latest campaign finance violations were first reported by the investigative website “WhoWhatWhy” and have been confirmed by The Hill.

The Trump campaign did not respond to multiple requests for comment.

Terri Butler, a progressive Parliament member in Australia, told The Hill in a telephone interview Friday night that she was surprised to continue receiving fundraising solicitations from the Trump campaign at her official government email address.

She shared several of these emails, including one dated July 12 asking her to make a “generous contribution” to the Trump campaign.

Butler says she has no idea how her government email ended up on the Trump fundraising list.

“I haven’t signed up to any Trump lists,” she said.

Federal law on foreign money in campaigns is black and white, campaign finance lawyers on both sides of the political divide say.

It’s illegal for foreign individuals, corporations and governments to either give money directly to U.S. candidates or spend on advertising to influence U.S. elections.

And it’s also illegal for candidates to solicit foreign money, regardless of whether the donations ever materialize.

There is now vast documentary evidence that the Trump campaign is continuing to do just that.

Bob Blackman, a member of the U.K. House of Commons, shared with The Hill a fundraising solicitation sent to his government email address from the Trump campaign on July 12.

“I did not sign up, these are sent unsolicited,” Blackman told The Hill in an email.

Another member of the U.K. Parliament, Peter Bottomley, said he’d received three solicitations from the Trump campaign.

“Neither [Trump’s] sons nor anyone else has answered my questions about how they acquired my email nor why they were asking for financial support that I suppose to be illegal for [Trump] to accept,” Bottomley told The Hill in an email.

Fred Wertheimer, president of the campaign finance watchdog Democracy 21, says he’s never in his four-decade career seen a campaign continue to brazenly solicit foreign cash after being publicly called out.

“This is kind of absurd. I don’t know of anyone else in this situation who would just go on keeping on soliciting money from foreign interests,” he said. “I think the fact circumstances here are unprecedented.

“If they are put on notice that their fundraising solicitations of potential foreign donors are illegal and they keep doing it, then you potentially have knowing and willful violations of the law which moves this from civil violations to criminal violations,” Wertheimer continued.

Wertheimer said he’s going to assess the latest facts and may launch a criminal complaint in addition to his standing FEC complaint.

“It’s open and shut that federal candidates can’t solicit contributions from foreign donors,” he said.

“There’s a kind of arrogance about this,” Wertheimer added.

Larry Noble, the general counsel at the Campaign Legal Center, said the Trump campaign’s foreign solicitations are “really outrageous.”

“It is a serious violation of federal law to solicit political contributions from foreign nationals,” he said.

“There is no reason this should be happening,” he added. “While U.S. citizens do live abroad, they usually don’t have foreign government email addresses or are members of parliament, so they can’t try to explain this by saying they thought they were soliciting U.S. citizens abroad.

“If the Trump campaign has continued to solicit foreign nationals after the matter first came to light in June, this looks like either gross incompetence, gross negligence or willful conduct.”

(h/t The Hill)

Media

Links

Copy of Trump campaign email.

FEC Complaint Filed Over Trump Emails To Foreign Politicians

Two watchdog groups, the Campaign Legal Center and Democracy 21, said they will file a complaint with the Federal Election Commission, arguing that the Donald Trump campaign has broken federal law by sending fundraising emails to foreign elected officials.

“Donald Trump should have known better,” Paul S. Ryan, the deputy executive director at the Campaign Legal Center, said in a statement. “It is a no-brainer that it violates the law to send fundraising emails to members of a foreign government on their official foreign government email accounts, and yet, that’s exactly what Trump has done repeatedly.”

Fred Werthemier, the president of Democracy 21, said that Trump’s fundraising pleas to foreign members of parliament are “a strange and unique development that we have not seen before in campaign fundraising.”

Campaign finance law prohibits campaigns from knowingly accepting or soliciting contributions from foreign nationals. It’s not clear whether the Trump campaign purposefully sent the emails to foreign members of parliament.

The complaint from the two watchdog groups notes that elected officials in Iceland, Scotland, Britain and Australia have received the emails.

Members of parliament in Denmark and Finland also say they have received the fundraising pleas.

(h/t Talking Points Memo)

Links

Copy of the Trump email.

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.

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/

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