In addition to Trump University scam, Donald Trump sponsored or promoted two MLMs
Voters should be aware that Donald Trump sponsored or promoted not only Trump University, but also two MLMs, costing significant losses for tens of thousands of victims.
Trump University accused of being a classic “bait and switch scheme.” It has been reported in the news that Donald Trump sold Trump University, leaving thousands of students with unmet promises. Jan Tuttle reported (Feb. 26, 2016) in an article titled “Yes, Trump University Was a Massive Scam”, published in The Corner, an online version of The National Review:
Trump University is currently the defendant in three lawsuits — two class-action lawsuits filed in California, and one filed in New York by then-attorney general Eric Schneiderman, who told CNN’s New Day in 2013: “We started looking at Trump University and discovered that it was a classic bait-and-switch scheme. It was a scam, starting with the fact that it was not a university.”
In fact, $20,000 is only a mid-range loss. The lead plaintiff in one of the California suits, yoga instructor Tarla Makaeff, says she was “scammed” out of $60,000 over the course of her time in Trump U.
How could that have happened? The New York suit offers a suggestion:
The free seminars were the first step in a bait and switch to induce prospective students to enroll in increasingly expensive seminars starting with the three-day $1495 seminar and ultimately one of respondents’ advanced seminars such as the “Gold Elite” program costing $35,000. At the “free” 90-minute introductory seminars to which Trump University advertisements and solicitations invited prospective students, Trump University instructors engaged in a methodical, systematic series of misrepresentations designed to convince students to sign up for the Trump University three-day seminar at a cost of $1495.
The Atlantic, which got hold of a 41-page “Private & Confidential” playbook from Trump U, has attested to the same:
The playbook says almost nothing about the guest speaker presentations, the ostensible reason why people showed up to the seminar in the first place. Instead, the playbook focuses on the seminars’ real purpose: to browbeat attendees into purchasing expensive Trump University course packages.
To do that, instructors touted Trump’s own promises: that students would be “mentored” by “handpicked” real-estate experts, who would use Trump’s own real-estate strategies. . .
But according to the New York complaint, none of the instructors was “handpicked” by Trump, many of them came from fields having nothing to do with real estate, and Trump “‘never’ reviewed any of Trump University’s curricula or programming materials.” The materials were “in large part developed by a third-party company that creates and develops materials for an array of motivational speakers and seminar and timeshare rental companies.”
Furthermore, Trump’s promises that the three-day seminar ($1,495) would include “access to ‘private’ or ‘hard money’ lenders and financing,” that it would include a “year-long ‘apprenticeship support’ program,” and that it would “improve the credit scores” of students were empty.
(Read the full article at: www.nationalreview.com/corner/432010/trump-university-scam
Does any of this kind of misleading promise of wealth sound familiar? MLMs thrive on such misrepresentations.
(See chapter 7 of the eBook Multi-level Marketing Unmasked
, which debunks 111 typical misrepresentations used in MLM recruitment campaigns.)
The MLM called ACN was endorsed by Trump as a “great deal,” but left the vast majority of new recruits with losses.
While the press has pointed to the scam called Trump University, it has essentially ignored the fact that Trump endorsed an MLM called ACN, which scammed many times the number of victims out of their hard-earned money than the number of victims of Trump U. ACN recruited people to sell its line of video phones, for which there was little demand. As in other MLMs, costs of participation usually exceeded average income, with most participants leaving after suffering losses. Still, Donald Trump endorsed ACN, claiming it was a “great deal” for those who joined. Montana charged ACN with running a pyramid scheme, and officials from Los Angeles and North Carolina also investigated the company. Read the details here
“The Trump Network is dead”
was the headline for an article in Business for Home
(March 26, 2012), an online information source for MLM and direct selling. The article went on to say:
Donald Trump has pulled the plug on his brand, the Trump Network in short order after the recent sale of the company to Antoine Nohwa. The Trump brand has been removed entirely from the website and all products are repackaged with Bioceutica branding.
The compensation plan for Trump Network used a typical top-weighted commission structure that generously rewards those at the top of their respective pyramids at the expense of a revolving door of new recruits, approximately 99% of whom lost money. That means that with 21,000 distributors at the time of the sale, it is likely that in excess of 19,000 would have lost money after purchases and operating expenses were subtracted from commissions.
Donald Trump is very good at making promises that he will not or cannot fulfill. Is this the type of man we want for president?