Now-Defunct Trump U. Faces Fraud Lawsuits

NY Times: Trump University, “A Series Of Seminars Held In Hotels,” Faces Three Pending Lawsuits Alleging Misrepresentation. The New York Times described GOP presidential front-runner Donald Trump's Trump University as “not a real university at all, but a series of seminars held in hotels across the country.” The now-defunct Trump University is currently facing multiple pending lawsuits brought by former students and by the state of New York, alleging misrepresentation:

The now-defunct Trump University, the subject of one of Marco Rubio's attacks on Donald J. Trump at the Republican presidential debate on Thursday night, was not a real university at all but a series of seminars held in hotels across the country that promised to share Mr. Trump's real estate investing acumen with students. It is still embroiled in lawsuits accusing it of misrepresentation.

Those who ultimately bought premium packages paid as much as $35,000 for the privilege of additional training, called mentorships and apprenticeships.

“Seventy-six percent of the world's millionaires made their fortunes in real estate,” Mr. Trump said in an email marketing blast sent to tens of thousands of potential customers. “Now it's your turn. My father did it, I did it, and now I'm ready to teach you how to do it.”

As many as 7,000 people across the country bought the sales pitch, spending an estimated $40 million. Both the State of New York and many of the students are now suing Mr. Trump for misrepresentation. Three cases are pending: one in New York brought by the attorney general and two in California, certified as class actions. [The New York Times, 2/26/16]

New Court Documents Detailing Trump U. Business Practices Released. On May 31, unsealed court documents containing internal marketing “playbooks” and testimonies from former employees of Trump University were released to the public. Training documents and testimonies detailed instances where employees were instructed to “upsell” more expensive courses to students and “counter any objections or doubts they may have,” employing allegedly fraudulent marketing practices that may have put students in financial peril. [CNN, 5/31/16]

Trump Campaign Releases Video Of Former Trump U. Students Praising Seminar Program

Trump Campaign Releases Video Of Former Trump U. Students Calling Seminars “Outstanding.” On June 1, Trump’s campaign released a video of former Trump University students praising the real estate seminars, calling the courses “outstanding” and saying that “we never felt pressured to do anything we didn't want to do.” From The Washington Post:

A day after newly released testimony placed Donald Trump under fresh scrutiny over the practices of the now-defunct Trump University, the Trump campaign fought back, releasing a brief online video featuring former students speaking positively about their experience there.

In a video posted on the presumptive Republicans presidential nominee's YouTube page Wednesday, the words “The Truth About Trump University,” are followed by clips of three former students insisting they had a good experience and were never pressured to do things they didn't want to do.

“I must tell you that the courses that I took were outstanding,” says Kent Moyer, the founder of the World Protection Group, which bills itself as an international security firm." Moyer said he still listens to audio of the courses he took every now and then.

Casey Hoban, a founder of Trimino, which makes protein-infused water, says in the video that Trump's business techniques were a major asset in his business dealings.

Michelle Gunn, introduced in the video as an entrepreneur and real estate investor, says “we never felt pressured to do anything we didn't want to do.” Gunn raises the possibility that unhappy former Trump University students did not take sufficient action to apply what they learned in the real world. [The Washington Post, 6/1/16]

Students In Video Have Undisclosed Trump Ties

Former Trump U. Students In Trump Campaign Video Have Personal And Business Ties To Trump. RedState reported that two of the students in the video, Kent Moyer and Casey Hoban, did not currently work in real estate. RedState and USA Today also reported that Hoban’s Twitter account appears to show that the protein water Hoban sells is sold at various Trump properties. The other student in the video, Michelle Gunn, manages her teenage son, Houston, who wrote a personal finance book endorsed by Trump. Houston’s website and social media accounts feature photos of him and Trump together, and in a 2013 book talk, Houston also seemed to credit his attendance at a Trump University real estate seminar for Trump’s endorsement of his book. [Media Matters, 6/1/16]

Broadcast Evening And Morning News Shows’ Coverage Of Trump U. Video Doesn’t Mention Undisclosed Trump Ties

ABC World News Tonight: Trump Video Shows “Glowing Tributes” To Trump U. ABC News correspondent Tom Llamas said that the Trump campaign provided a video showing “glowing tributes with former students,” not mentioning any of the students’ Trump ties. From the June 1 edition of ABC World News Tonight:

TOM LLAMAS: And team Trump today providing us with this video, glowing tributes with former students.

[BEGIN VIDEO]

KENT MOYER: The courses that I took were outstanding.

CASEY HOBAN:  Amazing learning experience.

MICHELLE GUNN: We never felt pressured to do anything that we didn't want to do.

[END VIDEO]

LLAMAS: But Trump's aides refusing to answer any of our questions about Trump University and that employee playbook. [ABC, ABC World News Tonight, 6/1/16]

CBS Evening News: Video Shows Students “Who Say They Are Successful” Because Of Trump U. CBS News legal correspondent Jan Crawford reported that Trump’s campaign showed students “who say they are successful in business because of what they learned at Trump U.,” with no mention of the former students’ conflicts of interest. From the June 1 edition of CBS Evening News:

[BEGIN VIDEO]

KENT MOYER: The courses that I took were outstanding.

[END VIDEO]

JAN CRAWFORD: Today, the Trump campaign released this video of three students who say they are successful in business because of what they learned at Trump U. But that's not what former Trump University student Gary Smith told CBS News. [CBS, CBS Evening News, 6/1/16]

NBC Nightly News: Trump Campaign “Point[ed]” To Campaign Video Praising Trump U. NBC News foreign correspondent Katy Tur reported that Trump’s lawyers “den[ied] fraud and point[ed] NBC News to this campaign video” of those students praising the program. Tur did not note the former students’ conflicts of interest. From the June 1 edition of NBC Nightly News:

KATY TUR: Trump's lawyers deny fraud and point NBC News to this campaign video.

[BEGIN VIDEO]

KENT MOYER: I must tell you that the courses that I took were outstanding.

[END VIDEO]

TUR: The university seminars, at first free, were aggressively up-sold from $1,500 to $35,000. Students allegedly encouraged to max out their credit cards. [NBC, NBC Nightly News, 6/1/16]

MSNBC’s Morning Joe Aired Same NBC Nightly News Segment. MSNBC’s Morning Joe aired the same segment from Katy Tur reporting the video that did not disclose the conflicts of interest of those former students in the campaign video. [MSNBC, Morning Joe, 6/2/16]

ABC’s Good Morning America: Trump “Countering” With Students Saying “Course Worked For Them.” ABC News correspondent Tom Llamas reported that Trump’s campaign was “countering” allegations of fraud at Trump University with “statements from Trump U. alumni who said the course worked for them.” Llamas did not mention the former students’ conflicts of interest. From the June 2 edition of ABC’s Good Morning America:

TOM LLAMAS: [Trump University] employees told, quote, “Money is never a reason for not enrolling in Trump University. If they really believe in you and your product, they will find the money.” But the Trump team countering, sharing these statements from Trump U. alumni who said the course worked for them.

[BEGIN VIDEO]

KENT MOYER: The courses that I took were outstanding. They were excellent in terms of the quality of the content.

CASEY HOBAN: Amazing, amazing learning experience.

[END VIDEO]

LLAMAS: Now, Trump taking fire from another billionaire, Mark Cuban. [ABC, Good Morning America, 6/2/16]

CNN’s New Day: Trump Campaign “Released The Names” Of People Who Were “Completely Satisfied” By Trump U. CNN correspondent Jason Carroll reported that Trump’s campaign “released the names” of people who “said they were completely satisfied by attending” Trump University, without mentioning the former students’ conflicts of interest. From the June 2 edition of CNN’s New Day:

JASON CARROLL: In terms of the allegations about Trump University, it should be also noted that Trump's campaign has dismissed these allegations. They say that it’s not true and his legal team has released the names of a number of people who attended Trump University and said they were completely satisfied by attending there. Chris, Alisyn?

ALISYN CAMEROTA (CO-HOST): Jason, thank you. You’re right, there are stories on both sides of that issue. [CNN, New Day, 6/2/16]