A little-known part of Donald Trump’s business venture was revealed Thursday, and he failed to obscure the unflattering image it revealed.
In the Republican debate, Trump University was referenced, a failed – and illegally operated – foray into the education business.
Trump University, a series of seminars and workshops on real estate, faced three lawsuits from and on behalf of former students by the time it shuttered, and fraud accusations haunt the venture, according to The Washington Post.
Marco Rubio and Ted Cruz hammered Trump for his involvement and the questions it raised about Trump’s past during the debate.
“I don’t know anything about starting a university, a fake university. A fake university! There are people that borrowed $36,000 to go to Trump University and they’re suing him now,” Rubio said. “Thirty-six thousand dollars to go to a university. That’s a fake school. And you know what they got? They got to take a picture with a cardboard cutout of Donald Trump. That’s what they got for their $36,000.”
Rubio might exaggerate the cost, but not by much.
Trump University was never accredited as a university. Founded in 2004, the name is a marketing ploy more than anything else. Students who paid for the seminar have claimed they paid almost $1,500 for the seminar, then were “lured into paying” about $25,000 for more classes, programs, and mentorships.
Attorneys for Trump University claim the majority of students were satisfied with the program and only a few had complaints. Pressured by the New York State Education Department, the program renamed itself the Trump Entrepreneur Initiative by 2010 to avoid misleading or confusing prospective students.
Introductory seminars were offered for free, and students could pay for additional seminars, as well as mentorships, workshops, and other courses. More than 9,000 students paid the $1,495 for seminars, and almost 800 paid for further instruction, which could run as high as $35,000.
In 2013, New York Attorney General Eric Schneiderman filed a $40 million lawsuit “alleging that Trump had illegally operated an unlicensed university and defrauded students,” The Post noted.
Trump has denied any wrongdoing in connection with Trump University, but the judge ruled that “Trump is personally liable for illegally operating a university without a proper license,” Emma Brown wrote, but New York’s statute of limitations might prevent Trump University students from receiving restitution.
The Trump campaign has done an impressive job in obscuring the less flattering aspects of Trump’s past, but the GOP debate brought some of that out. When it came out, Trump struggled to countered the public reveal.
