Saturday, June 17, 2017

HOW DOES THIS HAPPEN? President Earns Increased Income From Defunct Trump University While Fmr Students Wait For $25M Settlement

The President filed his updated his personal financial disclosure statements and one item jumped out at me: somehow, Donald J. Trump made some money on his long-defunct Trump University last year while the former students waited for their refunds from the $25M court settlement.

In fact, the $38,542 in declared income almost matches the amount that former student Boyce Chait was owed* when he passed away this past January.

How the President was able to extract any money from the long-gone and under siege Trump U (later renamed the Trump Entrepreneur Initiative) is a mystery, although one that might have been explained in the class-action litigation that was settled shortly before it was to go to trial.

Equally concerning is why Trump would allow any money to be taken out when the case was pending (and, when he knew it would have to be disclosed). Through his entities, Trump owns all but 8% of the entity. (Jonathan Spitalny and Michael Sexton own 3.5% and 4.5%, respectively.)

In his previous financial disclosure statement, filed in 2015 after he announced his candidacy, indicated that he had received $11,819 in income from Trump University.

The settlement was approved in March, although payments are on hold because of an appeal by one of the former students.

*The USA Today report indicates that he had paid $34,995 in "tuition", and that the settlement would pay back some "90 cents on the dollar".

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