In 2014 he made about $1.75 million for giving speeches. Trump has not “won” a single one of these lawsuits. The events were in higher demand from students than online courses, according to Sexton. Trump University was created in 2006, one of a number of schemes Trump pursued in order to help maximize the income he could draw from his reputation as a successful businessman. Sexton said in a deposition there were a number of “status meetings” at the time about whether the business was worth continuing from a profitability standpoint, and it was decided that “given the progress on these events it is not worth investing in it on an ongoing basis.” He left the business at the end of July 2010. Let our journalists help you make sense of the noise: Subscribe to the, sued for fraud by the New York state attorney general, saying they offered a better education than top business schools, personal financial disclosure form he submitted last summer, join us with a tax-deductible donation today. On the same day, Trump's own stated estimates of his net worth have varied by as much as $3.3 billion. The New York Attorney General claims Trump made $5 million from the school. Trump initially invested about $2 million to develop Trump University, records and depositions indicate, and he later invested even more money. He even said at a South Carolina event last fall he “would have given all the money to charity,” had he not been sued. Trump owns a 30 percent stake in … In a 2012 deposition, when asked about advertising claims that “there’s money to be made” for students to attended Trump University, he likened the experience to attending Harvard. Trump University, Donald Trump’s real-estate institution, was a de jure one. Cohen provided a record of one such letter sent to the president of Fordham University, which Trump attended for two years before transferring … Cohen provided a record of one such letter sent to the president of Fordham University, which Trump attended for two years before transferring … Trump, too, has been emphatic in his defense of Trump University both in court and on the campaign trail. Donald Trump became the first billionaire president of the United States in January 2017. Listen on Apple Podcasts. The court said in its ruling that plaintiffs are expected receive 80 percent to 90 percent of what they paid for Trump University programs. The lawsuits filed in New York and California say that many of the introductory and three-day classes Trump University hosted were more intent on selling students on additional, expensive coursework and mentoring; Sexton has disagreed with this characterization and says the three-day seminars “included a great deal of substantive content.". Exit Full Screen. Despite Trump’s repeated mention of Wharton, his own classmates hardly remember him, and he even describes the school’s high-flung reputation as overwrought in his 1986 book, “Trump: The Art of the Deal.” “In my opinion, that [Wharton] degree doesn’t prove very much, but a lot of people I do business with take it very seriously, and it’s considered very prestigious,” Trump wrote. Did Donald Trump defraud thousands who paid up to $35,000 to learn his real-estate investing skills at the now defunct Trump University, as New … One of them signed each check written by Trump University, court documents indicate. Donald Trump promised to "drain the swamp" when he ran in 2016—but Mar-a-Lago and other Trump properties have become their own swamp … Trump's interest in Obama's academic performance reached such heights that in October 2012, Trump claimed he would make a $5 million charitable donation if … The company also generated revenue at various points through the online coursework and by licensing the Trump name to another live events business, called Trump Institute. The answer begins with James A. Nolan, the Penn admissions officer who interviewed Trump and ushered his application through the vetting process, which he says he did at the behest of Trump… By signing up, you agree to our privacy policy and terms of use, and to receive messages from Mother Jones and our partners. “This never was a university. Mr. Trump's late brother, Frederick Trump Jr., was a graduate of Lehigh. It’s going to do very well, and it will continue to do very well.”. Complainants say they were told Trump was doing this for his legacy. The core of his fortune is tied up in a half-dozen buildings in and around midtown Manhattan in New York City. But the massive sums paid by former Trump University students, and Trump University’s intricate process for selling them on more coursework, suggest the business was more than a passion project. Trump “felt this was a very good business, and he wanted to put his own money into it,” Sexton said. That seems like a lot until we compare it to Hillary Clinton’s speaking fees. Because it … But the question about how much money Trump made from his eponymous university has become a critical one for two reasons: First, how much he profited could be a key factor in the lawsuits alleging Trump bilked student out of thousands of dollars for the get-rich-on-real-estate courses. It rented its space from a Trump building at 40 Wall Street in New York, and Trump Organization handled retirement plans for Trump University staff. For example, Trump was one of the only signatories on Trump University checks, along with his children and Trump Organization Chief Financial Officer Allen Weisselberg. During his victory speech on Tuesday night, following wins in the Michigan and Mississippi GOP primary elections, he vowed Trump University would come back, better and more successful than ever. We noticed you have an ad blocker on. Inexpensive, too! Matejek said in a deposition that as early as late 2009, Trump University was delinquent on its rent to the Trump Organization. Donald Trump speaks as Trump University president Michael Sexton looks on, during a May 23, 2005, news conference announcing the establishment of the university in New York City. Trump University: Teaching real estate — and making money, Trump beats Rubio in another Florida poll, Republican senators hold their noses for Cruz, ‘It’s all fallen apart’: Newsom scrambles to save California — and his career, Trump went 'ballistic' after being tossed off Twitter, Pelosi to move forward with impeachment if Pence doesn't act to remove Trump, Biden dresses down his Covid team over plans to speed vaccinations. The New York Attorney General announced the $25 million settlement Friday. Trump University, complaint, Sept. 26, 2012: While Trump University’s website has publicly claimed that 95% to 98% of students are satisfied … But it was very important.”. What was Trump University? Today, many Trump brands pay licensing fees to use the name and are not owned by Trump Organization - including the Trump Ocean Club and Trump Fine Foods. Many people believe that higher education is a de facto scam. The Trump University scam was a way to prey on the vulnerability of economic strivers. First thing first, Trump University was never a university. Cohen v. Trump makes essentially the same claims as Low v. Trump, but on behalf of anyone who purchased Trump University classes after January 1, 2007. Both estimates are likely chump change for Trump. “We have a lot of great people who want to get back into Trump University.”, And earlier this week, he recorded a YouTube video of himself reading positive reviews from former students and saying plaintiffs in the lawsuit “just want their money back.”. An interactive “timeline of Trump’s finances” breaks that $427.4 million down: Trump’s taxes show that he earned $197.3 million from The Apprentice … This site is protected by reCAPTCHA and the Google Privacy Policy and And with Trump refusing to release his taxes, the vague response about his earnings from Trump University could add fuel to the accusations that Trump has something to hide by being evasive about his personal finances. Trump said in a recent deposition that he paid former students millions of dollars in refunds. GOP front-runner Donald Trump has been getting hammered by his rivals over Trump University (later named the Trump Entrepreneur Initiative). Trump University Was Founded in 2005 & 9,000 Paid for Real Estate Seminars Before it Folded in 2010 Can you pitch in a few bucks to help fund Mother Jones' investigative journalism? Sexton was a businessman, not a real estate mogul; he said in one deposition that his only experience with real estate transactions was buying his own home. As a presidential candidate, Trump only has to file disclosure forms revealing his income of the previous year, and Trump University started in 2005. Trump has fought back—both against his Republican opponents and in court—insisting the company was on the up-and-up and beloved by students. | Getty. But how big a moneymaker was this school—supposedly designed to teach students to be successful in business—for its namesake? The University refused to disclose Trump’s donations, saying donor information is private. A 1968 Wharton graduate who did not want to be named said that Trump “sat in the front row [of their Real Estate class], raised his hand a lot to answer questions and had a heavy New York accent.” 1968 Wharton graduate Roger Fulton Jr. made similar remarks, adding that he recalls Trump as “very focused on his studies.” It's us but for your ears. An October 2008 check entered as evidence also shows Trump distributing $500,000 to himself. Donald Trump rarely misses an opportunity to brag about his wealth — except when it comes to Trump University. The suit, Makaeff v. The online courses launched in 2005 soon evolved into in-person seminars that promised students would learn from professors “hand-picked” by Trump. “Trump University has no interest in taking care of its customers,” said Mr. Tufenkian, who paid $35,000 for a “Gold Elite” class, which he said at the time wiped out much of his savings. Schneiderman in 2013 brought a fraud lawsuit against Trump University claiming that the school was nothing but a scam designed to make money for Trump by falsely promising wannabe real estate developers they would learn the tricks of the trade from Trump and his hand-picked teachers. Donald Trump has been aggressively questioning Barack Obama's academic record, suggesting that the president was a "terrible student" who did not deserve to get in to Columbia University … And 794 people bought longer mentorship courses that ran up to $35,000. Trump owns a 30 percent stake in … But Trump has so far refused to release those documents. How much money did trump make from trump university July 13, 2020 Coming off his success as a reality television show host, Trump claimed that the Trump University program was devoted to helping people gain real estate skills and knowledge. Trump University was, at that point, focused on fulfilling its obligations to students and winding down operations, Sexton said. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2021 demands. But from the start, the business was financially intertwined with the conglomerate Trump Organization, which oversees other Trump holdings, records show. He’s said it’s “a million, or more." Expenses including automobile insurance were covered by the larger Trump Organization, and Trump University shared its IT services with the larger organization as well, Matejek said. “We have a lot of great people who want to get back into Trump University. Trump had a different idea: He would fund Trump University, and Sexton would have a stake in the company, Sexton said in the 2012 deposition. Donald Trump “personally pocketed $5m” from his Trump University “scam”, New York’s attorney general said on Thursday. Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do. A federal judge finalized the $25 million settlement between President Trump and students of his now shuttered Trump University on … “If I become president that means Ivanka, Don, Eric and my family will start it up,” he said. Ivanka Trump donated … Trump noted in a recent deposition that he didn’t really need the revenue from Trump University and said he hoped he could “impart certain wisdom” on people through the courses. We're a nonprofit (so it's tax-deductible), and reader support makes up about two-thirds of our budget. The business appeared to be eroding too by then too: Trump University had begun offering large expos that weren’t turning big profits. The “university” published advertisements, which Trump personally approved, promising that … 1. The Trump Entrepreneur Initiative, the new name given to Trump University after New York officials objected to the term ‘university’ being used, placed the … More details about how Trump profited from the school, which hasn't held seminars or classes for several years, could be spelled out in Trump’s tax returns. Steps from Trump Tower in Manhattan, the 43-story 1290 Avenue of the Americas skyscraper spans an entire city block. Terms of Service apply. Altogether, 9,208 people attended the three-day workshops for Trump University, which had a price tag of $1,495 that two people sometimes split between them, Sexton said in an affidavit. Copyright © 2021 Mother Jones and the Foundation for National Progress. And Trump niversity’s rating from the Better Business Bureau, meanwhile, sank to a D-. Clinton gave 52 speeches in … (Trump promoted the company’s courses by saying they offered a better education than top business schools.) The school has been defunct since 2011. To prosecutors, this arrangement between Trump University and the Trump Organization are more than semantics: They show how connected Trump was to the business, even if he wasn’t making most hiring decisions or speaking at events. Steps from Trump Tower in Manhattan, the 43-story 1290 Avenue of the Americas skyscraper spans an entire city block. Trump didn’t admit liability, according to the Los Angeles Times, although the $25 million he will pay includes $1 million in penalties to the state of New York and $21 million to former students. Donald Trump released his financial disclosure today and says he made more than $200 million during the 14 seasons of The Apprentice reality show. The Trump University scam was a way to prey on the vulnerability of economic strivers. For starters, it wasn’t a “university” in the conventional sense, but a real-estate seminar business that charged students a reported $1,495 to $34,995 to supposedly learn the Manhattan mogul’s insider success secrets. Mrs. Clinton makes about $12 million a year for giving speeches. Trump University was created in 2006, one of a number of schemes Trump pursued in order to help maximize the income he could draw from his reputation as a successful businessman. “I mean, this was a very important thing for me,” Trump said. “It wasn't a big monetary thing, the Trump, the school. Contracts filed as evidence in New York show an event speaker, Steven Goff, was paid 10 percent or more in commission on sales of Trump University courses, creating an incentive to sell expensive courses. Trump had a … By the end of the year Trump, Sexton and one other investor, a contact of Trump’s named Jonathan Spitalny who had helped connect the two, had hammered out an agreement in which Trump would own more than 90 percent of the business, according to court records in the case brought by the New York attorney general’s office. Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox. Pricey, yes, but the playbook notes that the list price of the Trump Gold Elite package is $49,415, a savings to students of 29 percent. All three are currently pending, and none are on the verge of dismissal whatsoever. Even before … His embattled education venture is being sued for fraud by the New York state attorney general and by a handful of former students who allege they took on thousands of dollars in debt to attend real estate seminars that made false promises of future riches. Sexton was paid $250,000 per year to operate the business and had a 4.5 percent ownership stake. Trump's lawyers did not comment for this article. But for Trump, the glowing reviews, filled out while instructors looked on, prove Trump University was a success. In a 2009 email exchange about paying $15,000 for a radio campaign in New York, for example, former Trump University Controller Steven Matejek explained that after they’re cut, “checks then always go to Trump Org for final review and signature.”. But the personal financial disclosure form he submitted last summer showed that he had earned a whopping $11,819 from the education company in the previous year. At the events, held in hotel ballrooms, instructors taught about making money by investing in foreclosed homes and other real estate ventures. The category ‘Other University priorities’ refers to gifts donated to the University for a specific school or purpose, instead of gifts which are donated directly to the Penn Fund. Help Mother Jones' reporters dig deep with a tax-deductible donation. Trump University, LLC Tarla Makaeff, who paid nearly $60,000 to Trump University in 2008, brought a class action against Trump University on April 30, 2010, in the U.S. District Court for Southern California. Subscribe today and get a full year of Mother Jones for just $12. Trump has often given much higher values for his wealth than organizations estimating it. The university invited the president to speak at its commencement in 1988, awarding him the honorary degree. A lawyer for Trump could not be reached for comment. (Trump has since said in depositions he did not select the event speakers.) Ultimately, Trump’s goals are to remain a star, make money, and solidify his clout. During his victory speech on Tuesday night, following wins in the Michigan and Mississippi GOP primary elections, he vowed Trump University would … The corrosive effects on democracy are collateral damage. Missing out on the latest scoops? The idea for Trump University came from with Michael Sexton, a management consultant with a master’s degree from Tuck School of Business at Dartmouth who, according to a sworn deposition, approached Trump with the concept of licensing his name for online education courses in 2004. The deposition refers to a payment of $1.5 million to Trump. The DP searched through 32 annual giving reports issued by both Penn and Wharton between 1968 and 2007. Donors can select where they wish to send their gift when they make it. He’s also said it’s possible he'll bring back Trump University in the future — or his children will. Former students filed a class-action fraud lawsuit in California in April of that year. Matejek also said that Trump repaid himself the money that he invested, plus “it had to have been five million or, or, several million” more in capitol distributions. Donald Trump has always craved fame, a … Donald Trump “personally pocketed $5m” from his Trump University “scam”, New York’s attorney general said on Thursday. All Rights Reserved. And Trump's lawyers have acknowledged the billionaire profited from Trump University — but not how much. Trump initially invested about $2 million to develop Trump University, records and depositions indicate, and he later invested even more money. That’s not too yooge, but it is sort of impressive. The truth is that there are three lawsuits currently pending against Trump in connection with Trump University. So there’s no telling what he made from the venture in its first years—unless he releases his tax filings going back a decade. Donald Trump Agrees to Pay $25 Million in Trump University Settlement Donald J. Trump in 2005, when he announced the establishment of Trump University. In three weekly statements on profits and losses from 2010 Trump University seminars filed in the case, Trump University showed a loss in two of them. Trump himself did not return the DP’s numerous requests for comment. And it finally scrubbed "university" from its name the same year, after years of pressure to do so from the New York attorney general. Save big on a full year of investigations, ideas, and insights. “They say go to Harvard, great school, blah, blah, blah, and I think this is — except I think we have a higher approval rating than Harvard if you want to know the truth,” Trump said. By 2010, Trump University had waded into legal trouble. In … President-elect Donald Trump has settled three outstanding lawsuits related to his now-defunct Trump University. How much does Trump make a year from speaking fees? Can you pitch in a few bucks to help fund Mother Jones' investigative journalism? Hillary Clinton says Donald Trump is no stranger to pay-to-play politics. One was filed by the State of New York, and the other two are private class action lawsuits. Sign up for POLITICO Playbook and get the latest news, every morning — in your inbox. Trump has testified that "my net worth fluctuates, and it goes up and down with markets and with attitudes and with feelings—even my own feelings". Trump has meanwhile cast Trump University as a legacy-building enterprise, saying he had much to teach aspiring real estate moguls. If elected president, “Ivanka, Don, Eric and my family will start it up” again after the lawsuit is over, Trump told supporters after his primary rout Tuesday night. “This never was a university. In depositions for the case, Trump has repeatedly said he had little to do with Trump University’s day-to-day operations, such as crafting the specific curricula taught at the sessions. 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