Did Donald Trump Own a Fake College?

Did Donald Trump Own a Fake College?

The question of whether Donald Trump owned a “fake college” centers on Trump University, a for-profit real estate training program that operated from 2005 to 2010. While it was not a college in the traditional sense—no degrees, no accreditation, no campus—calling it “fake” depends on how one defines the term. What is clear is that Trump University was a business venture owned by Donald Trump through The Trump Organization, and it became embroiled in controversy, lawsuits, and allegations of fraud that ultimately led to its closure and a $25 million settlement. Here’s the story.

The Birth of Trump University

Trump University was founded in 2004 by Donald Trump, along with associates Michael Sexton and Jonathan Spitalny, as a New York limited liability company. Trump held a 93% ownership stake, making him the principal owner. Launched formally in 2005, it marketed itself as a way for everyday people to learn the secrets of real estate success from the billionaire himself. Promotional materials featured Trump promising to share his expertise, with claims that instructors were “hand-picked” by him to teach wealth-building strategies. Courses ranged from free introductory seminars to multi-day workshops costing up to $35,000 for a year-long “mentorship” program.

Despite its name, Trump University was never an accredited academic institution. It did not offer college credits, grant degrees, or operate under the oversight of any educational authority. In fact, the New York State Education Department objected to the use of “university” in its title, deeming it misleading. By 2010, the company rebranded as the Trump Entrepreneur Initiative, but the damage to its reputation was already underway.

Promises vs. Reality

The core accusation against Trump University was that it overpromised and underdelivered. Marketing materials suggested students would gain insider knowledge from Trump and his team, yet court documents and testimony later revealed a different picture. Trump himself admitted in depositions that he did not personally select the instructors, many of whom lacked significant real estate experience. Much of the curriculum was reportedly sourced from a third-party company that produced materials for motivational speakers, not tailored Trump strategies as advertised.

Students alleged they faced high-pressure sales tactics to upsell expensive programs, with some encouraged to max out credit cards or dip into savings. Ronald Schnackenberg, a former salesman, testified that he resigned after witnessing a couple in financial distress being pushed into a $35,000 program he deemed inappropriate for them. The closest most students got to Trump was a photo opportunity with a cardboard cutout of him—not the mentorship they expected.

Legal Fallout

By 2010, Trump University faced mounting complaints, prompting its closure amid investigations and lawsuits. The most significant legal challenges came in two class-action lawsuits in California (Makaeff v. Trump University, later Low v. Trump University, and Cohen v. Trump) and a separate case brought by New York Attorney General Eric Schneiderman in 2013. Plaintiffs accused the company of fraud, deceptive practices, and misrepresentation, claiming they paid thousands for little value.

Schneiderman’s suit alleged that Trump “personally pocketed $5 million” from the operation, calling it a “bait-and-switch scheme” that bilked students out of millions. The California cases echoed this, with students like Tarla Makaeff, who paid nearly $60,000, seeking refunds and damages. Trump denied wrongdoing, pointing to surveys claiming 98% student satisfaction and setting up a website to counter the narrative. However, the legal pressure persisted.

In November 2016, shortly after winning the presidential election, Trump agreed to a $25 million settlement to resolve all three cases—$21 million for students and $4 million for New York state penalties. The settlement, finalized in 2018 by U.S. District Judge Gonzalo Curiel, required no admission of guilt, but it ended the litigation that had dogged Trump’s campaign. Critics saw it as evidence of a scam; supporters argued it was a pragmatic move to avoid a trial while transitioning to the presidency.

Was It “Fake”?

So, did Trump own a fake college? Trump University was a real business entity, owned and branded by Trump, that sold educational services. However, it misrepresented itself as a “university” when it lacked accreditation or academic legitimacy, and its promises of Trump’s personal involvement were exaggerated. The lawsuits and settlement lend weight to the “fake” label, as does the testimony of former employees and students who felt misled. Legally, it was deemed fraudulent enough to warrant significant restitution, though Trump never faced criminal charges over it.

On the flip side, Trump University did provide seminars and materials—some students even claimed to benefit, as highlighted in Trump’s defense. Yet the consensus, backed by court findings, is that it fell far short of its lofty claims. The Better Business Bureau gave it a D-minus rating, and its closure amid scandal cemented its infamy.

Broader Implications

The Trump University saga became a flashpoint in debates about Trump’s character and business practices. During the 2016 campaign, opponents like Marco Rubio called it a “fake school,” while Trump dismissed the lawsuits as frivolous. The $25 million payout—unusual for a man who bragged about never settling—kept the story alive, raising questions about accountability and trust.

Ultimately, whether Trump University was “fake” hinges on perspective. It wasn’t a college in any traditional sense, and its operations led to credible fraud allegations, settled at a high cost. Owned by Trump, it capitalized on his name and image, only to collapse under scrutiny. For many, that’s close enough to “fake” to count.