On Universities And Such, Or, If Obama’s A Kettle, Is Donald Trump Black?

Just about 40 seconds after (Yes, He’s Actually The) President Barack Obama brought forth his Certificate of Live Birth unto the world Donald Trump was accusing Obama of somehow sneaking his way into some University or another.

If Trump’s to be believed, Obama was a terrible student at a College, and then he somehow snuck his way into a University; after that he basically grifted his way into becoming the President of the Harvard Law Review.

Trump would tell you that he’s a hustler, that Obama is, and we’ve got to do whatever it takes to figure out what kind of semi-illegal shenanigans Obama’s University experience was all about.

But here’s the thing: Donald Trump has his own history of semi-illegal University shenanigans—and it appears that some of his semi-illegal shenanigans continue to this very day.

''I don't lie. When I speak, I believe it to be true. One week later, it may no longer be.''

--French raconteur Bernard Tapie

So here’s the deal: just like there are people who want to Be Like Mike, there are those who wish to emulate The Donald; in 2005 it was announced that Trump University would be formed to help make that possible (the name was trademarked in 2004).

According to the announcement, the University:

“…will offer a rich mix of products and services, including online e-learning courses, multimedia home study programs, and a series of publications. These diverse offerings are geared to a broad range of consumers, from small business owners and entrepreneurs to investors and other professionals looking to advance their careers and to create wealth. Trump University’s innovative, world-class business curriculum will be designed according to the Learning by Doing method. Content will be delivered through interactive learning experiences, including evaluating business plans, simulating real estate purchases, and developing marketing strategies.”

You first meet the “Admissions Office” by either signing up online or by attending one of Trump U’s free one-day seminars—and the Admissions Office is looking to get you to sign up for the $1495 three-day “conference".

If you do, you are, according to those who’ve been there, instructed to immediately increase the credit limits on your credit cards (immediately as in during the next coffee break), so that you might take advantage of the real estate investment opportunities you’re going to be turned on to at the end of the weekend.

But it appears that investment opportunities aren’t what end up being presented to the conference attendees. Instead, they’re being presented with the opportunity to invest in more courses, this time for numbers ranging from $9,500 to $35,000.

If you jump in for the full package, you’re told that it’s “the next best thing to being Trump’s Apprentice”, and, thanks to your personal mentor (you’ll have a year’s access to this service), you’ll be connected to Realtors, contractors, and other investors (a “Power Team”); all this will allow you to become a Real Estate Professional, doing profitable real estate deals, just as Trump does.

You’ll make enough on your very first deal, it is claimed, to pay for the entire $35,000 course.

(There are other courses as well, including one known as the CEO Success Codes, intended to help you “Learn how to run your business The Trump Way”.)

What is the Trump Way, precisely?
Here’s how Stephen Goff, one of the Trump U trainers, lays it out, as described in a Houston Chronicle article:

You find a property worth $200,000, but the owner's willing to take $125,000. Why?” Pause. “Because he's in trouble.”

You put in an offer, even if you don't have the money. Then you sign a contract, giving yourself 60 days to close. The next day, you put an ad in the paper, advertising the $200,000 property for $150,000. You get that money — in cash — before the 60 days is up, and voila: $25,000 profit without putting down a penny of your own money.

The same article quotes an expert who suggests that this strategy:

“…can be done, but it's also just as easy for me to audition for American Idol and become the next Justin Timberlake…”

Fun Fact: in his book “Trump University Real Estate 101: Building Wealth With Real Estate Investments”, Dr. Gary Eldred, the Real Estate Mastery Program “Content Expert” for Trump U, quotes The Donald thusly:

“The worst things in history have happened when people stop thinking for themselves, especially when they allow themselves to be influenced by negative people. That’s what gives rise to dictators. Avoid that error at all costs…

…People who take responsibility have no need to blame others or to be continually finding fault. The naysayers never manage to contribute much and never amount to much either. Don’t join their club. They’re the lowest common denominator.

I knew a guy that I used to call up just to see who and what he would be blaming that day. I don’t think that guy ever thought he had personally made a single mistake in his entire life. From day one, nothing was ever his fault. His biggest blind spot was himself, and, sad to say, he became a total loser because he never thought of the remedy for his biggest failure: himself…” (emphasis is original)

There is a bit more to this story than we have revealed so far: a lot of the information I discovered about the University came from documents related to a lawsuit, filed in 2010 by former students Tarla Makaeff, Brandon Keller, Ed Oberkrom, and Patricia Murphy; that suit is today seeking class-action certification on behalf of all Trump U “students”.

The Plaintiffs allege that Trump U doesn’t live up to its own hype, that Trump is not involved personally, that the expensive seminars offer no real value (a trip to Home Depot to view building supplies is reportedly part of one seminar), and that the mentors and the “Power Teams” either disappear completely after the three-day course ends, or they appear to offer deals that are self-serving and marred by conflicts of interest—and all of that means no “one year apprenticeship”, followed by tons of income every month, which is what the courses seemed to promise in the first place.

(Page 24 of the complaint shows an image of the Trump U homepage, with a picture of The Oddly Haired One next to the words ““Are YOU My Next Apprentice? Prove it to me!”)

There was also a signed letter sent to potential enrollees:

…You can do it, even if you only have five or ten hours a week to spare. With our simple instructions and practice exercises – and ongoing support from your own Trump Team of Experts – you’ll have what you need to succeed!” (Emphasis in original). The letter closes with Donald J. Trump’s name, signature, and at the Trump University address, at 40 Wall Street, 32nd Floor, New York, NY 10005.

It is also alleged that efforts made to obtain promised refunds have come to naught; the refunds are apparently always “just about to be issued”, or the appropriate person is never available to answer the calls that are coming in seeking information about refunds.

Trump University countersued, claiming various forms of defamation; the action is being defended as a SLAPP suit.

(For the record, it’s easy to find Web pages with complaints about Trump U; those complaints, for the most part, mirror those in the lawsuit.)

This whole real-estate hustle turned educational hustle has caused a reaction from the world beyond Trump; that’s something he noted in his Trump U blog:

Recently Gary Trudeau spent a week lampooning Trump University in his comic strip Doonesbury. The basic premise of each strip in the series revolved around the disparity between Trump University and a traditional university. . . .
Trump University has also been mocked in one of Jay Leno’s monologues, in the New York Post’s Page Six cartoon, and probably in a lot of other places.

It’s nice to see that my new venture is making a splash in popular culture.
As they say, no press is bad press. (emphasis is original)

(Doonesbury’s August 8th, 2010 edition is one of those comics which mentions Trump’s “school”.)

The New York State Education Department informed Trump that an educational institution with no degree-granting programs and no differentiated graduate and undergraduate divisions can’t be a University; as a result Trump University is now known as The Trump Entrepreneur Initiative.

(Despite the State’s order, the Trump University name seems to have lived on, however: The Trump Store website, as of the time this was written, still sells “Trump University Audio Books” and “Trump University Books” and “Trump University DVD and Audio Packages”.)

And remember Gary Eldred, Trump’s “Content Expert”? It turns out he has a few credibility problems of his own: he co-hosted a radio show with another expert in running a successful real estate development business, Fredric “Rick” Dryer—and in July of 2008, we found out the secret of how Dryer was able to be so successful.

He was convicted on 44 counts of real estate fraud.

So that’s our story for today: Donald Trump couldn’t wait to trash Barack Obama’s University experience, but Trump has some experience of his own regarding Universities—and from what we can see, when Trump opens a University, unsavory practices and questionable associations and lawsuits and regulatory actions follow in his path.

That’s no way to run a University, and, more to the point, it looks like The Trump Way is no way to run a country—except for maybe Blowhardistan.

On Being A Titan, Part One, Or, See It, Say It, Sue It

Got a simple little story for you today of a multinational corporation that wants to build a great big cement plant in North Carolina really, really, bad, and the local opposition to what appears to be a corrupt and distorted decision process.

Two local activists in particular have drawn the ire of Titan Cement, the Grecian corporation who seeks to build the plant—and because the Company doesn’t like what the activists have been saying about what the impact of that plant will likely be or how the deal’s going down…they’re suing Kayne Darrell and Dr. David Hill, residents of North Carolina’s New Hanover County, and the two folks who are doing the complaining the Company dislike the most.

The Company further claims that they were slandered and defamed by the damaging statements that were uttered by the two at a county commissioners’ meeting and that they have lost goodwill and the chance to do business with certain parties as a result of these statements.

But what if everything the Defendants said was not only true…but provably so—and the Company was, maybe…just looking to shut people up by sending teams of lawyers after them?

As I said, it’s a simple story today—but it’s a good one.

We have tomorrow
Bright before us
Like a flame.

Yesterday, a night-gone thing
A sun-down name.

And dawn today
Broad arch above the road we came.
We march!

--From “The New Negro”, by Alain Locke

So here’s the deal, as it sits today: for a number of years now Titan Cement has been looking to build this great big cement plant near the environmentally sensitive North Carolina coast (part of the site includes 600 acres of “pristine wetlands”), and part of running a cement plant is running cement kilns.

Ya gotta cook limestone, sand, and clay, along with some other ingredients, at very high temperatures (above 2700o F), which sort of fuses everything together; that makes “clinker”, which eventually becomes cement, and that’s why you need giant kilns and, often, pre-heater towers.

You need fuel for those really hot kilns and towers, and our friends at the Army Corps of Engineers advise that, in the kiln fuel game, you can actually kill two birds with one limestone by burning hazardous waste as a substitute for anywhere from 20% to 50% of your original “fuel of choice” (which is often coal).

According to the Corps, you can burn 12 tons of fuel an hour in one kiln, and that means up to six tons of…

byproducts of pharmaceutical, cosmetic, and electronics manufacturers;
solvents and inks used to print newspaper and other publications;
solvents used to recycle paper;
dry-cleaning solvents;
paint thinners and paint residues;
sludge from the petroleum industry;
used motor oil;
agricultural wastes;
and scrap tires.

…might be going into the mix every hour—and as it turns out, that stuff might contain:

…arsenic, cadmium, chromium, lead, nickel, thallium, and zinc.

Now if you’re burning that stuff, it’s either going up the smokestack or out the door as a component of the clinker you just made, and if you live anywhere near this plant, you’re going to be at least a little concerned…and if you have the impression that the people who are trying to get the permits are running a big ol’ hustle to get those permits, you’re going to be even more concerned…and it looks like that’s what’s been going on…and if you put all this together, and you lived in the neighborhood, you might show up at a local County Commissioners’ meeting and say something like this…

“From lawsuits for price fixing and court-ordered mine closures of Titan’s Florida plant, to allegations of corruption coming from Raleigh, to emails raising suspicion whether Titan was ever even considering any other location, which would make incentives completely unnecessary, the clouds of corruption grow dark as new controversies emerge almost daily.”

…or this…

“The bottom line is we know from numerous studies that if we build this thing, more children will get sick, a handful of them will die. We also know from the adult studies that more adults will get sick and quite a few more of them are going to die as well. Which ones? Can’t tell you. That makes it difficult, but there will be some.”

...which are the two utterances which are today at legal issue. (Ms Darrell is being sued for the first statement, Dr. Hill, the second.)

The reason we are all gathered here today is to figure out whether either of those statements are truthful or not…because if the statements are truthful, they cannot be either slanderous or defamatory.

So let’s break it all down, one clause at a time:

Ms. Darrell talked about lawsuits for price fixing, and sure enough, CemWeek (“Global Cement Industry. Knowledge”) ran a story in October of ’09 entitled “Nine US cement companies accused of price fixing”, describing a lawsuit filed for price fixing in which Titan was one of the Defendants.

Court-ordered mine closures? Coffey Burlington, attorneys at law, recount their success with a certain case on their website (Sierra Club v. Army Corps of Engineers, Rinker Group, Tarmac America, Florida Rock Industries, APAC-Florida and Miami-Dade Limestone Products Association), which did in fact result in a court-ordered mine closure of Florida facilities operated by Tarmac America, which is a Titan subsidiary.

Allegations of corruption? How about this, reported in January of 2010 by the Wilmington, NC, StarNews:

A corporation that shares an address and president with a Titan America subsidiary bought a Wilmington office building for more than twice its tax value from Democratic fund-raisers under scrutiny by state and federal prosecutors.

To add to this element of the story, the current Governor, Bev Perdue, has asked the State Bureau of Investigation (SBI) to look into Titan's permitting process, which is something that usually follows allegations, if I recall correctly.

Let’s move on: the folks in the Wilmington, NC, area have a private economic development committee that has negotiated secretly with Titan for some time; the result of that effort was the decision to provide $4.2 million in local government incentives to Titan.

But here’s the thing: if Titan never meant to build anywhere but on that one site, and they still hustled the community for the incentives by using the threat of building somewhere else…well, that’s why Ms. Darrell was talking about:

“…emails raising suspicion whether Titan was ever even considering any other location, which would make incentives completely unnecessary…”

In 2008, Keith Barber, he of Wrightsville Beach Magazine, documented Titan’s multi-decade interest in this particular location:

Titan has made very little effort to conceal the fact it plans to move forward with construction of a cement plant and limestone mining operation on the banks of the Northeast Cape Fear River. In a 2005 interview with Titan CEO Aris Papadopoulos in Cement Americas magazine, Papadopoulos confirmed the Greece-based company had been considering building a plant in Castle Hayne for nearly two decades…

… In addition, even though the permitting process is 18 months to 2 years out, the North Carolina Department of Transportation (NCDOT) Web site reveals that CSX Railroad is already constructing a new spur track at the site of the proposed Carolinas Cement Company.

The Charlotte News & Observer documents the existence of those pesky emails in a January 2010 editorial:

…[Titan lobbyist John] Merritt said he would talk to then-Commerce Secretary Jim Fain. Earlier, he had advised a company spokeswoman on how to respond to questions without raising suspicions that Titan might not qualify for a state grant.

"It is very important that the company not do anything that suggests that this is the only site you are looking at," Merritt e-mailed. And sure enough, in its application for incentives Titan asserted that it was considering sites elsewhere.

Let’s jump in for just a second and take a look at where we are:

Ms. Darrell made this statement…

“From lawsuits for price fixing and court-ordered mine closures of Titan’s Florida plant, to allegations of corruption coming from Raleigh, to emails raising suspicion whether Titan was ever even considering any other location, which would make incentives completely unnecessary, the clouds of corruption grow dark as new controversies emerge almost daily.”

…and based on what we’ve seen so far, every single word of that statement turns out to be absolutely, provably true:

--There was a price-fixing lawsuit.
--There was a court-ordered mine closure of Titan’s Florida plant.
--It’s alleged that something funny was going on with that office building, and North Carolina’s SBI is investigating.
--We did in fact discover that emails exist raising suspicions as to whether Titan was considering any other location.
--And here we are, talking about one of the new controversies that emerge almost daily.

Today’s tale of legal bullying is running pretty long already, and we still have half of the story to go…so let’s take a break for today, and we’ll pick this up by looking at the statement made by Dr. Hill when we get together next time.

In the meantime, if you’re keeping score…I’m thinking that after Round One, it’s Defendants, 1, Titan, 0.