Difference between revisions of "Trump University"

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[https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf]
 
[https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf]
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==Network of Fraudsters==
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<ul>
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<li><b>Trump gave promotional copy to Stephen Murphy, the promoter of a real estate investment book who was later indicted for securities fraud.</b> “Promoter Stephen Murphy, 44, runs something called American Capital Investments, of Marina Del Rey, Calif. He claims to have made a fortune buying foreclosed commercial real estate properties and, last year, decided to tell his secrets in a series of how-to books. His latest title: <i>Formerly One Up On Trump: How you too make millions in Uncle Sam's $400 billion real estate firesale!</i> The volume costs $12. Murphy says the price is a tax-deductible charitable contribution to American Captial Foundation for the Homeless, which publishes the book and is run by Murphy. ‘I really admire Steve Murphy,’ gushes New York developer Donald Trump on the book's duty jacket. ‘Steve commands some very wise, intelligent negotiating skills and unique purchasing strategies.’ Trump probably now wishes he'd declined the endorsement request. On Aug. 31 the Securities & Exchange Commission charged Murphy with securities fraud and froze his assets.” (<i>Forbes</i>, October 18, 1993)
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<li><b>According to federal law enforcement agents, Murphy would target purchasers of his book for real estate scams.</b> "According to the SEC, one of Murphy's secrets was to call people who bought his books and offer them an interest in one of the distressed properties that his company was buying. Encouraged by the promise of returns between 25% and 135% on their investments, some 180 suckers ponied up more than $14.5 million over the course of a year. Only $5 million of the suckers' money was used to buy property. Some of the money went to promoting Murphy's three books; some more went to covering sales commissions; around $700,000 went to Murphy himself. […] What does Donald Trump now think of the fellow he effusively promoted? He didn't return calls.” (<i>Forbes</i>, October 18, 1993)
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Revision as of 15:44, 14 October 2019

Federal Support

During the course of our investigation, we found unreported evidence that Trump University received promotional support from the federal Small Business Administration. Trump apparently paid some kind of fee to have Trump University promoted on the Small Business Administration’s website through its Co-Sponsorship Authority from Section 4(H) of the Small Business Act.

Examples:

https://www.sba.gov/sites/default/files/oig_spring2007sar5-31-07no-sig.pdf

https://www.sba.gov/sites/default/files/Small%20Business%20Act_0.pdf

Network of Fraudsters

  • Trump gave promotional copy to Stephen Murphy, the promoter of a real estate investment book who was later indicted for securities fraud. “Promoter Stephen Murphy, 44, runs something called American Capital Investments, of Marina Del Rey, Calif. He claims to have made a fortune buying foreclosed commercial real estate properties and, last year, decided to tell his secrets in a series of how-to books. His latest title: Formerly One Up On Trump: How you too make millions in Uncle Sam's $400 billion real estate firesale! The volume costs $12. Murphy says the price is a tax-deductible charitable contribution to American Captial Foundation for the Homeless, which publishes the book and is run by Murphy. ‘I really admire Steve Murphy,’ gushes New York developer Donald Trump on the book's duty jacket. ‘Steve commands some very wise, intelligent negotiating skills and unique purchasing strategies.’ Trump probably now wishes he'd declined the endorsement request. On Aug. 31 the Securities & Exchange Commission charged Murphy with securities fraud and froze his assets.” (Forbes, October 18, 1993)
    • According to federal law enforcement agents, Murphy would target purchasers of his book for real estate scams. "According to the SEC, one of Murphy's secrets was to call people who bought his books and offer them an interest in one of the distressed properties that his company was buying. Encouraged by the promise of returns between 25% and 135% on their investments, some 180 suckers ponied up more than $14.5 million over the course of a year. Only $5 million of the suckers' money was used to buy property. Some of the money went to promoting Murphy's three books; some more went to covering sales commissions; around $700,000 went to Murphy himself. […] What does Donald Trump now think of the fellow he effusively promoted? He didn't return calls.” (Forbes, October 18, 1993)