Donald Trump Facing RICO Class Action Lawsuit for Potential Pyramid Scheme

“I’d been to two earlier ACN meetings with her, both of which used the Trump video to close the sale. At the first, I was impressed. I had a vague sense that changes in the telecommunications industry had opened new possibilities, so here might be the rare case where “too good to be true” actually is true. But when I later looked into the company, I found scores of lawsuits and regulatory actions against them for running what amounts to a pyramid scheme.

At the second meeting I attended, after they’d shown the Trump video, as the other guests filled out their applications and opened their checkbooks to buy in, I read the fine print on the promotional materials. It referred to a document called the “Contract Agreement,” and I asked to see a copy. The person running the meeting reluctantly dug out of his briefcase a photocopied sheet of paper covered on both sides with even smaller print and handed to me.”

Joe Miller, Salon. Tuesday, 15 September 2015.

Erin Fuchs of Business Insider reported on October 24, 2014 of a federal court ruling of a civil racketeering lawsuit against Donald Trump may progress to that of a mass class action suit. Federal Judge Gonzalo Curiel ruled in favor of California businessman Art Cohen, who has already taken concrete steps towards advancing his case against Mr. Trump over racketeering charges for Trump University to a higher level.

According to Ms. Fuchs, this could prove “potentially crushing” for Mr. Trump, describing it as “a major incremental victory for a former student (presumably Mr. Cohen) accusing him of running a bogus investment university.”

Judge Curiel’s ruling, according to Fuchs, “is a big deal because it is generally not worth a lawyer’s time to pursue a case like this on behalf of one person.” Mr. Cohen will be representing many thousands of people allegedly swindled by Trump University, according to court documents filed by his attorneys.

Those court documents are provided by Ms. Fuchs on Scribd.

Trump’s lawyers issued in a statement to Business Insider claiming,

“We are taking action to immediately appeal the Court’s decision to certify a class in this case.  However, we are confident that Mr. Trump will ultimately prevail on the merits once all the evidence is considered.”

According to Ms. Fuchs, Trump University stopped operating in 2011, but has since faced continuous litigation. For instance, New York Attorney General Eric Schneiderman sued Trump University last year over the alleged failure to deliver on promises to teach real estate investment techniques, thus defrauding unsuspecting students of an estimated $40 million.

Cohen also filed his suit last year after allegedly spending $34,996 on Trump University’s “Gold Elite” program. This lawsuit claims Trump misled students into believing they would learn investment secrets from both him and his faculty of “handpicked professors.” Instead, Cohen claimed Trump had no real role in choosing instructors nor did he provide students any access to his real estate investing secrets.

“The misleading nature of the enterprise is embodied by its very name. That is because, though Defendant promised ‘Trump University,’ he delivered neither Donald Trump nor a university.”

As the complaint suggests, so too will he be held accountable if found liable, which may trump any realistic chances for winning the GOP nomination, let alone the presidency.

Vital Details to the Case Against Mr. Trump

The most pertinent information about the case’s continuity is available at Trump University For verification, a full screenshot of the home page is available immediately below.

Makaeff et al v. Trump University

The Plaintiff’s complaint seeks to redress the matter of what could potentially wind up as a criminal case against Mr. Trump over violations of RICO laws. 

On pg. 4 of the above document, the aim for the civil suit was to achieve the following:

Trump Lawsuit pg. 4 8 and 9

The jurisdiction on pg. 5 is revealed to be based in Southern California in favor of the Defendant, who “intentionally availed himself of the laws of California by transacting a substantial amount of business throughout California and San Diego County.”

Trump Lawsuit pg 5 11 and 12

This case, however, is only one of “numerous complaints” about Trump University. On pg. 4, details emerge of at least “11 Attorneys General and the U.S. Department of Justice” receiving notifications of Trump University’s multiple violations of the RICO Statute, including:

Trump Lawsuit pg. 4 7 and 8

The allegations placed before Mr. Trump include a reference to it as “a Scheme”.

Common Factual Allegations Against Trump A. Scheme

Next are details revealing the methods via social media Trump University employed to rapidly expand his “Scheme”.

No. 20 False Advertisement of Trump University

A more itemized listing of the methods charged of Trump University’s alleged commission of racketeering include the following:

No. 21 of Trump Lawsuit Methodology

No. 21 b of Trump Lawsuit on Methodology

No. 21 h of Trump Lawsuit Methodology

In reading the details, the form of racketeering appears to be a possible Pyramid Scheme.

No. 21 i - Possible Pyramid Scheme

Below explains why the RICO case filed against Trump University may well be labeled as a “Pyramid Scheme.”

The Fulfillment

Pursuant of this case, the official website for the two class action suits can be accessed here. With multiple court documents involved aside the main one provided earlier, those in full detail are accessible here.



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