The scandal surrounding “Trump University” is already an albatross for Donald Trump’s presidential campaign. The entire enterprise has been accused of being a con job, ripping off “students” who trusted the developer’s name.
But as it turns out, there’s a new, related controversy surrounding the “Trump Institute,” which is something else. The New York Times reports today that the Republican candidate “lent his name, and his credibility” to this seminar business, which offered Trump’s “wealth-creating secrets and strategies” for up to $2,000.
The truth was something else altogether.
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.
All things considered, when Sen. Marco Rubio (R-Fla.) referred to Trump as a “con man,” the senator may have been on to to something.
Consider the revelations from recent weeks:
* Those who ran “Trump University” have faced credible allegations of stuffing their own pockets by preying on the vulnerable, selling unsuspecting students snake oil at indefensible prices and through misleading claims.
* Trump has boasted at great length about the millions of dollars he’s given away through charitable donations — though many of these donations don’t appear to exist and many of the promises he made publicly went unfulfilled.
* A considerable chunk of Trump’s campaign fundraising went to Trump corporate products and services, giving rise to a new word for the political lexicon: “scampaign.”
* And now the “Trump Institute” is facing allegations of being yet another fraudulent operation, complete with bogus claims, shady characters, and “the theft of intellectual property at the venture’s heart.”
The Times‘ report added:
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.Mr. Trump’s infomercial performance suggested he was closely overseeing the Trump Institute. “People are loving it,” he said in the program, titled “The Donald Trump Way to Wealth” and staged like a talk show in front of a wildly enthusiastic audience. “People are really doing well with it, and they’re loving it.” His name, picture and aphorisms like “I am the American Dream, supersized version” were all over the course materials.Yet while he owned 93 percent of Trump University, the Trump Institute was owned and operated by Irene and Mike Milin, a couple who had been marketing get-rich-quick courses since the 1980s.
I realize, of course, that there are many voters who trust Donald J. Trump’s word. I’m less clear on why.
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Steve Benen is a producer for "The Rachel Maddow Show," the editor of MaddowBlog and an MS NOW political contributor. He's also the bestselling author of "Ministry of Truth: Democracy, Reality, and the Republicans' War on the Recent Past."