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5-RevisedRevised #5 1 RESOLUTION NO. -------- 2 3 A Resolution calling upon Florida Attorney General Pam Bondi to reopen 4 the investigation into the Trump Institute and any affiliated entities and 5 individuals, appoint independent special counsel, and join the lawsuit filed 6 by the State of New York. 7 8 WHEREAS, on August 25, 2013, the Attorney General of the State of New York, Eric 9 Schneiderman, announced that he has filed a lawsuit against Donald Trump, The Trump 10 Entrepreneur Institute --formerly named Trump University LLC ("Trump University"), and 11 Michael Sexton, former President of Trump University for engaging in persistent fraudulent, 12 illegal and deceptive conduct in connection with the operation of Trump University; and 13 14 WHEREAS, the wrongdoings are detailed in Attorney General Eric Schneiderman's 15 press release dated August 25,2013, attached as an exhibit to this resolution; and 16 17 WHEREAS, in an April 29, 2016 article in the Orlando Sentinel, Democrats have 18 scolded Florida Attorney General Pam Bondi for not doing more to help the case against Trump 19 University, since she has joined lawsuits brought by other states, including actions against the 20 Affordable Care Act and a ruling allowing the Environmental Protection Agency to enforce a 21 cleanup plan for Chesapeake Bay; and 22 23 WHEREAS, the Washington Post reported on March 22,2016, that Trump campaign 24 aides admitted that one ofMr. Trump's charities made a donation to Florida Attorney General 25 Pam Bondi's campaign; and 26 27 WHEREAS, when asked whether Mrs. Bondi planned to give back the $25,000 28 donation or give it to charity, Bondi spokesperson Whitney Ray referred a reporter to Bondi 29 campaign aides, who apparently did not respond, according to the Orlando Sentinel article; and 30 31 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY 32 COMMISSIONERS OF THE CITY OF SOUTH MIAMI, FLORIDA: 33 34 Section l. The City Commission hereby calls upon Florida Attorney General Pam Bondi 35 to reopen the investigation into the Trump Institute, and any affiliated entities and individuals, 36 join the case filed by the Attorney General of the State of New York against Donald Trump, 37 The Trump Entrepreneur Institute --formerly named Trump University LLC ("Trump 38 University"), and Michael Sexton, former President of Trump University, and appoint 39 independent counsel to pursue the case. 40 41 Section 2. The City Commission does further direct the City Clerk to send copies of this 42 Resolution to the Governor, his Cabinet, and all members of the Florida Legislature. 43 44 Section 3. Severability. If any section clause, sentence, or phrase of this resolution is 45 for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding 46 shall not affect the validity of the remaining portions of this resolution. Page 1 of2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Revised #5 Section 4. Effective Date. This resolution shall become effective immediately upon adoption by vote of the City Commission. PASSED AND ADOPTED this __ day of _____ , 2016. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY Page 20[2 APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Welsh: Commissioner Harris: Commissioner Edmond: Commissioner Liebman: 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast 1 Veggie That Kills High Blood Pressure Learn the 1 weird ingredient from the grocery store that stops high blood pressure dead in its tracks. Click Here To Learn More ~-.- bloodpressuresolution.com GET RICH TO THIS 04.07.161:00 AM ET ~ Trump's Get Rich Seminar Partnered With Couple ~ POLIT~:O~:~~~~~Tfo~~~~u~.s. NEWS TECH + HEALTH BEASTSTYLE VIDEO mmJ o o G o "lIvll III~ LJUIIUIU "LUI LloU IIIJ WWvUHl1 .;>\.tIIlIlIUI"" II~ LUIII\.iU tV U .... UUplv nlUI y ,",11~"'ru.il':;U legal past. Donald Trump nceded some help in 2006. He was setting up Trump Institute, a series of seminars teaching the "way to wealth," and was looking for expertise on hml" the conference business worked. He turned to a pair with a troublesome legal history to gh'e him a hand. Mike and Irene Milin were known to In\\' enforcement officials in a number of states for a host of get-rich-quick schemes and alleged real estate scams. TIley were prosecuted by the Texas attorney general for deceptive trade practices, and sued by the makers of Lifestyles of the Rich and Famous, to name just two of the Milins' many legal entanglements. But Michael Sexton-then president of Trump University, which hc said at the time included the Trump Institute seminars, as well as online courses-partnered with the Milins nonetheless, according to a repOlt from The Sacramento BpC'. The Milins' oft-im'estigated Nntional Grants Conferences, in effect, became the blueprint for Trump Institute. The two seminal' businesses used some of the same spenkers and shared office space in Boca Raton, Florida. The ll.ds. for Trump University promised to http.!lwww.thedailybeast.com/articles/2016104107/these-grifters-inspired-trump-institute.html 1/7 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast make people "millionaires," just as the National Grants Conference commercials told customers they'd make them rich from government money. And, most importantly, Trump Institute operated itself in much the same manner as National Grants Conferences: After a promise of easy riches and a free seminar, customers were cajoled into doling out more and more money to get the key to unlocking wealth. The prohlem in both cases: The key never opened anything. The IVlilins launched National Grants Conferences in 1998, promising customers lucratiw grants from the goYernment, which they could not fulfill. Before that, the couple basically got run out of each state in "'hidl they set up a different iteration of the same shady practice. Similarly, Trump Institute promised to make people into sav\'}' real estate investors. thanks to ad\ice from The Donald himself. The customers newr met the straw- haired impresario, however. They only got to see a cardboard cutout of his likeness. II \\";n j]1 1\ ;1 :li;dd Ti'!;:lll"~ :;(ll'! !_ ,ll!\l \)!Cil! ji1'~ l~ I, ~~h.lpIH:-.', i') NGC went bankrupt just 1\\'0 years after the pat1nership began, after being dogged by a major complaint from 34 attorneys general across the United States. Trump University would also earn a reputation as a fraud operation and hoth New York State and former students haye brought charges against the Republican frontrunner as a result. And he's not shaking those charges an:\1ime soon; Trump may have to testify in cOUJ1 this summer in the ch'il suit brought b)' his unhappy students, \\'hile he would otherwise be trying to consolidate his grip on the Republican nomination. The GOP frontrunner has staked his Jlolitical brand on his commercial acumen. But hltpllwww.thedailybeasl.com/articles/2016/Q4/07/these-grifters-inspired-trump-institute.html 217 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast Trump's relationship I,ith the Milins calls into question that business judgment, while adding to the stink surrounding Trump University. It's unclear why Trump linked up with a pair \\ith such a long history of legal trouble in the first place. While Trump's current camp denies any and all involvement, the ties bet\,'een the organizations are clear. NGC's audience was the infomercial circuit. running long, nashy ads to entice new customers. Triumphant horns played over a gold backdrop as word.~ careened in from off screen. 'The secrets of how you can get gm'ernment grants, loans and subsidies," the grainy title card promised hefore a nearly six-minute video presented by NGC began. The Milins peered into the camera readying themselves to promise riches to the masses. It's one of the only images al'ailable online of the couple, who in the near-decade since this was filmed have retreated into quiet seclusion in their Boca Raton home, less than 30 miles from Donald Trump's Palm Beach palace, Mar-a-Lago. National Grants Conferences claimed that it could offer customers hundreds of billions of dollars in "free" gOl'ernment grants and loans. Following previous models the Milins del'eloped, the program would prr)\i.de one free seminar, after which indi,iduals were encouraged to pay $999 for access to this information about grants, I"hich amounted to a series ofhrochures and counselors who promised to help people get money. GET THE BEAST IN YOUR INBOX! Entel \lour email addrc£5 By cliCKing "Subsclibe," you agree to have read the Terms of Use and Privacy Poli'V It \lill not shock ~'ou that the operation wasn't exactly above hoard. Grants.go\' lays out the criteria for getting this kind ofmone~'. which often goes to gon:rnment organizations and nonprofits. It explicitl~' ,,'arns against "late night infomercials" promising "millions in free money." Mike Milin began his career as a salesman in the mid-198os for the notorious get-rich- quick scheme artist Tony Hoffman, who was famous for wearing dollar sign-shaped rings and driving a brown limousine with a license plate reading "NEGOT8R." When Hoffman's company "National Superstar Inc." went bankrupt in 1986, Milin and his ,~ife, Irene, began to run their own seminar programs, using an infomercial hosted by Robin Leach of Lifestyles oJ the Rich and Famous to advertise their products. According to a 1987 article in the Los Angeles Times, the half-hour infomercial called "Two Years to Financial Freedom" gave the appearance that the couple was actually featured on the Leach-hosted show. In fact, Leach was merely hired for the day, along with a rented RollS-Royce and a jet. The owners of the original program Lifestyles oJthe Rich and Famous later successfully sued the Milins for cop~i.ng their brand, forcing the couple to alter the infomercial to keep it on the air. In the ,ideo, Milin claims that he became a banking expert after writing his master's thesis at the University of California, Berkeley, focusing on hanking and sociology. He also alleges that he turned to real estate im'csting as a result of being laid off as a sociology http/lwww.thedailybeasLcom/articles/2016/04/07/these-grifters-inspired-trump-institute.html 3/7 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast professor at the university where he taught after graduating. According to the Times article, Berkeley's office of admissions had no record of Milin attending or teaching at the university. And Kathleen Maclay. of Berkeley's Media Relations department, told The Daily Beast "\I'e have no student records for a Michael Milin." The next mme for the scamming couple was a Texas-based company called Information Seminars International, for which they lI'ere also sued-this time by the Texas attorney general in 1993-who found them liable for decepth'e trade practices. The Milins' program promised that if customers paid $499 for what they referred to as the "Milin Method," the company would turn around and help them re-sell real cstate at government auctions. This was basicall)· the same mcthod they would usc in their partnership lIith Trump. Then-Texas Assistant Attorney General Bruce Griffiths allegcd that thc couple made $30 million annually off this schcme and that when customers tried to reach anyone associated \'11th the company by phone, no one would pick up. In a settlement that the couple signed that year. they and thcir partners werc permanently barred from claiming that they had becomc wealthy from real estate. The Milins also agreed to use full names in any testimonials-though the brochures later distributed by NGC in the mid-2000s did not. In 2006, the year that Trump joined forces with the now-bankrupt company, the Milins were accused ohiolating Vermont's Consumer Fraud Act b)' William Sorrell, the state attorney general at the time. Sorrell called National Grants Conferences "unconscionable and illegal" in public documents ofthe allegations re'1ewed by The Daily Beast. The company was ordered to pay $65,000 in legal fees and an additional nearly $325,000 to customers. Less than a year later, 34 state attorneys general "Tote a letter to the Federal Trade Commission calling out the company for "deceptive advertising." In 2010, then-Texas Attorney General Greg Abbott took legal action against the company as well, resulting in them being unable to adwrtise as ther had done so in the state. A source ,\'110 pre,iously worked with the Milins at NGC confirmed Trump's involvement \\1th the accused real estate scammers. And a lawrer invoh'ed in legal proceedings against the Milins also said the Trump and Milin operations were linked. The Milins loaned out some of their staffers to actually deli"er seminars for Trump Institute, which ha"e been described as live-action real estate infomercials. At the initial free seminars, attendees were allegedly encouraged to pay nearly $1,500 to go to another three-day conference, where Trump lI'as promised to appear and gi,'c his personal advice. But if he ever came, e,idence of it doesn't appear to ha\'e been reported anywhere publicly. In two instances cited in a Ne,,, York lall'suit im'ohing Trump University-the umbrella organization for Trump Institute and other "educational" offerings-individuals said that all they received were cardboard cutouts of Trump, rather than personal ,isits. They were offered access to the "Gold Elite Program" for the price of $34,995, ",hich was littered httpl/www.thedailybeast.com/articles/2016/04/07/these-grifters-inspired-trump-institute.htm I 417 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast v.ith more empty promises. It is unclear what if any direct contact Trump himself had with the Milins, but according to a 2006 report, NGC and the Trump Institute shared at least three of the same owners and a joint Boca Raton address. Yet Alan Garten, current executive vice president and general counsel for the Trump Organization, denied a number oftimes to The Daily Beast that Trump had an~' prior business with the Milins. "Neither Mr. Trump nor any of his companies ever worked \"ith or were associated \\ith NGC," Gmten emailed. When sent the 2006 article referencing their business deal, Garten once again said "Untrue. Neyer partnered or associated \\ith NGC." When asked a third time, he responded "simply not accurate." But Michael Sexton, the prcsident of Trump's now-defunct Trump Unh'Cfsity, stated in 2006. according to 17lc Sac1'amento Bee's story, that NGC was selected to partner \\ith them because they were "the best in the business." The Milins thcmseh'cs did not rcspond to multiple calls and cmails from The Daily Beast. "I don't know hoI\' to describe Mike. He was an egomaniac, not very smart, insecure guy who struck lightning in a bottle," a source who worked at NGC, and \\ished not to be named, told The Daily Beast. He confirmed that NGC was using its OIm infrastructure- staffers and office space-to help run Trump's fledgling education operation. Hesitant to even speak the Milins' name aloud, the source said, ''They "'anted the big house and the fancy car and could giyc a shiL" Nolan Apostle, a 55-year-old small-business owner in San Francisco, said he learned this the hard way. "They should definitely be in jail. They should definitely pay the consequences," Apostle told The Daily Beast about the Milins. He paid the $999 at a seminar in California in the late '90S and didn't rel:eive all the materials he \yas promised. After half a dozen attempts to reach people affiliated \vith the company, Apostle didn't get his money back. "They said, 'We'll get back to you.' Of course they didn't call." he said. Apostle says he spoke to nearly 200 customers about their experiences with the company and not a single person got what they were promised. "I honestly-I'\'e neyer met or spoken to anybody that actually got a grant through their system." Ed Magedson. who runs RipoffReport.com, shared a number of em ails \\ith The Daily Beast in which customers used his sel'lices to help them get indilidual refunds from NGC when they didn't get the products they were promised. His site is full of these complaints about the company. By the time that NGC filed for Chapter 11 bankruptcy in 2008, they owed 52.1 million to 20 of their creditors, most of which was recovered by Scott N. Schreiber, a Chicago-based http/lwww.thedailybeast.com/articles/2016/04/07/these-grifiers-inspired-trump-institute.html 5/7 6/7/2016 Trump's Get Rich Seminar Partnered With Couple Prosecuted for Fraud -The Daily Beast lawyer. "It was a typical take the customers' money, giw them a cheap introduction class, try to get them an upsell [scheme]," Schreiber said describing NGC to The Daily Beast. He said the company prm-ided "no value for its customers" and that tbe Iv1ilins had committed fraud. The couple also has an outstanding lawsuit filed in Palm Beach County court alleging the Milins defaulted on a commercial property lease. The court has not responded to an inquiry from The Daily Beast about the status ofthis litigation. It's unclear when, or if, the Milins and Trump parted ,,-a!'s but Trump University largely ccased operations by 2011. Two years later. New York State filed a S40 million lawsuit against Trump Uniwrsity alleging illegal practices and false claims. A year later, a separate class-action civil suit was filed in San Diego, in\'olving claimants from California, Florida, and New York. The lawsuits are still pending and Trump's attorneys have expressed interest in postponing fmther litigation until after the presidential election. The plaintiffs are seeking to go to trial over the summer. After their business crashed and burned, the Milins later got politically involved, hosting a fundraiser for Mitt Romney in Boca Raton, shortly after his disastrous "47 percent" comment. They haw contributed considerable amounts of money to political candidates, but surprisingly none to Donald Trump this cycle. Marco Rubio, however, received a $1,500 check from Irene Milin as recently as Feb. 29, according to Federal Election Commission filings. Why Trump, who at the time had an internationally recognized real estate brand and a reality tel elision ShOI\-, would allegedly team up \lith a ubiquitously known snake oil salesman is anyone's guess. But for a former associate ofthe Milins, the answer was simple. "It was all about the money. Like all the other deals." PROMOTED STORIES How can we use big data to improve patient outcomes? I ,,><~J Ir .. ~ How To Turbo Through Credit Card Debt With A Powerful 2 Step Method BETTERWORKINGWORLD.EY.CI!lUJINGTREE What Donald Trump Has Been Hiding About His Wife Melania UBERHAVOC Should Sites Like This Be Banned? TRUTHFINDER Forget Yoga Pants. These Are What You Should Be Wearing This Summer. 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You know ... the one born in Indiana. I Bloomberg Politics, which broke the story, reported that has-beens like former Arizona Gov. Jan Brewer and former Massachusetts were on the line as Trump went off (again) on U.S. District Judge Gonzalo Curiel and told his supporters to follow his incendiary Ie should demonize the judge and call any reporter who questioned the strategy a racist. Nobody much cared what private citizens like Brewer and Brown might be up to. But Floridians could only cringe when another of conference call surrogates was identified. Pam Bondi, supposedly, works for us. Our state's chief legal officer was party to a diatribe that conservative legal scholars criticized as contemptuous of American jurispn Republican political leaders decried as outright racist. Apparently, Florida's attorney general listened without offering a word of pro It gets worse. Trump has been railing that Judge Curiel shouldn't be allowed to preside over a civil fraud suit against Trump Univer the judge's Mexican heritage. (Because, according to his convoluted reasoning, Trump intends to build that wall along the Mexican The conference call occurred on Monday. That same day, an investigative AP report revealed that back in 2013, even as the attorn r. _!'I~~:~~_. J . . --~-.:..:~-.:.......:....~..::..--=--- Chattanooga ~ Black was receiving angry complaints from Floridians claiming they had been defrauded by Trump's faux university and not long after her ornce mnmalea Florida might join New York's $40 million lawsuit against Trump University, Bondi had "personally solicited" a campaign contribution from Trump. AFTER A $25,000 CAMPAIGN CONTRIBUTION. BONDI'S OFFICE LOST INTEREST IN FRAUD COMPLAINTS AGAINST TRUMP UNIVERSITY It gets even worse. After a Bondi campaign committee received a $25,000 check from the Trump Foundation, the attorney general's office dropped its inquiry into Trump U. (In a call to the Miami Herald/Tampa Bay Times bureau Tuesday, Bondi protested that her office had never opened a formal investigation.) And worse still. The donation -from Trump's Section SOl©(3) charitable foundation -was illegal. And never reported to the IRS. Tax-exempt charitable foundations are prohibited from engaging in political activity. That's for Trump and the IRS to work out. But how the hell could a prohibited transgression like that go unremarked for nearly three years by its recipient, Florida's chief legal officer> How was it that the vety attorney general failed to check the provenance of her $25,000 donation? Which only adds another sleazy chapter to Bondi's history of bent ethics. In 2014, The New York Times reported that a Washington lobbying firm specializing in influencing state attorneys general had lavished considerable attention on Bondi, showering her with gifts, exotic junkets and campaign contributions. Meanwhile the Florida Attorney General's Office lost interest in pursuing fraud allegations dogging the firm's various clients. Despite the ethical conflicts, Bondi is scheduled to appear with Trump at a campaign rally in Tampa Saturday. When Donald Trump buys himself an attorney general, he gets his money's worth. Fred Grimm: fgrimm@miamiherald.com, @grimm_fred RELATED CONTENT Boston lawyer's donation accusations badger Bondi Pam Bondi 'devastated' by questions raised about Donald Trump's $25,000 donation Who kissed Donald Trump's rear' Florida Attorney General Pam Bondi, AP reports MORE FRED GRIMM COMMENTS 29 Comments Bristol-White