This post is from Daily Wire, and it lists a number of Donald Trump’s business misadventures:
- United States Football League
- Trump Steaks
- Trump Vodka
- Trump’s board games
- Trump Airlines
- Trump Mortgage
- Trump Magazine
- Trump hotels and casinos (four bankruptcies)
- Trump University
But most interesting of all is the Trump University case.
Here’s an article from National Review about that:
Many people believe that higher education is a de facto scam. Trump University, Donald Trump’s real-estate institution, was a de jure one.
First thing first, Trump University was never a university. When the “school” was established in 2005, the New York State Education Department warned that it was in violation of state law for operating without a NYSED license. Trump ignored the warnings.
[…]Trump University is currently the defendant in three lawsuits — two class-action lawsuits filed in California, and one filed in New York by then-attorney general Eric Schneiderman, who told CNN’s New Day in 2013: “We started looking at Trump University and discovered that it was a classic bait-and-switch scheme. It was a scam, starting with the fact that it was not a university.”
Trump U “students” say the same. In his affidavit, Richard Hewson reported that he and his wife “concluded that we had paid over $20,000 for nothing, based on our belief in Donald Trump and the promises made at the [organization’s] free seminar and three-day workshop.” But “the whole thing was a scam.”
In fact, $20,000 is only a mid-range loss. The lead plaintiff in one of the California suits, yoga instructor Tarla Makaeff, says she was “scammed” out of $60,000 over the course of her time in Trump U.
How could that have happened? The New York suit offers a suggestion:
The free seminars were the first step in a bait and switch to induce prospective students to enroll in increasingly expensive seminars starting with the three-day $1495 seminar and ultimately one of respondents’ advanced seminars such as the “Gold Elite” program costing $35,000.
At the “free” 90-minute introductory seminars to which Trump University advertisements and solicitations invited prospective students, Trump University instructors engaged in a methodical, systematic series of misrepresentations designed to convince students to sign up for the Trump University three-day seminar at a cost of $1495.
[…]But according to the New York complaint, none of the instructors was “handpicked” by Trump, many of them came from fields having nothing to do with real estate, and Trump “‘never’ reviewed any of Trump University’s curricula or programming materials.” The materials were “in large part developed by a third-party company that creates and develops materials for an array of motivational speakers and seminar and timeshare rental companies.”
Furthermore, Trump’s promises that the three-day seminar ($1,495) would include “access to ‘private’ or ‘hard money’ lenders and financing,” that it would include a “year-long ‘apprenticeship support’ program,” and that it would “improve the credit scores” of students were empty.
How is it that the mainstream media never told us about this? I suspect they will – once Trump is declared the Republican nominee. For now, they prefer to keep it hidden.
Donald Trump inherited a lot of money from his father. Should we assume that he knows something about business just because he did? Or should we look at his record and see how good of a businessman he really is?