What Happens When Your For-Profit School is Without a License?
We don’t wade into public controversies, we haven’t researched this particular issue, and we have nothing – neither positive nor negative – to say about Donald Trump. However, this licensing incident does highlight an important message that we’ve spent years trying to promulgate. When you get smacked with a noncompliance charge, the damage to your brand can significantly outweigh the monetary costs to your balance sheet.
“Donald Trump is personally liable for operating a for-profit investment school without the required license, a New York judge ruled in a lawsuit brought by the New York Attorney General against the real estate entrepreneur.
New York state Supreme Court Justice Cynthia S. Kern said he was notified by the state in 2005 that his Trump Entrepreneur Initiative - known as Trump University until 2010 - was in violation of state education law."
“Damages will be determined later, “ the article goes on to say. Well yes, but this headline (“New York judge finds Donald Trump liable for unlicensed school”) has been picked up by news outlets across the globe. Damages aside, it’s fair to say that the harm to Donald Trump’s reputation has already been signed, sealed, and delivered.