Trump University ran a real estate training program from 2005 to 2010. Despite its name, the organization was not an accredited university or college. It did not give college credits or offer college degrees.
Instead, Trump University provided short seminars (often called “retreats”) and used deceptive marketing and high-pressure tactics to sell them.
Free 90-minute introductory 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 $1,495 seminar and ultimately the advanced seminars such as the “Gold Elite” program costing $35,000.
Seminars attendees were urged to cash out their savings and max out their credit cards for a higher-priced program.
An investigation in Texas was initiated by then Governor Abbott. Abbott’s office began probing Trump University in 2010, after Texas-based Better Business Bureaus reportedly received 30 complaints about the school in the previous two years.
“Essentially what Trump U promises is virtually impossible to achieve,” wrote Assistant Attorney General Rick Berlin in an email to Trump lawyer’s Michelle Lokey. “The audience Trump U targets for the initial workshop is the real estate novice. In effect, Trump U promises to teach these novices everything they need to know to be a successful residential real estate broker — in 3 days. In Texas, to become licensed as a real estate broker you must have 900 hours of classroom instruction and 2 years selling experience. The extensive training is required for good reason: to protect the public.”
“In addition to encouraging unlicensed activity (which is a misdemeanor in Texas), the course materials in a number of respects are simply wrong under Texas law,” Berlin wrote later in the email. “In short, we continue to have serious concerns about the course materials as well as the marketing and sales tactics used by Trump U in Texas.”
Trump University stopped operations in Texas and the investigation was dropped. Later, Trump made two contributions to Abbott’s gubernatorial campaign.
In 2011, amid multiple investigations, lawsuits and student complaints, Trump University ceased operations nationwide. The company became the subject of an inquiry by the New York Attorney General’s office for illegal business practices, which resulted in a lawsuit. In federal court, two more lawsuits were filed for using misleading marketing practices and engaging in aggressive sales tactics.
Despite repeatedly insisting he would not settle, Trump settled all three lawsuits in November 2016 for a total of $25 million after being elected president.