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How was his college fraud? If I go to Harvard and don't get a great job, does that mean Harvard is a fraud?
It was fraud because it was advertised as offering instruction straight from Trump's own knowledge and experience. The ad said that Trump had “hand-picked” Trump University’s instructors, but the fact is that the instructors were not hand picked by him, he didn't know them, and the students paid tens of thousands of dollars on a classic bait and switch scheme in which they learned none of the lessons they were told they would receive.
It's absolutely no different than if I advertised that you would learn painting from artists trained and selected by me, but I end up hiring completely random art instructors and you learned nothing of what I know. Under such a scenario it's ludicrous that I wouldn't be sued eight ways to Sunday.