Trump Settles "Trump University" Fraud Claims For $25 Million

Tyler Durden's picture

One of the bigger headaches hanging over Donald Trump as he enters the transition period of his presidency, was the ongoing litigation that his now defunct Trump University defrauded students. Well, no more. Moments ago, the president-elect agreed to settle fraud lawsuits relating to his Trump University series of real estate seminars for $25 million.

Trump settles despite tweeting in late February that he would not settle "out of principle" as the University has a 98% approval rating.

The settlement ends a dispute that dogged Trump throughout his presidential election campaign and led to one of the more controversial moments of his run when he claimed the judge overseeing two of the cases was biased because he was of Mexican ancestry. Lawyers for the president-elect have been arguing against students who claim they were they were lured by false promises into paying up to $35,000 to learn Trump's real estate investing "secrets" from his "hand-picked" instructors.

There were three lawsuits relating to Trump University: two class actions suits in California and a case brought by New York Attorney General Eric Schneiderman. All of the cases would be covered in the possible settlement, the person said. Schneiderman has said over 5,000 students across the country were defrauded out of about $40 million.

This is what NY AG Schneiderman said:

In 2013, my office sued Donald Trump for swindling thousands of
innocent Americans out of millions of dollars through a scheme known at
Trump University... Today’s $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university,” N.Y. Atty General Eric T. Schneiderman says in statement.

As part of settlement, Trump will pay $1m in penalties to N.Y. for violating education laws.

The $25 million settlement agreement would include roughly $4 million to resolve Schneiderman's claims.

U.S. District Judge Gonzalo Curiel, who is presiding over the two California cases, had urged both sides to settle.

Trump said during his election campaign that Curiel, who was born in Indiana to Mexican immigrant parents, could not be impartial because of Trump's campaign pledge to build a wall on the U.S.-Mexico border to control illegal immigration. A trial in one of the cases was scheduled to begin on Nov. 28 in U.S. District Court in San Diego

Below is Schneiderman's full statement:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
johngaltfla's picture

Hilarious. The Democommies are running out of things to whine about. I wonder how they will feel when Trump's education policy says the first $500 million in a college's escrow account is tax exempt and everything above that is taxed as income.

Oh let the fun begin...

FreezeThese's picture

Probably the first time he's ever settled ... many more to come

 

Swastikas unite

TeamDepends's picture

Fascists calling patriots fascists, only in Obongodinga's America. We suggest you smell the roses, really enjoy yourselves over the next 60 days. Because it's game over, GAME OVER MAN!

RiverRoad's picture

Bye, bye, bye and don't let the door slam you in the ass Obongodinga.......    LOL

Oh and that goes for the Ape in high heels too.  LOL

Go ahead and try and fire me, I double dare ya.

beemasters's picture

$25M settlement for $40M. He gets to keep 37% of the money, but lost 100% credibility on the case no matter how well he tweets.

BarkingCat's picture

Not really.

We all know how these cases work. Sometimes it is more expedient to settle than to fight.

The lawyers that specialize in class action know that and it is what they count on.

An argument could easily be made that the only reason Trump settled is because he won the election and does not want unnecessary distractions. Had he not been running for office or lost the election, he might have made a much different decision.

FreezeThese's picture

But in reality we know it's to avoid testimony ... 1 down 74 to go

PrayingMantis's picture

 

@bee

... got news for you ... it comes out of taxpayers' funds 'cause it would be a tax deduction ... and no matter how you penalize a business, these corporations always come out ahead because of the tax laws that had been passed in Congress ... remember, it was a penalty against "Trump University", a defunct corporation ... and whatever penalties to be assesed against that business comes out of the taxpayers  ... and if you don't like it, write to your Congress rep to amend the tax laws ...

... no matter where you go, there you are!

Tallest Skil's picture

Enjoy your defeatism, shill.

finametrics's picture

is saying Obongodinga racisss? if not, i'd like to compliment you on your ingenuity.

Normalcy Bias's picture

Do you think that Bill Clinton will be dragged into lawsuit(s) over his involvement with the fraudulent Laureate Education?

http://dailycaller.com/2016/06/02/trump-u-is-nothing-compared-to-laureate-education/

pitz's picture

At the very least there should be a ban on using any tax-exempt university funds or endowment money on scholarships for foreign students.

RiverRoad's picture

The F-ing banks are in bed with the F-ing higher educational institutions:  The higher the tuitions, the bigger the loans.....   This sweetheart deal con game needs to get spiked.

Tijuana Donkey Show's picture

There needs to be a floor, and a ratio. Ohio State burns $500 mill for payroll. I think the target should be the endowments.

RiverRoad's picture

Re Trump's settlement:

Yes. And now onto the much, much, much larger civil fines the Clintons should cough up....to the Moon with those, please.  What's good for the gander should be good for the goose as well:  Trump has done the right thing and shown them the way.

Will the Clinton's follow the Leader ?

 

 

Kayman's picture

It makes sense to get this issue behind him.  The nation is a little more important.

The Gun Is Good's picture

Clintons wouldn't settle for 25 cents, let alone $25. Ah, the arrogance of the lawyer-politician elite class....

Idaho potato head's picture

Their leader is satan, and hellyes they'll follow.

bowie28's picture

Now we know what will be on MSM 24/7 for the next 3 days...

Bastiat's picture

, , , yeah .. . . and then what?  LOL!

bowie28's picture

Good question.  Probably one of these:

 

A cabinet appointment of someone not PC enough for their tastes so therefore a racist and confirmation that Trump is racist too since he is surrounding himself with white nationalist bigots.

or

Unnamed "sources" claiming that the transition is a complete shitshow, insiders are panicking and trump has no idea what he is doing.  

 

If only we had elected the most qualified candidate ever to run for office we could have spared ourselves all of this trouble. 

 

 

Raymond K Hessel's picture

I wish I could get someone to pay me for posting to ZH

bowie28's picture

Ryamond K, I get English is your second language but do I really need a /sarc tag?  Happy Friday!  

cbxer55's picture

Since English is his second language, he doesn't get what the word "FACETIOUS" means. Jocular humor. Playing with words. All in fun. ;-0

Holy hand grenade of Antioch's picture

@bowie28

 

Nah ~ My guess is that it'll be Cankles, jiggy dooed up as a combination of Betsy Ross, Scarlett O'Hara, Eleanor Roosevelt, Jackie O, Oprah Winfrey, Ellen DeGeneres, & the Wookie...

 

It'll take a lot of Hollywood make-up to accomplish that, but it's been done before...

 

Naturally, she'll be handing out TURKEYS & candy to inner city Haitian kids (who, weirdly, will end up as John Podesta's next meal)...

 

But it'll all look good on TV (as long as she doesn't have a medical seizure before the cameras stop filming).

RiverRoad's picture

That will never play in Peoria.

cbxer55's picture

Looks like five "folks" don't get that the post is facetious. HAHAHA!!!!!   ;-)

The Gun Is Good's picture

Friendly fire is a bitch....

Kayman's picture

bowie

Beautiful Sarc. And no tag too.

MASTER OF UNIVERSE's picture

Interesting how everyone ignores the fact that TrumpO the AssClown University & TrumpO the AssClown are now convicted of FRAUD in the public eye, but not on Supreme Court dockets because the fraudster ripoff settled the class action lawsuit before he was convicted and thrown into jail like Bernie Madoff. Clearly, the bias evidenced via the Deplorables will never be counted, but the hundreds of millions that do not occupy the Deplorables camp will most assuredly now refer to TrumpO as a criminal fraudster that buys his way out of federal prison unlike Bernie Madoff et al.

 

TrumpO the AssClown is a criminal child molester & a multi-million dollar kingpin fraudster Mafiaoso piece of sociopathic shit.

silverer's picture

Everybody here jump ship and go directly to liberal web sites. It will change your life. Really. Just ask any communist from the Soviet Union era. Master of Universe holds accredited credentials. He is ACCREDITED. I think by MillionDollarBogus. Anyway, switch over to communism, you'll really like it.

Kayman's picture

MasterBater of the Perverse.

Back from the dumpster in Ottawa.  Are y'all cried out.  It's not nice when someone takes a cheese grater to your rump and pours turpentine on it- is it?  Ya oughta cross the border into New York and console HilLiary- I hear Billy's busy consoling a few pre-teens.

FYI you stupid fuck. The case(s) are civil cases, run pro bona by ambulance chasers.

Now phone your mommy and ask her if you can move back to the couch in the basement.

MASTER OF UNIVERSE's picture

Mommy dearest has been in Hell & Purgatory for a decade now, Gayman. And Schniederman ain't an ambulance chaser litigator. He is a Joo lackey for the Rothschild Bank kikes, moron.

mkkby's picture

Masterbater is the goat licker from brusells, and other alias's as well.  Don't even engage with the sorry faggot.

robobbob's picture

troll

at least come up with something original or go away

Newspeaktogo's picture

How much do the "lawyers" get?

SokPOTUS's picture

$25 Million x .40 = $10 Million for the Lawyers.... = $15 Million remaining, less $4 Million for Eric Schneiderman = $11 Million divided by 6,000 students = $1,833.33 per student.

 

Peanuts.

Kayman's picture

Another Pro Bono- sue the guy with deep pockets.

MASTER OF UNIVERSE's picture

And it also means that each student paid $33,166.67 to get fucked by TrumpO the AssClown & TrumpO the AssClown University + BIG law lawyer slimewhores n' douchebags.

Trubador's picture

Actually:

http://money.cnn.com/2016/11/18/news/trump-university-settlement/index.html

"About 6,000 former students are covered by the settlement. The victims will receive at least half of their money back, said plaintiff attorney Jason Forge at a court hearing Friday. 

About $21 million will go to settle the class-action suits and $4 million will cover the victims of the suit brought by Schneiderman, Forge said. The attorneys waived all fees."

So, $1mil to NY State, $0 to attorneys, $24mil to approx 6000 victims.

1777's picture

Not Good...not good....

Have a good weekend everyone!

Tachyon5321's picture

$25 million is nothing. Bill Clinton makes $18 million a year for a Chicago College that teaches short order cooks how to turn on a stove.

Bastiat's picture

He saved 10X that by playing the media for time over the last year! 

RiverRoad's picture

And then Clinton has his hired law firm bill his Charitable Foundation $80,000.00 for his legal fees.

Thank you Wiki Leaks.

Hmmmn......I wonder how much Clinton will owe in civil fines for that one?

Throw the F-ing book at the Clintons, please.

buzzkillb's picture

Is stovegate related to pizzagate somehow?

Kone Wone's picture

Yes, for The Donald, it's 'trump change'