Trump Launches "Trump University" Real Estate Seminars Without Academic License or Accreditation

Donald Trump formally launched “Trump University” on May 23, 2005, a real estate training program that operated without proper academic licensing or accreditation. The enterprise, incorporated in 2004 with Trump owning 93% of the company, conducted three- and five-day seminars marketed as providing Trump’s personal real estate investment secrets. Students paid $1,495 for initial three-day seminars, with aggressive upselling to “elite” mentorship programs costing up to $34,995. Despite its name, Trump University was not an accredited university or college, did not confer college credit or grant degrees, and did not grade its students. Trump appeared in promotional videos promising students they would learn his personal techniques for real estate success.

Background

The New York State Department of Education sent Trump, Sexton, and Trump University a letter in 2005 warning they were violating state law by using the word “university” when Trump University was not actually chartered as one and did not have the required license to offer live instruction or training. The organization ignored these warnings and continued operating illegally under the “university” name for six years. The real estate training program operated from 2005 to 2010, using high-pressure sales tactics detailed in internal “playbooks” that would later be unsealed in court proceedings. The enterprise promised personal involvement from Trump in selecting instructors and developing curriculum, promises that were later proven false.

Significance

Trump University represented a systematic fraud scheme that would eventually defraud over 5,000 consumers of more than $40 million between 2005 and 2011. The enterprise operated in direct violation of New York education law from its inception, demonstrating a willful disregard for regulatory compliance. The launch of this fraudulent educational program established Trump’s pattern of using his celebrity brand to exploit vulnerable consumers seeking financial success, particularly targeting the elderly and financially desperate. The case would eventually result in a $25 million settlement just days after Trump won the 2016 presidential election, representing one of the most significant consumer fraud cases involving a U.S. president. The systematic nature of the fraud, documented in internal training materials that encouraged exploiting students’ financial vulnerabilities, revealed Trump’s business practices prioritized profit extraction over legitimate educational value.