"Trump University" : the ultimate PONZI SCHEME.
"Presidential candidate Donald Trump wants to "Make America Great Again!" Before he can do that, he has to answer to allegations that his now-defunct Trump University was a scam.
Trump is involved in two lawsuits brought by former students and one by the New York Attorney General.
Trump University, launched in 2005, promised to teach students the mogul's investing techniques to get rich on real estate. But the suit claims the teachers were not professors hand-picked by Trump as advertised, but rather independent contractors paid commissions for sales of the seminars and products.
The suit also alleges that the University would "upsell" students in its initial free seminar to buy a $1,495 "one year apprenticeship" -- which was effectively a three-day seminar. Then if they bought that, the teachers would upsell them again to buy "mentorships" at a cost of $10,000 and up. The most expensive, the Gold Elite program, cost $35,000.
"Even then, after investing nearly $36,500, students still do not receive Defendant Trump's 'secrets' they were promised, but are constantly subjected to upsell of additional Live Events, products and books," the Cohen suit said."
http://money.cnn.com/2015/07/24/news/donald-trump-university-lawsuit/
"Schneiderman’s lawsuit alleged that the school’s real estate program, which was unlicensed as an actual university, was complicit in “persistent fraudulent, illegal and deceptive conduct” towards its students, who were often saddled with debt from expensive seminars in lieu of brimming with the promised insider secrets from “Donald Trump’s handpicked instructor[s],” most of whom turned out to have emerged from real estate-derived bankruptcy, or have little background in real estate at all.
Schneiderman claimed that more than 5,000 people paid around $40 million to Trump U, a quarter of which was funneled directly into Trump’s pockets, going against claims that Trump U was founded “solely for philanthropic purposes“––Trump netted around $5 million in profit, according to the suit. Many of the allegations read like a pyramid scheme pamphlet, such as the multiple claims that Trump himself would make an appearance (“‘he is going to be in town’ or ‘often drops by’ and ‘might show up’ or had just left,” the suit reads), and student evaluations required for getting a certificate that “‘pleaded for a favorable rating so that ‘Mr. Trump would invite [them] back to do other retreats.” "
http://www.salon.com/2015/06/21/the_donald_trump_scandal_no_one_is_talking_about_partner/
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