Plagiarized Lessons and Deceptive Tactics: A Look Inside the Trump Institute
By JONATHAN MARTIN JUNE 29, 2016
nytimes.com
Donald J. Trump at a campaign event in Dallas this month. In 2005, he lent his name to a venture, the Trump Institute, that promised falsely that he had handpicked its teachers.
Credit Eric Thayer for The New York Times
In 2005, as he was making a transition from developing real estate to capitalizing on his fame through ventures like a reality show and product-licensing deals, Donald J. Trump hit upon a two-pronged strategy for entering the field of for-profit education.
He poured his own money into Trump University, which began as a distance-learning business advising customers on how to make money in real estate, but left a long trail of customers alleging they were defrauded. Their lawsuits have cast a shadow over Mr. Trump’s presidential campaign.
But Mr. Trump also lent his name, and his credibility, to a seminar business he did not own, which was branded the Trump Institute. Its operators rented out hotel ballrooms across the country and invited people to pay up to $2,000 to come hear Mr. Trump’s “wealth-creating secrets and strategies.”
And its customers had ample reason to ask whether they, too, had been deceived.
As with Trump University, the Trump Institute promised falsely that its teachers would be handpicked by Mr. Trump. Mr. Trump did little, interviews show, besides appear in an infomercial — one that promised customers access to his vast accumulated knowledge. “I put all of my concepts that have worked so well for me, new and old, into our seminar,” he said in the 2005 video, adding, “I’m teaching what I’ve learned.”
Reality fell far short. In fact, the institute was run by a couple who had run afoul of regulators in dozens of states and been dogged by accusations of deceptive business practices and fraud for decades. Similar complaints soon emerged about the Trump Institute.
Yet there was an even more fundamental deceit to the business, unreported until now: Extensive portions of the materials that students received after forking over their seminar fees, supposedly containing Mr. Trump’s special wisdom, had been plagiarized from an obscure real estate manual published a decade earlier.
Together, the exaggerated claims about his own role, the checkered pasts of the people with whom he went into business and the theft of intellectual property at the venture’s heart all illustrate the fiction underpinning so many of Mr. Trump’s licensing businesses: Putting his name on products and services — and collecting fees — was often where his actual involvement began and ended.
“That Trump Institute, what criminals they are,” said Carol Minto of West Haven, Conn., a retired court reporter who attended one seminar in 2009 and agreed to spend $1,997.94 to attend another before having second thoughts. She wound up requiring the help of two states’ attorneys general in getting a refund. “They wanted to steal my money,” she said.
From the book published first in 1995 by Success magazine
Real Estate Mastery System: Mortgage and Finance, Success magazine
From the book published in 2006 by the Trump Institute
Billionaire's Road Map to Success, the Trump Institute
The institute was another example of the Trump brand’s being accused of luring vulnerable customers with false promises of profit and success. Others, besides Trump University, include multilevel marketing ventures that sold vitamins and telecommunications services, and a vanity publisher that faced hundreds of consumer complaints.
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