Trump University

Trump University was an American commercial education business founded in 2004 by Donald Trump, Michael Sexton, and Jonathan Spitalny. Although its name suggested an institution of higher education, it was not an accredited university or college. It did not award degrees, provide college credit, grade students, or operate as a conventional degree-granting school. Instead, it sold short seminars, workshops, and higher-priced mentoring packages focused primarily on real-estate investing, asset management, entrepreneurship, and wealth creation. The business began with a plan for online education. It soon expanded into live events held in rented venues, including hotel meeting rooms. Customers were commonly introduced to the business through low-cost or supposedly free presentations and were then encouraged to purchase more expensive programs. Offerings included three-day seminars and advanced packages that could cost as much as $35,000. The business promoted the association with Trump as a central element of its appeal, presenting his business experience and personal endorsement as the basis for the instruction. Trump owned a reported 93 percent of the company, while The Trump Organization operated the enterprise. The company’s commercial model and promotional claims became increasingly controversial. Former customers and investigators alleged that marketing overstated the role Trump played in selecting instructors and implied that participants could achieve financial success through the program. Critics also alleged that sales personnel used aggressive, high-pressure techniques and that introductory events functioned primarily as sales opportunities for more expensive programs. Trump University disputed these accusations and pointed to favorable customer evaluations, while former students and investigators questioned how those evaluations were collected. The use of the word “university” attracted regulatory attention because the company lacked the authorization and accreditation ordinarily associated with that term. New York education officials warned the business that its name and live instruction practices could violate state law. In 2010, the company changed its name to The Trump Entrepreneur Initiative, after previously using Trump Wealth Institute for a period. Its real-estate training program operated from 2005 to 2010, and the enterprise largely stopped operating around 2010 before ceasing operations in 2011. The brand became the subject of investigations and civil litigation in several states. New York authorities alleged that it used deceptive marketing and unlawful business practices, while federal class actions brought by former customers alleged fraud, misrepresentation, and improper sales tactics. One case also involved a counterclaim by Trump University against a former customer, which was ultimately dismissed after appellate and district-court proceedings. The litigation received renewed public attention during Donald Trump’s 2016 presidential campaign. In November 2016, after Trump had been elected president, he and the companies agreed to settle three lawsuits for a total of $25 million. The settlement resolved the litigation without a trial determining all of the underlying allegations. Trump University therefore remains notable less as an education brand than as an example of a branded seminar business whose marketing, regulatory status, and sales practices generated extensive legal and political controversy.

Trump University originated in 2004 when Michael Sexton developed a plan for a real-estate training business and presented it to Donald Trump. Rather than merely licensing Trump's name for a fee, Trump chose to become the principal owner. Trump, Sexton, and Jonathan Spitalny incorporated the company as a New York limited liability company, with Trump holding a reported 93 percent interest. The Trump Organization operated the business. The enterprise formally launched its education program on May 23, 2005. Its initial concept emphasized online learning, but the company rapidly moved toward in-person seminars. The core product was real-estate investment instruction, supplemented by material relating to entrepreneurship, asset management, and wealth creation. Promotional messaging emphasized Trump's personal business reputation and suggested that his knowledge could help ordinary customers become successful investors. The sales process generally began with a free or relatively inexpensive introductory event held in a hotel or other rented facility. Attendees were then encouraged to purchase a three-day seminar or a more expensive mentoring package. Reported prices ranged from approximately $1,495 for some seminars to $35,000 for the Gold Elite program. The business sold thousands of tickets and packages. Customers and investigators later alleged that the events contained limited instructional content and were designed chiefly to move participants toward increasingly costly purchases. The business also attracted criticism for its representations about instructors and customer satisfaction. Trump promoted the idea that he had personally selected instructors, but later testified in a deposition that he had not done so. Former participants disputed claims that customer reviews were independently collected and alleged that favorable evaluations were encouraged or tied to receiving certificates. Trump University rejected the characterization of the business as fraudulent and defended its customer approval figures. Regulatory objections focused in part on the company’s use of the word university. New York officials advised the company that it lacked the necessary authorization to use the term and to conduct certain forms of live instruction. The company used Trump Wealth Institute briefly in 2008 and changed its name to The Trump Entrepreneur Initiative in June 2010. The real-estate training program ran from 2005 to 2010, and the company largely ceased operations in 2010 before ending operations in 2011. A separate entity, Trump Institute, operated under a licensing arrangement. It was owned by Irene and Mike Milin and was not owned by The Trump Organization. The arrangement ended in 2009 and was not renewed. Trump promoted the separate operation in recorded materials, but the two businesses were legally distinct. Investigations and lawsuits followed. New York officials investigated alleged violations of education and consumer-protection law, while Texas consumer-protection authorities investigated allegations of false and misleading practices and concluded that the business should cease operating in the state. The proposed Texas action was not filed. In New York, a civil lawsuit filed in 2013 alleged that the company misled thousands of consumers into paying as much as $35,000 for training. A state judge later found Trump personally liable for operating the company without the required business license. Two major federal class actions were also filed. Tarla Makaeff sued in 2010, and the case later became Low v. Trump University, LLC after Sonny Low replaced her as lead plaintiff. The court certified a narrower class involving consumers in California, Florida, and New York and permitted claims concerning deceptive practices and misrepresentation to proceed. A separate action, Cohen v. Trump, alleged a nationwide scheme involving the sale of live events and invoked federal racketeering law. Litigation over a defamation counterclaim brought by Trump University against Makaeff reached the Ninth Circuit, which held that the company was a limited-purpose public figure for purposes of the claim; the defamation claim was later dismissed, and the court ordered reimbursement of Makaeff's legal fees. The disputes became politically prominent during Trump's 2016 presidential campaign. Although Trump had repeatedly said that he did not intend to settle, the parties resolved the three principal lawsuits in November 2016 for a total of $25 million. Trump University then remained defunct, with its legacy defined by its branded seminar model, regulatory disputes, consumer allegations, and settlement rather than by an ongoing education operation.

• 2016

  Civil lawsuits settled

  [1]Trump Universityen.wikipedia.org

  The principal lawsuits are resolved through a $25 million settlement.

• 2013

  New York civil action filed

  [1]Trump Universityen.wikipedia.org

  New York files a civil lawsuit alleging illegal business practices and false claims.

• 2011

  Operations cease

  [1]Trump Universityen.wikipedia.org

  Trump University ceases operations after investigations, complaints, and litigation.

• 2010

  Name change and operational wind-down

  [1]Trump Universityen.wikipedia.org

  The company adopts The Trump Entrepreneur Initiative and largely stops operating its original seminar business.

• 2008

  Temporary use of Trump Wealth Institute name

  [1]Trump Universityen.wikipedia.org

  The company uses the Trump Wealth Institute name for a period.

• 2005

  Education program launches

  [1]Trump Universityen.wikipedia.org

  The business formally launches its commercial education program and expands from its original online concept into live seminars.

• 2004

  Company founded

  [1]Trump Universityen.wikipedia.org

  Donald Trump, Michael Sexton, and Jonathan Spitalny establish the New York business, with Trump becoming its principal owner.

The business positioned itself as a practical route to real-estate investing and financial success, using Donald Trump's name, image, and claimed business expertise as its principal trust and marketing asset. It operated as a commercial seminar and coaching company rather than an accredited university.

• Seminar marketing · 2005

  Introductory workshops

  Introductory presentations, often promoted as free or low-cost workshops, served as the entry point to the business. They were held in rented venues and introduced attendees to real-estate investment concepts while also encouraging them to purchase longer and more expensive programs.

• Real-estate education · 2005

  Three-day real-estate seminars

  The central paid product was a short, intensive seminar covering real-estate investing and related wealth-building topics. The program was marketed as practical instruction linked to Trump's experience. Investigators and former customers later disputed the depth of the content and alleged that the events were used to sell advanced packages.

• Mentoring program · 2005

  Silver, Gold, and Gold Elite programs

  These higher-priced programs offered additional seminars, mentoring, or related materials and services. Reported prices extended from roughly $10,000 to $35,000, with Gold Elite described as the highest-priced package. Their sale became central to later allegations concerning aggressive upselling and misleading claims.

• Business education · 2004

  Online education and training materials

  The original business plan emphasized online education and included materials addressing real estate, entrepreneurship, asset management, and wealth creation. In practice, the company’s commercial emphasis shifted toward live events and bundled seminar offerings.

• 2016

  Settlement of consumer litigation

  Three lawsuits involving the business and Donald Trump were settled for $25 million after years of allegations concerning misleading marketing and aggressive sales practices.

  Source

• 2013

  New York deceptive-practices lawsuit

  The New York attorney general alleged that Trump University operated a bait-and-switch scheme and made false claims to persuade consumers to buy expensive programs.

  Source

• 2010

  Regulatory challenge to university designation

  New York officials alleged that the business was misleading consumers by using the word university without the required charter or authorization. The company subsequently changed its name.

  Source

Read more

• 2005Trump-endorsed knowledge and success positioning

  United States

  Marketing framed Donald Trump's business experience and personal involvement as the principal reason customers should trust the programs. Promotional language suggested that his methods could help ordinary people become successful real-estate investors.

  Outcome. The positioning drove enrollment but later became part of regulatory investigations and consumer litigation.

  Source

• 2016

  Settled three civil lawsuitsOther

  Background

  The company and Donald Trump faced a New York enforcement action and two federal class actions concerning alleged deceptive practices and consumer misrepresentation.

  Action taken

  The parties agreed to a combined civil settlement of $25 million.

  Aftermath

  The settlement ended the principal litigation without a full trial resolving every allegation.

  Total civil settlement. $25 million (November 2016)

  Source

• 2010

  Adopted The Trump Entrepreneur Initiative nameStrategy

  Background

  New York regulators objected to the use of university terminology by a non-accredited commercial training business.

  Action taken

  The company changed its name from Trump University to The Trump Entrepreneur Initiative.

  Aftermath

  The original seminar operation largely wound down and ceased operations by 2011.

  Source

• 2010

  Trump University changes its name to The Trump Entrepreneur Initiative[1]Trump Universityen.wikipedia.org

  Regulation

  Following regulatory pressure over its name and education activities, the company adopted The Trump Entrepreneur Initiative as its formal name.

• 2005

  New York education officials challenge the use of the word university[1]Trump Universityen.wikipedia.org

  Regulation · Other

  The New York State Department of Education warned that the company was using the term university without the required charter or authorization for its instructional activities.

1. 1Trump Universityen.wikipedia.org