August 31, 2013

8 Cringeworthy Allegations From The New Lawsuit Against Donald Trump

New York is suing Trump University for alleged fraud.

Until this weekend, when the suit was announced, most of us were probably unaware that there was such an institution.

But for more than 5,000 Americans, it was a very real organization that NY Attorney General Eric Schneiderman says collectively cost them $40 million.

We went back through the full complaint, and it basically sounds like an episode of "Seinfeld" (specifically, the one where Kramer recreates "The Merv Griffin Show" in his apartment using a set he found in the dumpster) crossed with a pyramid scheme.

Here are the best and most cringeworthy allegations from the suit:

Instead of Trump actually attending any of the seminars, attendees were often offered the opportunity to instead take a photo next to a life-size cutout.
In addition to that, the theme song from Trump's show "The Apprentice" was played at the beginning and end of each seminar.
A special database of lenders the "University" purportedly had insider access to was actually just "a list photocopied from an issue of Scotsman Guide, a commercially available magazine," the suit says.
Attendees were told there was a toll-free "hotline" featuring instructors taking questions about real estate investing. The complaint says no such line existed, and instructors only made themselves available to individuals who'd signed up for the "elite" version of the seminar — "and often, not even then."
But, students were asked to call their credit card companies during breaks in the seminar to ask that their credit limits be raised.
The instructors repeated the business' ad claims that they'd been hand-picked by Trump himself, when in fact none of them were. And some of the instructors came to the organization after their own failed real estate investments bankrupted them.
The organization comes pretty close to sounding like a pyramid scheme: The "students" would first attend a free seminar enticing them into paying $1,495 for a subsequent three-day seminar where they'd learn "everything they needed to know to start investing." Instructors at the three-day seminar would instead warn they would need to purchase additional programs — ideally the $35,000 "elite" program — or they would not succeed.
Trump pocketed more than $5 million despite insinuating he would not profit directly from the organization.

For more than five years, the group allegedly ignored the warnings of the New York State Education Department to correct its business practices and change its name (of note: state comptroller Thomas DiNapoli just issued a scathing report of that agency).

And Trump U. has still never applied for a license to operate as an educational institution.

Here's the full complaint:

NY Attorney General vs. Trump University, Verified Petition by


The above statements do not represent those of Weston Legal or Michael Weston and they have not been reviewed for accuracy. The statements have been published by a third party and are being linked to by our website only because they contain information relating to debt. Nothing in this article should be construed as legal advice given by Weston Legal or Michael Weston. To view the source of the article, please following the link to the website that published the article. Articles written by Michael W. Weston can be viewed here: To report any problem with this article please email



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