Washblog

On Universities And Such, Or, If Obama's A Kettle, Is Donald Trump Black?

Just about 40 seconds after (Yes, He's Actually The) President Barack Obama brought forth his Certificate of Live Birth unto the world Donald Trump was accusing Obama of somehow sneaking his way into some University or another.

If Trump's to be believed, Obama was a terrible student at a College, and then he somehow snuck his way into a University; after that he basically grifted his way into becoming the President of the Harvard Law Review.

Trump would tell you that he's a hustler, that Obama is, and we've got to do whatever it takes to figure out what kind of semi-illegal shenanigans Obama's University experience was all about.

But here's the thing: Donald Trump has his own history of semi-illegal University shenanigans--and it appears that some of his semi-illegal shenanigans continue to this very day.

''I don't lie. When I speak, I believe it to be true. One week later, it may no longer be.''

--French raconteur Bernard Tapie

So here's the deal: just like there are people who want to Be Like Mike, there are those who wish to emulate The Donald; in 2005 it was announced that Trump University would be formed to help make that possible (the name was trademarked in 2004).

According to the announcement, the University:

"...will offer a rich mix of products and services, including online e-learning courses, multimedia home study programs, and a series of publications. These diverse offerings are geared to a broad range of consumers, from small business owners and entrepreneurs to investors and other professionals looking to advance their careers and to create wealth. Trump University's innovative, world-class business curriculum will be designed according to the Learning by Doing method. Content will be delivered through interactive learning experiences, including evaluating business plans, simulating real estate purchases, and developing marketing strategies."

You first meet the "Admissions Office" by either signing up online or by attending one of Trump U's free one-day seminars--and the Admissions Office is looking to get you to sign up for the $1495 three-day "conference".

If you do, you are, according to those who've been there, instructed to immediately increase the credit limits on your credit cards (immediately as in during the next coffee break), so that you might take advantage of the real estate investment opportunities you're going to be turned on to at the end of the weekend.

But it appears that investment opportunities aren't what end up being presented to the conference attendees. Instead, they're being presented with the opportunity to invest in more courses, this time for numbers ranging from $9,500 to $35,000.

If you jump in for the full package, you're told that it's "the next best thing to being Trump's Apprentice", and, thanks to your personal mentor (you'll have a year's access to this service), you'll be connected to Realtors, contractors, and other investors (a "Power Team"); all this will allow you to become a Real Estate Professional, doing profitable real estate deals, just as Trump does.

You'll make enough on your very first deal, it is claimed, to pay for the entire $35,000 course.

(There are other courses as well, including one known as the CEO Success Codes, intended to help you "Learn how to run your business The Trump Way".)

What is the Trump Way, precisely?
Here's how Stephen Goff, one of the Trump U trainers, lays it out, as described in a Houston Chronicle article:

You find a property worth $200,000, but the owner's willing to take $125,000. Why?" Pause. "Because he's in trouble."

You put in an offer, even if you don't have the money. Then you sign a contract, giving yourself 60 days to close. The next day, you put an ad in the paper, advertising the $200,000 property for $150,000. You get that money -- in cash -- before the 60 days is up, and voila: $25,000 profit without putting down a penny of your own money.

The same article quotes an expert who suggests that this strategy:

"...can be done, but it's also just as easy for me to audition for American Idol and become the next Justin Timberlake..."

Fun Fact: in his book "Trump University Real Estate 101: Building Wealth With Real Estate Investments", Dr. Gary Eldred, the Real Estate Mastery Program "Content Expert" for Trump U, quotes The Donald thusly:

"The worst things in history have happened when people stop thinking for themselves, especially when they allow themselves to be influenced by negative people. That's what gives rise to dictators. Avoid that error at all costs...

...People who take responsibility have no need to blame others or to be continually finding fault. The naysayers never manage to contribute much and never amount to much either. Don't join their club. They're the lowest common denominator.

I knew a guy that I used to call up just to see who and what he would be blaming that day. I don't think that guy ever thought he had personally made a single mistake in his entire life. From day one, nothing was ever his fault. His biggest blind spot was himself, and, sad to say, he became a total loser because he never thought of the remedy for his biggest failure: himself..." (emphasis is original)

There is a bit more to this story than we have revealed so far: a lot of the information I discovered about the University came from documents related to a lawsuit, filed in 2010 by former students Tarla Makaeff, Brandon Keller, Ed Oberkrom, and Patricia Murphy; that suit is today seeking class-action certification on behalf of all Trump U "students".  

The Plaintiffs allege that Trump U doesn't live up to its own hype, that Trump is not involved personally, that the expensive seminars offer no real value (a trip to Home Depot to view building supplies is reportedly part of one seminar), and that the mentors and the "Power Teams" either disappear completely after the three-day course ends, or they appear to offer deals that are self-serving and marred by conflicts of interest--and all of that means no "one year apprenticeship", followed by tons of income every month, which is what the courses seemed to promise in the first place.

(Page 24 of the complaint shows an image of the Trump U homepage, with a picture of The Oddly Haired One next to the words ""Are YOU My Next Apprentice? Prove it to me!")

There was also a signed letter sent to potential enrollees:

...You can do it, even if you only have five or ten hours a week to spare. With our simple instructions and practice exercises - and ongoing support from your own Trump Team of Experts - you'll have what you need to succeed!" (Emphasis in original). The letter closes with Donald J. Trump's name, signature, and at the Trump University address, at 40 Wall Street, 32nd Floor, New York, NY 10005.

It is also alleged that efforts made to obtain promised refunds have come to naught; the refunds are apparently always "just about to be issued", or the appropriate person is never available to answer the calls that are coming in seeking information about refunds.

Trump University countersued, claiming various forms of defamation; the action is being defended as a SLAPP suit.

(For the record, it's easy to find Web pages with complaints about Trump U; those complaints, for the most part, mirror those in the lawsuit.)

This whole real-estate hustle turned educational hustle has caused a reaction from the world beyond Trump; that's something he noted in his Trump U blog:

Recently Gary Trudeau spent a week lampooning Trump University in his comic strip Doonesbury. The basic premise of each strip in the series revolved around the disparity between Trump University and a traditional university. . . .
Trump University has also been mocked in one of Jay Leno's monologues, in the New York Post's Page Six cartoon, and probably in a lot of other places.

It's nice to see that my new venture is making a splash in popular culture.
As they say, no press is bad press. (emphasis is original)

(Doonesbury's August 8th, 2010 edition is one of those comics which mentions Trump's "school".)

The New York State Education Department informed Trump that an educational institution with no degree-granting programs and no differentiated graduate and undergraduate divisions can't be a University; as a result Trump University is now known as The Trump Entrepreneur Initiative.

(Despite the State's order, the Trump University name seems to have lived on, however: The Trump Store website, as of the time this was written, still sells "Trump University Audio Books" and "Trump University Books" and "Trump University DVD and Audio Packages".)

And remember Gary Eldred, Trump's "Content Expert"? It turns out he has a few credibility problems of his own: he co-hosted a radio show with another expert in running a successful real estate development business, Fredric "Rick" Dryer--and in July of 2008, we found out the secret of how Dryer was able to be so successful.

He was convicted on 44 counts of real estate fraud.

So that's our story for today: Donald Trump couldn't wait to trash Barack Obama's University experience, but Trump has some experience of his own regarding Universities--and from what we can see, when Trump opens a University, unsavory practices and questionable associations and lawsuits and regulatory actions follow in his path.

That's no way to run a University, and, more to the point, it looks like The Trump Way is no way to run a country--except for maybe Blowhardistan.

< On Happy-ing Their Gilmores, Or, Will Body Bags Be The New Gold Watch? | On Hole Cards, Or, "Drill, Baby, Drill"? Why? Is Canada Out Of Sand? >

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