00 U1 - 4h- UJ i?s Case Document 1 AMBER L. ECK (SBN: 177882) HELEN I. ZELDES ALREEN HAEGGQUIST (SBN: 221858) ZELDES I-IAEGGQUIST, LLP 625 Broadway, Suite 906 San Diego, CA 92101 Telephone: (619) 342-8000 Fax: (619) 342-7272 ambere@zhlaw.com helenz@zhlaw.com ROBBINS GELLER RUDMAN DOWD LLP RACHEL L. JENSEN (211456) 655 West Broadway, Suite 1900 San Diego, CA 92101 Telephone: (619) 231 -1 058 Fax: (619) 231-7423 Attomevs for Plaintiff and the Proposed Class Filed 04/30/10 Page ?if?m, 1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA TARLA MAKAEFF, on Behalf of Herself and All Others Similarly Situated, Plaintiff, VS. TRUMP UNIVERSITY, LLC, a New York Limited Liability Company, and DOES 1 through 50, inclusive, Defendants. U940 IEG Case No. CLASS ACTION COMPLAINT JURY TRIAL DEMANDED I 3:14! we I I: hr can? VIA FAX 5? CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 2 of 35 1 Plaintiff Tarla Makaeff (?Plaintiff?), by and through her attorneys, brings this action on 2 behalf of herself and all others similarly situated against anmp University, LLC and DOES 3 through 50, inclusive (collectively ?Defendant,? "Trump University" or "anmp"). Plaintiff hereby 4 alleges, on information and belief, except as to those allegations which pertain to the named 5 Plaintiff, which allegations are based on personal knowledge, as follows: 6 NATURE OF THE ACTION 7 1. Trump University markets itself as a University driven by the mission to ?train, 8 educate and mentor entrepreneurs on achieving ?nancial independence through real estate 9 investing.? It is anything but. In fact, rather than serving its students as a university or college, 10 Trump University is more like an infomercial, selling non-accredited products, such as sales 11 workshops, luring customers in with the name and reputation of its founder and Chairman, 12 billionaire land mogul Donald J. Trump. Trump and his so-called University promise 13 ?mentorships,? urging consumers that it?s the ?next best thing? to being Donald Trump?s next 14 "Apprentice." But as class members quickly ?nd out, all Trump University provides is empty 15 promises. The primary lesson Trump University teaches its students is how to spend more money 16 buying more Trump seminars. 17 2. Plaintiff and class members attended Tnimp University?s real estate investing 18 classes, were promised a ?complete real estate education,? a ?one year apprenticeship,? a one-0n- 19 one mentorship, practical and fail-safe real estate techniques, a ?power team? consisting of real 20 estate agents, managers, property managers and contractors, and were 21 assured that although the seminars were costly, they would make the money back in their ?rst real 22 estate deal, and could make up to tens of thousands of dollars per month or more. Plaintiff and 23 class members did not receive what they bargained for. 24 3. Instead of a complete real estate education, students merely received an 25 ?infomercial? pushing additional seminars or workshops they were told they would need to take to 26 succeed. The ?one year apprenticeship?they were promised was actually just a 3-day seminar; the 27 one-on? one year-long mentorship consisted of no practical insights and no mentorship, but rather 28 1 CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 3 of 35 1 excursions to Home Depot and ?mentors? who either recommend real estate deals that they stood to 2 bene?t from ?nancially, raising a con?ict of interest, or quickly disappeared and failed to return 3 calls. 4 4. Trump University representatives also told students during the 3-day seminar to 5 raise their credit card limits 2-4 times during the break for ?real estate transactions,? and had 6 students prepare detailed ?nancial statements, presumably for real estate purchases, when in fact, 7 Trump?s real reason for this was to assess how much money each student had to spend on the next 8 Trump seminar, and to persuade the students to use their increased credit limit to purchase the 9 Trump Gold Program for $34,995. 10 5. Plaintiff thus brings this class action on behalf of herself and all other similarly ll situated consumers who purchased seminars, workshops, mentorships, retreats and/or programs 12 (collectively "Seminars") from Trump University throughout the United States, asserting claims 13 under California?s Unfair Competition Law, Cal. Bus. Prof. Code 17200 et seq. or 14 the Consumer Legal Remedies Act, Cal. Civ. Code 1750 et seq. the False 15 Advertising Law, Cal. Bus Prof. Code 175002: seq. or ?17 500?); Breach of Contract; 16 Breach of the Covenant of Good Faith and Fair Dealing; Money Had and Received; Negligent l7 Misrepresentation; Fraud; and False Promisesn Plaintiff seeks damages and equitable relief on 18 behalf of the Class, which relief includes, but is not limited to, the following: refunding Plaintiff 19 and class members the full amount paid for Trump University Seminars; an order enjoining Trump 20 from falsely marketing and advertising its Seminars; costs and expenses, including attorneys? fees 21 and expert fees; and any additional relief that this Court determines to be necessary to provide 22 complete relief .to Plaintiff and the Class. 23 JURISDICTION AND VENUE .24 6. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 1332 and 1367, 25 because the Plaintiff resides in California and is therefore diverse from the Defendant Trump 26 University who resides in New York. The Court has supplemental jurisdiction over Plaintiffs state 27 law claims pursuant to 28 U.S.C. ?l367(aCLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 4 of 35 7. This Court also has original jurisdiction over this action under the Class Action FairnessAct of 2005, 28 U.S.C. ?l 332td)(2) as to the named Plaintiff and every member of the Class, because the proposed Class contains more than 100 members, the aggregate amount in controversy exceeds $5 million, and members of the Class reside across the United States and are therefore diverse from Trump University. 8. This Court has personal jurisdiction over Trump University because itis authorized to conduct business in California, it has signi?cant minimum contacts with this state, and/or Trump University otherwise intentionally availed itself of the laws and markets of California through the promotion, marketing, and advertising of its Seminars in this state. 9. Venue is proper in this District pursuant to 28 U.S.C. ?139l because a substantial part of the events or omissions giving rise to Plaintiff?s claims occurred in this District. Venue is also proper under 28 U.S.C. ?139l because Tnirnp University is subject to personal jurisdictionin District as it transects a substantial amount of its business in this District. Indeed, University has offered and continues to offer numerous Seminars in San Diego, California. Plaintiff is ?ling concurren?y herewith an af?davit stating facts showing that this action has been commenced in a proper county pursuant to Cal. Civ. Code 1780(0). PARTIES 10. Plaintiff Tarla Makaeff resides in Corona Del Mar, California. During the class period, in early August, 2008, Plaintiff was introduced to Trump University through a friend who attended the ?ee introductory seminar and invited her to attend the three-day Trurnp University "Fast Track to Foreclosure Training" workshop for During the three-day workshop, Plaintiff was told to raise her credit card limits so she could enter into ?real estate transactions.? However, at the end of the session, Trump University told Plaintiff and the other Seminar attendees to use that credit to purchase an additional Tnirnp ?Gold? seminar for $34,995. Based on Trump University's numerous misrepresentations, on or about August 10, 2008, Plaintiff enrolled in Trump University's "Trump Gold Elite" Program (?Trump Gold Program?) for $34,995, plus the variable APR finances charges, interest fees, and late fees she has to pay her credit card 3 CLASS ACTION COMPLAINT . . . . Case Document 1 Filed 04/30/10 Page 5 of 35 company. Plaintiff ultimately spent nearly $60,000 on Trump University Seminars, and/or seminars related to or endorsed by University, over the course of one year. Defendant University, LLC is a New York limited liability company registered in New York. Its executive of?ces and company headquarters are located in New York, New York. Donald J. Trump is the chairman of Trump University, as well as the chairman and president of The Trump Organization Trump University conducts a substantial amount of business throughout the State, including marketing, advertising, and hosting Seminars in San Diego County and all over California. I I 12. The true names and capacities of defendants sued herein as Does 1 through 50, inclusive, are presently unknown to Plaintiff who therefore sues these defendants by ?ctitious names. Plaintiff will amend this Complaint to show their true names and capacities when they have been ascertained. Each of the Doe Defendants is responsible in some manner for the conduct alleged herein. UNLAWFUL CONDUCT 13. anmp University is an "education" company owned and founded by real estate tycoon Donald J. Trump, Sr., as part of the Trump Organization. It offers courses in real estate, asset management, entrepreneurship and wealth creation. It is not an accredited University. 14. Trump University lures consumers in with a free introductory Seminar, which turns out to be nothing more than an infomercial used to ??Jp-sell? and persuade students to purchase its $1,495 ?one year apprenticeship? course. If students purchase the $1,495 course, Trump University continues using misleading, fraudulent and predatory practices to convince students to purchase anmp University?s $35,000 ?Gold? course. Even then, after investing nearly $36,500, students still do not receive the information or training they were promised. The three ?tiers? to the Trump University program are as follows Case Document 1 Filed 04/30/10 Page 6 of 35 First tier: the Free Introductor Course 15. Trump University advertises extensively in local media and online, such as online local newspapers, on Facebook, and radio for ?Free? introductory courses, which take place in cities across the country. In marketing the Trump University program, Donald Trump claims: "I?m going to give you 2 hours of access to one of my amazing instructors AND priceless information all for An advertisement in the LA. Times, for example, quoted Donald Trump as saying that "investors nationwide are making millions in foreclosures . . . and so can you! It also promised two hours of "pri celess information . . . all for free. "2 Other advertisements urged consumers to ?Learn from the Master? - Donald Trump,? that ?It? the next best thing to being his Apprentice,? and told consumers that they would learn ?insider success secrets from Donald Trump.? Learn from ,2 the Master Join Trump University It?s the neat hes: to Itetng Apprentrte . ENTR (thnl'. Jam 10 - 13 lulth Iii-b Insider SHBCESS SBMGIS Attend a Free Cm Learn mam Bra-mob: 601 Financial Advice mutant Allenrt Heat Estalt lnresling Spare IS Limited, gift? It? 753211?:- . . . -.., . - -. .- I: a 4 INVITATION FROM TRUMP UNIVERSITY. 16. At the free seminar, prospective customers are greeted by a large screen projector and two tall banners with Donald Trump?s photo on them. The speaker, who is following a Trump 1 See LA. Times, ?Trump Spins in Foreclosure Game, by David Lazarus, Dec. 12, 2009, 2 See LA. Times, ?Trump's a grump about column on his 'priceless' tips by David Lazarus, Dec. 16, 2009, When LA. times reporter David Lazarus attended the Pasadena Hilton Trump seminar, he: ?learned by attending the geminar, tge event was a two-hour sales pitch for a three-day workshop that would cost people 1,495.? I . 3 Screen shot from (last updated 2/3/2010). 4 Screen shot from (last updated 2/3/2010). 5 Screen shot from (last updated 2/3/2010). 5 CLASS ACTION COMPLAWT Case Document 1 Filed 04/30/10 Page 7 of 35 University script, begins addressing the audience with scare tactics. A large portion of the audience is typically comprised of senior citizens, and the speaker plays on their fears, asking ?How many of you lost a lot of your 401k investment in the market? How many of you are retired or want to retire? How many of you want to leave a legacy or property to your kids?? 17. The speaker induces the audience to trust in the Trump name and ?family? by walking through the history of the Trump Organization and Donald Trump? 5 ?humble beginnings.? He tells the audience that 76% of all millionaires are created from real estate that ?anyone can do it,? and that ?it?s not easy, but it?s simple if you know what you?re doing, and we?ll teach you what you need to know.? He states that the mission of Trump University is to ?train, educate and mentor entrepreneurs on achieving ?nancial independence through real estate investing.? The Trump Organization: 75 Years of Success All-nuccuy. l?nm?l'rump 13? begins on I um I oven com 1 0 n. 1974 I988 Purpose: 968 1933 To produce the most successful group of investors on the Planet. Trump University: A New Way to Learn Dondd TI ump became: pruldenl nl Tbu?hurup Org-Multan. The buy-Tn] Nah-l In . aldT um nun nlho Isnu?l. a To Train, Educate and Mentor Entrepreneurs on achieving ?nancial independence thrOugh Real Estate Investing. 2004 2000 2005 1 Trump ?running: is TillmP'n?V?" '3 created to lend: ndulh in now In Invest Ill Heal . [hula Don-Id Tr u?np pom: "In Nation-I. Gal! Comm ovnnl- 1 tum 1611' had Tr amp lemme lho Blooklyn hon-1m; 18. The Speaker emphasizes that on the television show, ?The Apprentice,? Mr. Trump could only work with one person a year, so he created this University not to make money for himself, but to teach others. With this apprenticeship program, the speaker claims, ?Mr. Trump takes you through an entire apprenticeship for one year.? The speaker emphasizes that rump University is owned, lock, stock and barrel by Mr. Trump it?s his ?baby, his company, designed to help him accomplish his goal of leaving a legacy.? The presentation plays on consumers? reliance on the Trump name, Trump? 5 Apprentice television show, the Trump reputation, Trump?s wealth and Trump real estate expertise: 6 These and the following slides are from the free online introductory Trump seminar. 6 CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 8 of 35 Dunnld 'l'rump: Donald J. 'l'rump: .HC, . A11A111er1em1[eun i - An lenn The Personality TRUMP Brand - . .. 9; . 'i-nimni 111: email The Educator The Real Estate Tycoon ?i RUM . unlvunnvv . en. a i 4? 19. The presentation claims that the real estate transactions taught are safe and conservative. The speaker encourages members of the audience, including the elderly, to cash out their 401Ks so they can supposedly make a higher return. He tells them, ?this is by the numbers, and the numbers don?t lie. This isn?t speculative. It?s a good idea.? These strategies will make you money they are time tested strategies that have been in the Trump family for over 75 years. You can allegedly pay off your credit cards, pay off your cars, ?Jlly fund your retirement and send your kids to college. A Comprehensive Real listul?e l8 1 Columns-l I Prob-Ia i land 1 Hull huh: Investing Out?ow"! The Apprenticeship Program - A Proven Investing System: A slep-by-step process for prof liable Wealth - Specialized Knowledge: rest: 011 Based on the investing experience of Donald J. Trump Quick Start Creative . . Financing 1 k, . The Apprenticeship Program One Year Program Tuition is $1,995 - Ongoing Support: One lull year of expert, interacwe Support 1 111m rag" 20. The whole presentation is essentially an ?infomercial,? designed to get members of the audience to sign up for the so-called one year Apprenticeship Program, which is purportedly going to be Comprehensive Real Estate Education.? However, what the ?one year apprenticeship? program actually turns out to be is merely a three-day workshop plus a phone number to call a ?client advisor? for $1,495. 21. Trump University promises ?12 months of training,? because ?there?s no shortcut to success.? They also promise mentors who will be available for a full year. ?Other people don ?t have anyone to call, but you ?ve got Trump. You ?11 call 40 Wall Street [Trump University], and they?ll walk you through it.? They claim that a?er this seminar, ?you?re going to be walking on 7 CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 9 of 35 fag Cloud 9 because you get it', you know so much.? The speaker says you can attend the?rst day and a then decide if the course is right for you Your ?Satisfaction is 100% Guaranteed.? The speaker even says he will give you his personal email; he wants that connection with you, so you canbecome part of the Trump family. Second Tier: the 1-year ?apprenticeship? (actually a three-day infomercial) 22. One Year Apprenticeship Defendant describes the second tier as a one year ?apprenticeship? that allegedly provides a, ?comprehensive real estate education.? In actuality, it is, merely a three-day infomercial to sell more Trump products. Trump University tells students at the free seminar that this one-year apprenticeship is ?all you need.? However, rather than teach students actual real estate techniques and how to ?ll out the necessary contracts and forms (as promised in the free seminar), the entire ?apprenticeship? is a three-day long ?infomercial? to ?up-sell? students to buy the Trump Gold Program for $34,995 to get a ??ill education.? 9 23. Inducing students to increase credit card limits - During the seminar, the speakers demand that students raise their credit card limits by ?4 times? their current limits on class breaks so that they can be ready to immediately purchase property. The speakers also ask each student to ?ll out a detailed ?nancial statement, presumably for real estate investment purposes, and personally sit down with each student to review and assess their ?nancial situation under the guise of helping them - -- fact, they assess how much money each student has to spend on the next Trump seminar. At the end of the workshop, Trump?s real reason for urging attendees to extend their credit limits becomes clear: the Trump representatives ask the students to use their increased credit to purchase the next: level of buy-in, the Trump University ?Gold program,? for $34,995. 24. Trump representatives don?t tell students that they are likely to incur ?nance charges, interest fees and late fees by charging this expensive seminar on their credit cards. Trump also does not tell students that by increasing their credit limits, they could damage their credit scores. Trump representatives also never inform students that by ?maxing out? their credit cards, their credit scores 8 CLASS ACTION COMPLAINT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . .- Case Document 1 Filed 04/30/10 Page 10 of 35 could drop even more signi?cantly. In fact, when Plaintiff ?maxed out? her credit . card, her previously high credit score immediately dropped 25. Mentorship - Trump University promises students who purchase the $1,495 seminar an ?entire year apprenticeship? --?one full year of expert, interactive support? where ?you will be trained properly by the best.? But in actuality, students get only a three-day seminar and an 800- telephone number to call. Trump does not provide the details, support or training the students need to actually engage in the real estate transactions mentioned Nor does it provide any mentorship. 26. Illegal practices Furthermore, the real estate practices touted by Trump University during the seminar include transactions that are illegal in Certain states, including California, such as posting anonymous ?bandit signs.? These are signs placed by the roadway that mimic yellow and black road warning signs and say, BUY HOUSES, 619-222-2222.? 27. Conflict of interest As part of the $1,495 seminar, Trump University promises to introduce students to a Trump ?power team? of mentors, real estate agents, brokers, contractors, attorneys and accountants, who are supposedly there to help the student make money in real estate. However, these Trump ?mentors? and power team members o?en guide the students toward deals in which they have a personal ?nancial interest at stake creating a severe con?ict of interest, so that the mentors pro?t while the student does not. 28. Money back guarantee students consistently complain that they have timely requested refunds under Trump University' 5 money-back guarantee, but that Trump University failed to re?md them their money. Third tier the $35,000 Mentorship Pro gram 29. 7 By the end of the $1,495 seminar, Trump University did not teach students practical real estate techniques. Instead it merely gives them a high-pressure sales pitch to purchase another program from Trump: the $34,995 ?Trump Gold Program.? Plaintiff and other students were clearly 9 CLASS ACTION COMPLAINT . UI-lhw Case Document 1 Filed 04/30/10 Page 11 of 35 reluctant to spend approximately $35,000 more on an additional program, after already paying Trump nearly $1,500. However, Plaintiff and the other students relied on the speakers? claims that they were ?guaranteed success? if they followed the techniques they would learn in the Gold seminar. 30. Trump University?s representatives told Plainti ff and class members that with the real estate mentorship they would receive in the Trump Gold Program, they could create a real estate investing business that could earn up to tens of thousands of dollars of income, and potentially much more. 31. The same misrepresentations regarding the ?on-going apprenticeship,? ?hands-on mentorship,? con?icts of interest with the mentors and ?power team,? teaching of illegal real estate practices, and failure to refund money timely requested also occurred during the Trump Gold Program. 32. Mentorship One of the biggest selling points of the Gold Program was the promise of a three-day Field Mentorship with real estate experts and investors. Trump University represented to Plaintiff and class members that the value of this mentorship alone was worth $2 5,000. See Ex. A (Contract for the Gold Program). Plaintiff and class members were told that they would receive priceless insight and information from these mentors who were experts in the real estate industry, who would personally teach them what they would need to lmow. Instead, during the 3-day mentorship, - students typically spent two days looking at real estate properties (which they could have done with a realtor for free; and were offered no unique insight or guidance), a half day at a local Home Depot and lunch, and an hour or so discussing numbers. Mentors spent little to no time discussing the contracts essential to the real estate transactions mentioned in the seminar. After the 3?days, the mentors typically quickly disappeared, in complete contradiction to what was promised: an ongoing mentor who would personally assist the student for an entire year. 10 CLASS ACTION COMPLAINT iase Document 1 Filed 04/36/10 Page 12 of 35 33. Duringthe Gold Program, there was still constantiipi-sell I other Trump University af?liate programs and products, varying in price from $495to $9,995. 34. Plaintiff and the other students in her class who signed up for the $34,995 seminar were told that deals would now be coming their way via e-mail and that ?these deals are starting to POUR IN However, few, if any deals came in, and those that did provided only minimal positive cash ?ow, generally not worth enough to make the deal and certainly not the ?tens of thousands of dollars per month? promised by Trump. 35. Trump University promised students that it would give them the contracts they needed to conduct various complex real estate transactions and teach them how to ?ll them out they never did. Even after the $35,495 program, and after numerous phone calls to Trump University, Plaintiff and other class members were not instructed how to use the contracts they would need to conduct the real estate transactions described. Trump University receives D- rating from Better Business Bureau 36. In January, 2010, the Better Business Bureau gave Trump University a D-mr'nus raring. In addition, the New York Department of Education has recently demanded that Trump University remove ?University? from its title, insisting that the ?use of the word ?university?. by your corporation is misleading and violates New York Education Law and the Rules of the Board of Regents.?7 I 7 See NY Daily Newscom, ?State Educracts Give Failing Grade to Donald Trump?s ?Misleading? Trump University, by Douglas Feiden, April 16, 2010, and CBS MoneyWatch.com, ?Is Trump University Flunking Out,? by O?Shaughnessy, April 19, 2010. . Case Document 1 Filed 04/30/10 Page 13 of 35 -.1 Complaints from Numerous Trump University Studehts Nationwide 2 37. Tarla Makaeff is not alone in her complaints regarding Trump University? 5 3 misrepresentations and unscrupulous conduct. Indeed, there are endless complaints nationwide on, the 4 internet that echo Plaintiffs complaints, including, for example: 5 6. 0 This recent post on from Susan in Michigan was posted on April 1 1th, 2010: ?We purchased a mentor program for $19,000 in 7 December 2008. We did not receive the promised materials or mentor service. We canceled - 8 immediately, calling both Rochester NY Boca Raton FL. Unfortunately we paid by check and did not have a credit card company to help us get our money back. We have made 9 several call, emails, faxes, etc. We've been lied to, deceived, promised the person with "authority" would call us back immediately (doesn?t matter when you call, they are never in) 10 and told there was a glitch in their system and our refund was being processed We still do not have our re?md and they continue to play the game. Does this sound like Donald 1 1 Trump is an honest man concerned with helping you build wealth?? I 2 0 Charles from Florida posted this on September 21, 2009, was told that after taking the 13 ?rst 3 day seminar, which cost $1,500 I could go out start making deals. . . . The only thing they want you to do is sign up for the next seminar which can cost up to $35,000.? 1 4 15 0 Joe from Florida posted this on September 18, 2009, ?What a SCAM I attended the three 16 day seminar and really learned very, very little. [Their] goal is to talk you into joining the next seminar, which can cost up to 35,000. They use almost Gestapo tactics to sign for this 17 seminar. Any questions you ask are never answered.? 18 19 0 L. Heard from Georgia had this to say on June 23, 2009, have been trying to get my 2 0 money back from attending one of the seminars and have yet to do so. My contract stated that] had 3 days a?er date of purchase to cancel and I did so in I day. I attended the 21 seminar on March 22, 2009 and here it is June 22, 2009 all they can tell me is that they see that I have done all that I was supposed to do but they don't know what is taking so long to 22 - refund my money.? http://wmnreviewopedia. oozin-?tnimu?universitvlitm 23 Dorla from Califomia posted this on, June 10, 2009, ?Trump University is a major 24 disappointment. They charged me $35, 000 for the program, which I would never have paid if I had known that the info given to me was not true. I based my decision on that 25 info! They would not return even a portion of my money after several long and tear?il conversations, even after agreeing the info was outdated and they would have to do 26 something about it. I would strongly suggest never using them. There are other gurus out 27 there that are honest and don't cost as much I can 't believe Donald Trump would allow such mist-behaving to be associated with his name. Run fast and keep running where they 2 8 are involved!? . . CLASS ACTION COMPLAINT ?Jase Document 1 Filed 04/30/10 Page 14 of 35 1 0 Yu from Los Angeles posted this on March 25, 2009, signed up the tax lien products'& as - the organization promised "Full MoneyBack Guarantee" within 10 days. I called at least 10 2 times the organization they keep on telling the different time frame story about why 3 they delayed to re?md me. It's been the 25th business days, have NOT yet received my refund. I checked found they did have a lot of ?aud issues.? 4 5 0 Linda from Newark, California had thisto say on March 6, 2009, took several Trump 6 classes and spent well over They give you a ton of information and then leave you high and dry. No support what so ever! ll! 7 universi. than 8 Rhonda from Georgia claimed her identity was used by Trump University without her 9 permission (post from September 30, 2009), ?Just had someone write me and call that said that they graduated from Trump University?s 3 day course and was led to me by James 10 Harris who said thatI was a student there. Okay - that's not true. Then, he also said that whenI came to him as a student I was almost broke and that the course made me success?rl. 1 1 Wrong again! I have never been a student of his or the school I and never been broke. That 1 2 is slander and I would watch some one who makes up stuff to make their product look better. Hopefully the success of the school is not based on lies. Whereas I am successful #1 Real 13 Estate Agent in Georgia, 6 years in a row, it was not because of Trump University or James Harris which I had no idea existed until it was brought to my attention? 1 4 15 On December 13, 2009 anotherconsumer that was scammed by Trump University wrote, 1 6 ?Do not trust Trump University! This company is a well designed scam using the name of Donald Trump who apparently doesn 't care how much more Americans get hurt this year 17 and the next ones by a weak economy. Instead he's using it to take advantage of you. They will do whatever (and I mean, whatever) it takes to get you to open your pockets to invest in 18 their company. I am sure there are tons of people like me who have lost precious money 19 because of them. So if you have to borrow and have no credit to do this or even if you have good credit, don't! They will rob from you. . .this is modern day robbery. . .and then they will 20' place in a very dangerous position. You could lose equity in your house if you have to borrow to attend, you could damage your credit if you have to max out your credit cards, or 21 you could even lose your house like so many Americans because that last bit of money that was supposedto get you through another six months or year for mortgage payments is now 22 gone based on a false promise! The scam in all of this is that the information always skims 2 3 the surface. No matter the class, you get loads of advice on buying more classes, not advice on execution. They will never tell you that it: takes 1000 steps to do something and instead 24 magnify the few positive points of real estate. Don't be fooled by them or their grand statements of ?ipping a house with 10 hours of work. They are full of it! I know because I 25 have been through it. . . .Oh and when they tell you they '11 be there for you, they '11 scram as soon as they've collected the dough. The instructors are there for their 3 day classes and 26 then off to the next city to convince more unsuspecting prospects to drop 15-35G?s. . .. 27 20091 'CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 15 of 35 0 On January 20, 2010, another con?sumer wrote, ?Trump preys on the elderly. This is the biggest SCAM. I've ever seen! My 82 year old father went to a free seminar promising to make him rich through real estate. The seminar was solely for the purpose of upselling him into attending a $1500 three day workshop by promising him they would teach him how to buy and sell foreclosures for huge pro?ts (which is totally unrealistic because the vast majority of foreclosures today are because people are upside down in their homes) Anyway, he goes to the 3 day workshop and when he comes home we ?nd out that they pressured him into spending $35k I don't care who you are there is no real estate course worth $35k. Then he proceeds to tell us how the mqiority of people there were SENIORS like him! These aren't long term investors here, these are people being tricked into thinking they can make a quick pro?t! I this isn 't the de?nition of preying on the elderly I don 't know what is. - On December 13, 2009 another consumer stated that, ?Trump University and their staff should be ashamed of themselves! They RUINED my credit! They told me I would get 10 my large investment back in my ?rst real estate deal because I would have access to amazing mentors and course content. I did what they told me in all of the courses and it was 1 1 nonsense! I maxed out my credit cards because I thought Donald Trump wouldn't have such a sorry excuse for a school just to make more money. But he is a greedy man so I should 12 have known. Be aware that when they tell you to increase your credit limit to purchase real estate it 's really to scam you out of tons of money that you've worked so hard for.? 1 3 comp] ai oardc om-"c omplai ntst'tnun p-universitv?cz 88 69 9.1mm 14 On November 3, 2008, another victim stated, ?At the retreat, the only three things that 15 happened: theypre?qualify you for their $35, 000.00 GOLD PACKAGE, they ask you to call all your credit card companies and request a credit limit increase (so you can pay for 16 the 3510, then during three days the sell you over and over their mentoring services and 17 keep telling you that the information you are waiting to hear is three days later nothing worth is mention. Their material is completely worthless. 100+ pages of content- 18 empty power point print outs. I requested a re?ind, both in person and in writing and was denied. . . .BE AWEARE, THESE ARE MASTERS OF THE 1 9 1829 20 On February 27, 2009, Patt from Sacramento, California wrote: ?Trump University real 21 estate programs are ALL scams. I paid the $1500 for the 3 day course which turned out to be three days of them trying to get me to sign up for the $21,000 gold course. They ask for 22 all your ?nancial information (which fortunatelyl re?lsed to give them) and then spend the 23 remaining "class time" pulling people out to hard close them on the gold program private coaching.? 24 25 On June 19, 2008, Truth from Brooklyn, New York stated: wished I saw this site 26 BEFORE I fell for paying the $1,500 at the free seminars. they will take your money and the 3 day event will be used to make you buy more surf]? and even after you buy more 27 staff; they will sell you more. am not sure how much trump is making from this. But, i do feel that if he know what bull they are teaching, he would not authorize to use his name. as 28 you may know, this is the same things that other companies are doing to sell you more and Kit-Ease Document 1 Filed 04/30/10 Page 16 of 35 more training. the only difference in this situation is that they use trump name.? seminar12004511131111 0 On March 20, 2008, another consumer ?om Las Vegas, Nevada that was scammed by Trump University wrote: Trump University will rip you off.. . . They do not teach you what they say they will teach you and what you have paid for. They also do not deliver what they say they will deliver and if you ask for a refund on something that you have not received they will not give it to you. All that I can say is do your researc On August 7, 2007, a real estate investor from New York, New York wrote: ?Trump University is the biggest scam After speaking withmost everyone employedth ere only ONE yes, 0% person on their stay)? invests in real estate. I have tried to blog several times asking if Mr. Michael Sexton (President of Trump University) has properties and I have never received a response. I paid over $20,000.00 after they told me that I would get personalized service and all I got was a box ?lled with books to read and terrible so?ware that costs under $500.00 when buying from Barnes Noble. The live events were a total joke and even the main presenter there barer has investing experience. I fortunately have enough money to not go broke because of them but almost everyone there took out loans or maxed out their credit cards to get this trash service. It is just like every other late night infomercial and am disgusted by Mr; Trump being af?liated or supporting this program. I have talked to several different people there because each person I get handed off to quits or got fired from the organization. They don't know what they are doing and are preying on the weak who are to makeit in lifeSHAME ON YOU MR TRUMP AND TRUMP FACTS 38. Plaintiff Tarla Makaeff purchased the three-day Trump University "Fast Track'to Foreclosure Training" workshop for approximately $1,495. Two people were permitted to attend for the $1,495 price, so Plaintiff attended with a friend and split the cost. During the three-day workshop, Plaintiff was told to raise her credit card limits four times so she could enter in to ?real estate transactions.? However, at the end of the session, Trump University revealed its real reason for pushing Plaintiff and class members to extend their credit limits: to use that credit to purchase an additional $35,000 Trump seminar. Based on Defendant's numerous misrepresentations, on or about August 10, 2008, Plaintiff enrolled in Trump?s Gold Program for $34,995, plus the vaiiable APR ?nances charges, interest fees, and late fees she had to pay her credit card companyCLASS ACTION COMPLAINT . dlase Document 1 Filed 04/30/10 Page 17 of 35 39., The day Plaintiff signed up for the $34,995 program,?llarnes immediately told Plaintiff that he would now be personally available to her by phone and e-mail, and shortly thereafter e-mailed to her ?we can do a ton together.? Then, she never heard from him again. 40. ?Guarantee? that her ?rst deal would pay for her $35,000 seminar - While Plaintiff was on the fence about spending the additional money, Trump University speaker Tiffany Brinkman persuaded Plaintiff to sign up by ?guaranteeing? Plaintiff that her ?rst real estate deal would earn her in the ballpark Of $35,000, so that she could immediately pay off her Trump University debt, leaving only pro?ts for ?re future. Although Plaintiff signed up for the seminar in reliance on this representation, it could not have been farther from the truth? Plaintiff participated in no real estate deals, and never made any money. 41. Mentors - Plaintiff was assigned two mentors, and initially, the mentors would return calls, but would only speak to Plaintiff for 2-3 minutes, offering no practical advice. After that, although they were supposed to provide ?mentorship? to Plaintiff for a full year, they mostly disappeared. After Plaintiff complained about the lack of assistance provided by her assigned mentors, Rick McNally and Mike Kasper, Tad Li gnell, the mentor with the ?power team,? offered to help her personally, but then engaged in misappropriate conduct and misadvised her regarding a property in Las Vegas in which he had a personal ?nancial interest. 42. After spending approximately $60, 000 over the course of an entire year to attend numerous Trump University related or endorsed seminars, only two real estate deals ever came to Plaintiff, and Plaintiff did not accept either, as both were ?awed and appeared unpro?table. 43. In the ?rst deal offered to Plaintiff, Trump mentor Tad Lignell introduced Plaintiff to a real estate agent, Noah Herrera of Las Vegas regarding a property purchase in Las Vegas. Lignell did not disclose to Plaintiff that he had a ?nancial interest in referring Trump students to Noah Herrera. The Power Team then misquoted camps to Plaintiff Rather than mailng a pro?t on the deal, as she 16 CLASS ACTION COMPLAINT Case Document 1 Filed 04/39/10 Page 18 of 35 1 would have made if the comps had been Correct, she would havenlikely suffered a 20%. loss on the 2 transaction. When she discovered that the comps were incorrect and that she was likely tolose money 3 on the deal, she looked for a way out. As it turned out, Mr. Lignell?s protege fraudulently and 4 illegally altered the real estate documents Plaintiff had previously signed at the escrow of?ce without Plaintiffs authorization or approval. As a result of this illegal and fraudulent conduct, Plaintiff was 7 permitted to void the transaction, which she did. 8 44. The second, and only other, real estate transaction that came Plaintiffs way 9 involved a Houston property. After being told by Trump representatives that the deals ?are staring 10 to POUR IN the only deal that came in was a Houston deal. It was outside of Trump 1 1 University?s recommended guidelines for real estate investing, as it would provide only $40/month 12 positive cash ?ow, and Trump?s own representative, Stephen Gilpin instructed Plaintiff never to 13 accept a deal under $100/month positive cash ?ow. Furthermore, this potential deal raised an 14 inherent and improper con?ict of interest, as it was referred by a partner (Mike Kasper) to the Trump 15 mentor, Rick McNally, who stood to ?nancially bene?t ?om the deal. 16 45. Bandit signs - Furthermore, certain real estate practices that Trump University 17 taught Plaintiff and other class members during the Seminars included transactions that are illegal in 13 California and other states, such as posting anonymous ?bandit signs.? These are the signs that are 19 posted by the side of the roadway, mimic black and yell ow road warning signs and say, BUY 20 HOUSE S, 6 1 9-222-22 22 Plaintiff was posting bandit signs, as taught bythe Trump seminars she 2 1 attended, and had no idea they were illegal until she was contacted by the District Attorney?s Of?ce 22 and told that those techniques could subject her to hundreds of thousands of dollars in ?nes, a 23 misdemeanor charge, and up to sixmomhs injai!._ As a result, she was requiredto retain a criminal 24 attorney. 25 46. Plaintiff?s experiences with Trump University are typical of the class and the many 25 hundreds (if not thousands) of other Trump University students who have registered their complaints 27 online and with Defendant. 28 .4 . CLASS ACTION COMPLAINT ??Ease Document 1 Filed Page 19 of 35 47; Plaintiff has suffered injury in fact and loss of money or property. She has been I . damaged by, inter alia, the amounts she has paid for Trump University Seminars. CLASS ALLEGATIONS 48. Plaintiff brings this class-action on behalf of herself individually and all others similarly situated, pursuant to Rule 23(b) (2) and of the Federal Rules of Civil Procedure. 49. The proposed class consists of all persons who purchased Seminars from Trump University throughout the United States from April 30, 2006 to the present. Excluded from the Class are Trump University, its af?liates, employees, of?cers and directors, persons or entities that distribute or sell Tnimp University products or programs, the udge(s) assigned to this case, and the attorneys of record in this case. Plaintiff reserves the right to amend the Class de?nitionif discovery and further investigation reveal that the Class should be expanded or otherwise modi?ed. 50. This action is properly brought as a class action for the following reasons: the United States that the joinder of all class members is impracticable. While Plaintiff does not the proposed classis so numerous and geographically dispersed throughout know the exact number and identity of all class members, Plainti? is informed and believe that there are thousands, if not tens or even hundreds, of thousands of class members. The precise number of members can be ascertained through discovery, action will provide substantial bene?ts to both the parties and the Court; (0) interest in the questions of law or fact alleged herein since the rights of each proposed class member the disposition of Plaintiffs and proposed class members? claims in a class the proposed class is ascertainable and there is awell-de?ned community of were infringed or violated in the same fashion; predominate over any questions that may affe ct particular class members. Such common questions there are questions of law and fact common to the proposed class which of law and fact include, but are not limited to: Whether Trump University?s conduct was unlawful, unfair or ?audulentCLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page 20 of 35 (ii) Whether Trump University?s advertising is likely to deceive the public; I Whether Trump University?s conduct was false, misleading or likely to deceive; I (iv) Whether Trump University violated the Whether Trump University violated the (vi) Whether Trump University violated the (vii) Whether anmp University has received funds from Plaintiff and class members that they unjustly received; Whether Trump University is in breach of contract; (ix) Whether Trump University is in breach of the implied covenant of good faith and fair dealing; Whether Trump University is liable for intentional and/or negligent misreprese ntations; (xi) Whether Trump University is liable for making false promises; (xii) Whether Plaintiff and proposed class members have been banned and the proper measure of relief; Whether Plaintiff and proposed class members are entitled to an award of punitive damages, attorneys? fees and expenses against Defendant; and (xiv) Whether, as a result of Defendant?s misconduct, Plaintiff is entitled to equitable relief, and if so, the nature of such relief", (6) class. Plaintiff and all class members have been injured by the same wrongful practices of Plaintiff's claims are typical of the claims of the members of the proposed Defendant. Plaintiff 5 claims arise from the same practices and conduct that give rise to the claims of all class members and are based on the same legal theories; Plaintiff will fairly and adequately protect the interests of the proposed class in that she has no interests antagonistic to those of the o?rer proposed class members, and Plainti?? has retained attorneys experienced in consumer class actions and complex litigation as counsel; 19 CLASS ACTION COMPLAINT lease Document 1 Filed 04/30/10 Page 21 of 35 .- 'Aclass action is superior to other available methods for the fair and ef?cient 2 adjudication of this controversy for at least the following reasons: DJ Given the size of individual proposed class member?s claims and the expense of litigating those claims, few, if any, proposed class members could afford to or would seek legal redress individually for the wrongs Defendant committed against them and absent proposed class members have no substantial interest in individually controlling the prosecution of individual actions; 1 (ii) This action will promote an orderly and expeditious administration and adjudication of the proposed class claims, economies of time, effort and resources will be 10 fostered and uniformity of decisions will be insured; and 11 Without a class action, proposed class memberswill continue to 12 suffer damages, and Defendant?s violations of law will proceed without remedy while Defendant 13 continues to reap and retain the substantial proceeds of its wrongful conduct. 14 (iv) Plaintiff knows of no dif?culty that will be encountered in the 15 management of this litigation which would preclude its maintenance as a class action 16 51. Defendant has, or has access to, address information for the Class members, which 17 may be used for the purpose of providing notice of the pendency of this class action 18 ?52. Plaintiff seeks damages and equitable relief on behalf of the proposed class on 19 grounds generally applicable to the entire proposed class. 20 FIRST CAUSE OF ACTION 21 (Violations of California Business and Professions Code 17200) 22 53. Plaintiff re-alleges and incorporates by reference the allegations contained in the 23 paragraphs above as if fully set forth herein 24 54. California Business Professions Code 17200 prohibits acts of unfair 25 competition, which means and includes any ?unlawful, unfair or fraudulent business act or practice? 26 and any act prohibited by Cal. Bus. Prof. Code 17500. 27 55. Defendant violated Cal. Bus. Prof. Code 17200 ?5 prohibition against engaging 28 in an ?unlawful? business act or practice by, inter alia, making the material misrepresentations 20 CLASS ACTION COMPLAINT lizase Document 1 Filed 04/30/10 Page 22 of 35 1 regarding its Seminars as set forth more fully elsewhere in this Complaint, in violation of Cal. Civ. Code 1572 (actual fraud), 1573 (constructive ?aud), 1709 and 1710 (deceit), 1750 et seq. (the CLRA), Cal Bus. Prof. Code ?17500 (false advertising), and the common law, including the ALAIN breach of contract, breach the covenant of good faith and fair dealing and breach of the duty to disclose. 56. Plaintiff reserves the right to allege other violations of law which constitute other unlaw?rl business acts and practices. Such conduct is ongoing and continues to this date. 57. Defendant violated Cal. Bus.'& Prof. Code 1 7 20 0'5 prohibition against engaging in DOOMQKJI a "fraudulent" business act or practice by, inter a1 ta, disseminating, through common advertising, 10 untrue statements about its Seminars that have a tendency to mislead the public and making 1 1 numerous common material misrepresentations about its Seminars with the intent to induce reliance 12 by consumers to purchase Defendant's Seminars. Furthermore, Defendant violated 17200 by- 13 issuing misrepresentations and untrue statements at the Trump University Seminars. 14 58. The foregoing conduct also constitutes ?unfair? business acts and practices within 15 the meaning of Cal. Bus. Prof. Code 17200. Defendant's practices offend public policy and are 16 unethical, oppressive, unscrupulous and violate the laws stated Defendant's conduct caused and 17 continues to cause substantial injury to consumers and their property, including Plaintiff and 18 proposed class members. The gravity of Defendant?s alleged wrongful conduct outweighs any 19 purported bene?ts attributable to such conduct. There were also reasonably avail able alternatives to 20 Defendant to further its business interests. 21 59. Plaintiff and Class members have sufferedinjury in fact and have lost money and/or 22 property as a result of Defendant's unlawful, fraudulent and unfair business practices and are 23 therefore entitled to the relief available under Cal. Bus. Prof. Code ?l7200 et seq, as detailed 24 belowCLASS ACTION COMPLAINT . . . . . . . . . . . . . . . . . lbase Document 1 Filed 04/30/10 Page 23 of 35 SECOND CAUSE OF ACTION 1, (Violations of the Consumer Legal Remedies Act, California Civil Code 1750 et seq.) 60. Plaintiff re-alleges and incorporates by reference the allegations contained in the paragraphs above as if fully set forth herein. 61. This cause of action arises under the Consumers Legal Remedies Act Cal. Civ. Code 1750 et seq. Plaintiff is a consumer as de?ned by Cal. Civ. Code 1761(d). Defendant's Seminars constitute "services" and/or "products" as de?ned by Cal. Civ. Code 1761(a) and At all times relevant hereto, Defendant constituted a ?personi? as that term is de?ned in Cal. Civ. Code 1761(0), and Plaintiffs and class members? purchases of Defendant's Seminars constitute ?transactions,? as that term is de?ned in Cal. Civ. Code 1761(e). 62. Defendant violated and continues to violate the CLRA by engaging in the following deceptive practices speci?cally proscribed by Cal. Civ. Code 1770(a), in transactions with Plaintiff and class members that were intended to result or which resulted in the sale or lease of goods or services to consumers: In violation of Cal. Civ. Code l770(a)(5), Defendant's acts and practices constitute misrepresentations that the Seminars in question have characteristics, bene?ts or uses which they do not have; In violation of Cal. Civ. Code l770(a)(7), Defendant has misrepreSented that the Seminars are of particular standard, quality and/or grade, when they are of another; (0) In violation of Cal. Civ. Code 1770(a)(9), Defendant advertised the Seminars with the intent not to sell them as advertised or represented; and In violation of Cal..Civ. Code 1770(a)(10), Defendant advertised the Seminars with intent to not supply reasonably expectable demand 63. Defendant's uniform representations as set forth more fully elsewhere in this Complaint were false, deceptive, and/or misleading and in violation of the CLRA. 64. Pursuant to Cal. Civ. Code 1782, Plaintiff noti?ed Defendant in writing by certi?ed mail of the particular violations of Cal. Civ. Code 1770 alleged herein, andhas demanded CLASS ACTION COMPLAINT . these Document 1 Filed 04/30/10 Page 24 of 35 1 that Defendant recti fy the problems associated with the actions detailed above and give notice to all 2 affected consumers of its intent to so act. Plaintiff sent this notice by certi?ed mail, return receipt requested, to Defendant's principal place of business. Jim 65. If Defendant fails to rectify or agree to rectify the problems associated with the actions detailed above and give notice to all affected consumers within 30 days after receipt of the Civil Code 1782 notice, Plaintiff will amend this Complaint to seek actual, punitive and statutory damages and all other relief available to Plaintiff and the Class under Civil Code 1780. 66. In addition, pursuant to Civil Code 1780(a)(2), Plaintiff is entitled to, andtherefore seeks, a Court order enjoining the above-described wrongful acts and practices that violate Cal. Civ. 10 Code 1770. 1 67. Plaintiff and the class are also entitled to recover attorneys? fees, costs, expenses and 12 disbursements pursuant to Cal. Civ. Code 1780 and 1781. 13 THIRD CAUSE OF ACTION 14 (Untrue and Misleading Advertising in Violation of Cal. Bus. Prof. Code ?_17500 et seq.) 15 16 68. Plaintiff re-alleges and incorporates by reference the allegations contained in the 17 paragraphs above, as if fully set forth herein 18 69. California Business Professions Code 17500 prohibits various deceptive 19 practices in connection with the dissemination in any manner of representations which are likely to 20 deceive members of the public to purchase products and services such as the Trump University 21 Seminars. 22 70. Defendant disseminated, through common advertising, untrue statements about its 23 Seminars and Defendant knew or should have known that the Seminars did not conform to the 2 4 advertisements representations reg arding?the Seminars. Defendant intended consumers to rely upon - 25 the advertisements and numerous material misrepresentations as set forth more fully elsewhere in the 26 Complaint. Plaintiff and the Class relied upon the advertisements and misrepresentations to their 27 detriment. I 28 23 CLASS ACTION COMPLAINT Case Document 1 Filed 04/30/10 Page aresult'of theiforegoin'g?laintiff, and otherlCla-ss' members, and consumers are 2 entitled to injunctive and equitable relief and damages in an amount to be proven at trial. FOURTH CAUSE OF ACTION (Breach of Co'ntract) 72. Plaintiff re-alleges and incorporates by reference the allegations contained in the paragraphs above as if fully set forth herein. 1 73. Contracts exist between Plaintiff, class members and Trump University. Plaintiff and Class members entered into agreements with Trump University for a three-day Seminar for which they paid approximately $1,495. Plaintiff and some class members also entered into an 1 0 agreement with Trump University for the Trump Gold Program for which they paid about $34,995, 1 1 plus the variable APR ?nances charges, interest fees, and late fees thede to pay to their credit card 12 companies. Attached hereto as Exhibit A is a true and correct copy of a contract for the Trump Gold 1 3 Program. 14 . 74. Under Plaintiffs and each Class member's contracts, Plaintiff and the Class 15 members were only required to pay the amount of the Seminar in each Class member's contract. 16 75. All conditions precedent under the contracts have been performed by Plainti?' and 17 the Class, including the payment amount of the Seminars. 1 8 76. Trump University breached the terms of its standardized contracts with Plaintiff and 19 the Class by failing to provide them with the promised products and services as contracted. 20 77. As a result of Defendant's breach of its contracts, Plaintiff and the Class have been 21 damaged in an amount to be determined at trial. I 22 FIFTH CAUSE OF ACTION - 23 (Breach of the Implied Covenant of Good Faith and Fair Dealing) 24 78. Plaintiff re-alleges and incorporates by reference the allegations contained in the 25 paragraphs above as if fully set forth herein. 26 79. The law implies a covenant of good faith and fair dealing in every contract. 27 28 24 \o?ooxim Case Document 1 Filed 04/30/10 Page 26 of 35 80. Defendant violated this covenant of good faith and fair dealing in its contract with Plaintiff and members of the Class by, inter alia, misrepresenting to Plaintiff and the Class the true nature of the Seminars as alleged more fully elsewhere in the Complaint. 81. Plaintiff and members of the Class performed all, or substantially all, of the signi?cant duties required under their agreements with Defendant. 82. The conditions required for Defendant's performance under the contract agreements had occurred 83. Defendant did not provide and! or unfairly interfered with the right: of Plaintiff and Class members to receive the bene?ts under their agreements with Defendant. 84. - Plaintiff and the Class have been damaged by Defendant's breach of the implied covenant of good faith and fair dealing in an amount to be proven at trial. SIXTH CAUSE OF ACTION (Money Had and Received) 85. Plainti?' re-alleges and incorporates by reference the allegations contained in the paragraphs above as if fully set forth herein 86. Defendant improperly received and continues to improperly receive from Plaintiff and class members millions of dollars as'a result of the conduct alleged above. 87. As a result, Plaintiff and the class have conferred a bene?t on Defendant to which Defendant is not entitled. Defendant has knowledge of this bene?t, wrongfully and deceptively obtained this bene?t, and has voluntarily accepted and retained the bene?t conferred on it. Defendant will be unjustly enriched if it is allowed to retain such funds and, therefore, a constructive trust should be imposed on all monies wrongfully obtained by Defendant and the money should be disgorged from Defendant, and returned to Plaintiff and the class. SEVENTH CAUSE OF ACTION (Negligent Misrepresentation) 88. Plaintiff re- alleges and incorporates by reference the allegations contained in the paragraphs above as if ?illy set forth herein. 25 CLASS ACTION COMPLAINT Ease Document 1 Filed 04/30/10 Page 27 of 35 89. As alleged herein, Trump falsely represented to Plaintiff and members of the Class that theywould receive a ?complete real estate education,? a ?one year apprenticeship,? one-on-one mentorship, practical real estate techniques and contracts, a ?power team? of real estate agents, lenders, personal ?nance managers, property managers and contractors, and were assured that although the seminars were costly, they would make the money back in their ?rst real estate deal, and could make up to tens of thousands of dollars per month or more. 90. Instead of a complete real estate education, students merely received an ?infomercial? pushing additional seminars or workshops they were told they would need to take to succeed The ?one year apprenticeship? they were promisedwas actually just a 3-day seminar; the one-on-one year-long mentorship consisted of no practical insights and no mentorship, but rather excursions to Home Depot and ?mentors? who either recommend real estate deals that they stand to bene?t from ?nancially, raising a con?ict of interest, or immediately disappeared and failed to return calls. 91. Trump University representatives also told students during the 3?day seminar to raise their credit card limits 2-4 times during the break for ?real estate transactions,? and had students prepare detailed ?nancial statements, presumably for real estate purchases, when in fact, Trump?s real reason for this was to assess how much money each student had to spend on the next Trump seminar, and to persuade the students to use their increased credit limit to purchase the Trump Gold Program for $34,995. 92. Trump's misrepresentations were supplied for the purpose of affecting Plaintiffs and Class members' ?nancial decisions. 93. Trump had no reasonable grounds for believing that its misrepresentations were true. '94. Trump failed to exercise reasonable care and! or diligence in communicating its misrepresentations. 95. Trump?s misrepresentations were objectively material to the reasonable consumer, and therefore reliance upon such representations may be presumed as a matter of law. 96. Trump intended that Plaintiff and members of the Class would rely on its misrepresentationsCLASS ACTION COMPLAINT . . . . . . . . . . . . . . . . . . . . . . Case Document 1 Filed 04/30/10 Page 28 of 35 97. Plaintiff and members of the Class reasonably and justi?ably relied to theiri?i detriment on Trump's misrepresentations. 98. As a proximate result of Trump's misrepresentations, Plaintiff and members of the Class were damaged in an amount to be proven at trial. 99. Trump directly bene?ted from, and was unjustly enriched by, its misrepresentations. EIGHTH CAUSE OF ACTION (Fraud) 100. Plaintiff re-alleges and incorporates by reference the allegations contained in the paragraphs above as if fully set forth herein. 101. As alleged herein, Trump has intentionally and falsely represented to Plaintiff and members of the Class that they would receive a ?complete real estate education,? a ?one year apprenticeship,? one-on-one mentorship, practical real estate techniques and contracts, a ?power te am? of real estate agents,lenders, personal ?nance managers, property managers and contractors, and were assured that although the seminars were costly, they would make the money back in their ?rst real estate deal, and could make up to tens of thousands of dollars per month or more. 102. Instead of a complete real estate education, students merely received an ?infomercial? pushing additional seminars or workshops they were told they would need to take to succeed. The ?one-year apprenticeship? they were promised was actually just a 3-day seminar; the one-on-one year-long mentorship consisted of no practical insights and no mentorship, but rather excursions to Home Depot and ?mentors? who either recommend real estate deals that they stand to bene?t from ?nancially, raising a con?ict of interest, or immediately disappeared and failed to return calls. Trump?s representations were false and Trump knew the representations were false when it made them, or made the representations recklessly and without regard for its truth 103. Trump University representatives also told students during the 3-day seminar to raise their credit card limits 2-4 times during the break for ?real estate transactions,? and had students prepare detailed ?nancial statements, presumably for real estate purchases, when in fact, Trump?s real reason for this was to assess how much money each student had to spend on the next 27 . CLASS ACTION COMPLAINT ?Ease Document 1 Filed 04/30/10 Page 29 of 35 Trump seminar, and to persuade the students to use their increased credit limit to purchase the Trump Gold Program for $34,995. 104. Trump intended that Plaintiff and the members of the Class rely on the representations. 105. Plaintiff and members of the Class reasonably and justi?ably relied to their detriment on Trump's misrepresentations. 106. As a proximate result of Trump's misrepresentations, Plaintiff and members of the Class were damaged in an amount to be proven at trial. 107. Plaintiff and members of the Class? reliance on Trump?s representations were a substantial factor in causing their harm. NINTH CAUSE OF ACTION (False Promise) 108. Plaintiff re-alleges and incorporates by reference the allegations contained in the paragraphs above as if fully set forth herein. 109. As alleged herein, Trump made a number of promises to Plaintiff and members of the Class, which were important to Plaintiff and members of Class? decision to purchase Trump?s Seminars. 7 110. Trump did not intend to perform these promises when it made them. 111. Trump intended that Plaintiff and members of Class rely on these promises and Plaintiff and members of Class did reasonably rely on Trump?s promises. 112. Trump did not perform any of the promised acts. 113. As a proximate result of Trump's failure to act on its promises, Plaintiff and members of the Class were damaged in an amount to be proven at trial. 1 14. Plaintiff and members of the Class? reliance on Trump?s promises were a substantial factor in causing their harm. PRAYER FOR RELIEF WHEREFORE, Plaintiff prays this Court enter a judgment against Trump University that: 28 CLASS ACTION COMPLAINT whoEase Document 1 Filed 04/30/10 Page 30 of 35 A. This action be certi?ed and maintained as a class action under Rule of the Federal Rules of Civil Procedure and certify the proposed class as de?ned, appointing Plaintiff as representative of the Class, and appointing the attorneys and law ?rms representing Plaintiff as counsel for the Class; B. Awards compensatory, statutory andfor punitive damages for De fendant?s breach of contract, breach of the implied covenant of good faith and fair dealing, fraud, negligent misrepresentation and false promises, where such relief is permitted; C. Awards Plaintiff and pr0posed class members the costs of this action, including reasonable attorneys? fees and expenses; D. Orders Trump University to immediately cease its wrongful conduct as set forth above; enjoins Trump University from continuing to falsely market and advertise, conceal material information, and conduct business via the unlawful and unfair business acts and practices complained of herein; orders Trump University to engage in a corrective notice campaign, and requires Trump University to refund to Plaintiff and all of the class members the funds paid to Defendant for the subject Programs; E. Awards equitable monetary relief, including restitution and disgorgem ent of all i11- gotten gains, and the imposition of a constructive trust upon, or otherwise restricting the proceeds of Defendant?s ill-gotten gains, to ensure that Plaintiff and proposed class members have an effective remedy; F. Awards pre-judgment and post-judgment interest at the legal rate; and G. Such further legal and equitable relief as this Court may deem just and proper. . 29 CLASS ACTION COMPLAINT . . - . . . . . be? 143' Id. 92. . fade-440s hJ . . 32*: p.51 30', 203129.. .Case Document 1 Filed 04/30/10 Page 31 of 35 f1gri?a-1 by jury- an "all i'ssuesso tri-jailij?e; HELEN 1:.gztaLDES ZELD-EZS 36.: 625 .Bmadway; 811113.995 Sa?gDicgopczaili-fmin-ia 3253101 "I'gleplmne: (611' 34262000 F'acs'im lie-.16 new!) ma 1113;651:131; JENSEN (2-51 1-456)- .6535 W631 Breatlwayi Suite 1900? 25:6312?1' Sim Di?gogm 912-10in 2.31-1038 ?Faxzml 9.12314423- rienscma?rardimwmm' ?Attorney?s ?61731?!a?niff?lfarta Milk-am} hiciivldualh? and. Similarly:Situated 3t; 1 ON Case Document 1 Filed 04/30/10 Page 32 of 35 EXHIBIT A Case Document 1 Filed 04/30/10 Page 33 of 35 . 5,72 . .- . . @3133?? - -- ?'anamrm, i' Case Document 1 Filed 04/30/10 Page 34 of 35 'sz {Run 711233 4.: civil?quvc: the infatmmiun cnmningd herein neither rc' lace the ?iing and service dfpiwdin?fm pen; 0% uircd by law, mic:qu mics 0! Item? This Immappmv?cd by 1th Judicial 0 the United dockcl 0N Tl IE OF THE FORM) 1. PLAI RPS On Behalf of HBrSetf and Ailzomers Similarly Situated CIVIL COVER SHEET lgistgd minim Orange County ?rmcar?i?. IS cases) (AC) Nam. Numbng ZELDES 3000.906. san Diego, CA 92101. Tel: 619-342-8000 URISDICTIOI (Plat: an "X'Tin but: Um: Only) fji Haintitr 0?20; Dcrendmu NATURE OF SUIT ?13 l?cdc?? Quminn N4 (115; Gm?n'mcnf Nata-Party) him 5in (lndicatc'cis?innship of'Prmics in in One llnx?Onlv?o . I (Hum: an ?tazps in Scpz?mbg: l974. is u?quucd for wamm (l-?crnivemiy Cum Only) 5ng umy Listed Deli-Man; (10: NOTE: CASES. 030000 momma or me LANQIm-gowrgu. TRUMP UNIVERSITY. 0.0. a New Yong; gidhjig?auiaping iC'oniban'v. and DOES 1 through 50, inclusiveCWI? W23 {56:0 0? 0 .1..- gm ?1 ?0'0;de :7 2: use of of ohniua?ngm An In Ivna foli??himi?? 3751?.h?5' . 7' #113430 New York DEPUT WVG and Om: Eb: Defendant) I I I Imz'r . mirI 000? China: Sin]: 2! 1 Incorporatedoyl'lincipanncc '4 .04 of Businm?ln This Slau- Cit?i'zcn (ifA'nomn?Sl'aI?c' 2 2 Incqmomcd and?n?palj?ku C1 5' I 5? of Iiusincss?ln Maxim- Sm'c: Citizrn 0: :Cl 3 thtign Nation-1 6 ?Cl 6: Fan-im- CtinmnImman- .11 120 Maxim: Ac! =3 chuliamc ISO Rchm?cry: bf :I-qinI'pnml- nfhlilgm?n! 151 Maiicmcgac: 152' swam 0m; (Exit; \?clpInImI?s'f? ?lSjJ Rummy NIO~fcIr?gym?nz IuIil?} 001;: canning I I95 Cm?r?uct; l?mduct? Liability :1 0 0 0'3 {30 I'Emosm. INJURY ransom?, ml?un-v 0510' El 0 A-ppch?ZB ugc 15$ 3100031101: 162 Personal Injuxy'- I CI 520 Ulhri F?md Drug CI 423 \t?ithdn?uml hiqilaq: Pnydu? Mn}. Maipmcu'cjc Cl 6:50:12}; RIeImcd Seizure .28 05c 157 .l;iah?ilitjr 365 Pcrsanal Injmy .0 Inf i?igpmyEl-USC 520 Assailqu a; Liahitity- CI I530 Liq'?m?um 'i If ?25,594 ?Slnudcr D, 0108 Aim?); Pcrsunal {3-7de Rik}: 1'10ch Cl 820 CopyiighuI 3730 ream) Enmloycn? lnjuq?I?mRuIctI 650 Aitlinbillty. Cl 83!} [faltan Liab?iay I Liability I 6350.0ccup?li0ml? 340 01.00;: museum; mor?u?n' sums-mum 1455105th Pl?dunl :5 HO 00m Fraud CI 690011101 . LiIabiligyII 371ITmm in LIng?ng 2252:2101: 350 Mom! Vehicle 355 M0101;Vchi;k I ICI Dam-03:. Irradqu Liability .305" Jig?p'cny?ljamnagp- 360 0th? PIcts'xmaI Il?deu'ct Liabi?r}: lniuw :3 7100001000: SIiandarIds I?Act II II I D, 120 '730?Labqr?fgml?cpqnihg; 8: I153 5? 'Eli 533:3? minimum"1302000230 C3040 Railway'hbm?u 2?40 Lana! {1 I120 230 Run! hat-3:1? iijz?lmt?l ?11240 Toiigloilgin?d 24.5 Tau i?mtiuclILiIshility I?mpcu}: I3 0 23 Cl Voting, 2! 5 IU'MoIiam; to Ci 79000;? Lain; Luiga'ugn Rct. hm: I AIch :1 seam?. (1395, II 062mm Lung (-923) a 89; 00?; .sg?smiuc xv: Cl 055 asi (4:05:01) ERA maxim 3115?: 030 8'10 I oi?mre'nsmu Cl 071 my 2605:: 7006; 0.3 I . 442 Employment - ScInIIcInc: 4413 Basing! 1?than Corpus: 0300:0210! 4.3.: waif?? 535 0001i: i?eqa'lly 44$ Afn?r. :11 6?30 Mgnd?mu??' Qilm {ampl?nmgm :1 550 'Cin?rnigmi- Amer: - 3 555 Other: 440 (mm Civil Righls' 3: U. 46?. Naugmlimuqn {Sf?abdu CW5:in AlicnIDcminp'e? 0465155010} lt?migmieh I I 400 Stale 110500005: 7? 450 ?ank: and Banking; JSOIE?mmg-rce D??min?ti?': 'CEmIptI?EkglIlnIixuihuIsI 490 c'aijeI/Sn; I310 Sqlmiv?e?sin'icq I Eschi?se- . . . .875'Ci10imInqr Chums: . ?12 um; 3410: I 8?30 iistinns' '80! Agticuliqml Act: II 392 Economii: Slhbiliz?im; Act .89] 333 eqrgy?AIlIigdiimi730:. gflri?u'rmalih? . . . . . ?QD?Ahpcal qr IFcc IDcIImm?InaliiIsn ?ncici ?qml?t?eg?s in Jujiic'c 930 Cohgtiyli?naiitf 0F Stile Smitch VIA FAX v. omens (Plate 011 "Xu'i? On: 130x Only) kip .I a! to Bimini =51! Origink? Cl 2' R0131ch from ?3 Remuxld?d frime Cl 6! ReinStatcdm? .57 :l?ml'igf?l'w?f'wh t3 6 Multidist?cl' 7 firm?. Ismcceding Sum.- cm; AppclImuICoun 000;;ququ II-i-?gmion I $71. 0000200001100 I ecuons lion of?mus?c; Lonsu er.Iclass action tulc un {3?69h?g (Do nut Cith unicss diversity): VII, IN NT: 9] Curie}; IF 1005.13 A UNDER agar; :3 .vm; RELATED CAsusy (ch DEMAND S: I-IECK YES only if 04-00mm in cquplhim: DEMAISD: ?Yes, 10 N0 JUDGE I I I Dagmar NUMBER mm: A. )0 61501;?. ?onxav mean - 7 0 0413012010 ,?4'v I: moun$fjgb I ?73; Mn use In ma. 10051:; Case Document 1 Filed 04/30/10 Page 35 of 35 DUPLICATE Court Name: USDC California Southern 3 Recet pt Number CASOT 3039 Cashter ID: mbatn Transactlon Date: 04/30/2010 :Payer Name: KNOX ATTORNEY SERVICES FILING FEE For: MAKAEFF TRUMP UNIVERSITY Case/Party - Amount: $350.00 CHECK I Check/Money Order Num: 6019 Amt Tendered: $350.00 Total Due: $350.00 Total Tendered: $350.00 Change Amt: $0.00 There w1ll be a fee of $45.00 charged for any returned check.