Trump Class Action Says Bogus Deals Impacted Thousands of Investors

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A class action lawsuit filed by former investors accuses President Donald Trump and three of his children of making bogus deals with thousands of individuals that he knew would be worthless.

Four unnamed people, described as two men and two women, say that they are past investors with Trump.

They accuse The Trump Corporation, Donald Trump in his personal capacity, and three of his children; Donald Trump Jr., Eric Trump, and Ivanka Trump, of racketeering and fraud.

According to the Trump class action lawsuit, these fraudulent deals took place over the course of a decade, and affected thousands of people.

“The Trumps conned each of these victims into giving up hundreds or thousands of dollars — that many experienced as devastating and life-altering,” the Trump bogus deal class action lawsuit states.

The investors claim that the Trumps gained significant profits from these allegedly fraudulent ventures, saying that “surely the Trumps dismissed these amounts (and the lives they wrecked) as trivial. But by defrauding so many for so long, the Trumps made millions.”

With the midterm elections just a week away, some wonder if the timing of the Trump fraudulent deals class action lawsuit makes it just an attempt to influence voters.

The plaintiffs’ attorneys told Law360 that this is not the case, saying that “this case is being brought now because it is ready now. We did a thorough investigation and a lot of legal research, and the plaintiffs are eager to file. And the sooner we file, the more victims get justice.”

The lawyers describe the Trumps’ alleged deception of investors as “systematic fraud,” and emphasize the allegedly wide extent of the bogus deals.

The Trump business deals class action lawsuit claims that many fraudulent deals were made in relationship to a business called ACN, which the investors claim is a multilevel marketing scheme. Allegedly, the company offered a business opportunity to people who participate in the scheme.

According to the Trump business deals class action lawsuit, Trump told ACN investors that they “have a great opportunity before you,” and was endorsing the business opportunity “not for any money.”

However, the Trumps and the company allegedly were secretly paid millions of dollars between 2005 and 2015 to promote ACN.

According to the Trump class action lawsuit, “not a word” of Trump’s claims that ACN was a great business opportunity, or that he was endorsing the company without benefit to himself, was true.

The investors claim that the Trumps used their brand’s association with affluence and business success to dupe investors into thinking that they were being presented with valuable and lucrative business opportunities.

Allegedly, the Trumps’ deceptions were “a series of false and misleading statements and omissions” used to convince investors into entering into business agreements.

The plaintiffs are represented by Robert A. Kaplan, John C. Quinn, Joshua Matz and Alexander J. Rodney of Kaplan Hecker & Fink LLP and Andrew G. Celli Jr., Matthew D. Brinckerhoff, O. Andrew F. Wilson and Katherine Rosenfeld of Emery Celli Brinckerhoff & Abady LLP.

The Trump Fraudulent Business Deal Class Action Lawsuit is Jane Doe, et al. v. The Trump Corporation, et al., Case No. 1:18-cv-09936, in the U.S. District Court for the Southern District of New York.

UPDATE: On Dec. 20, 2018, a federal judge overseeing the Trump fraud class action lawsuit says the accusers have a right to privacy at this point in time because of the high risk of threats if their individual names were revealed to the public.

UPDATE 2: On Jan. 14, 2019, victims of an alleged fraudulent business deal orchestrated by President Trump and his children are facing a motion to dismiss their class action lawsuit.

UPDATE 3: On July 24, 2019, a federal judge has decided that President Donald Trump and three of his children should face some charges by a putative Class who say that they were bilked out of money when they invested in what turned out to be a fraudulent marketing scheme.