Greg Abbott Got $35K Donation From Trump After Probe Of His 'University' Quietly Dropped: Report [UPDATED]

AUSTIN, TX -- The now-defunct Trump University tried to set up a Texas campus before being allowed to quietly shut its doors by former attorney general Greg Abbott, who then got a generous donation for his ultimately successful campaign for governor from the billionaire, according to a published report.

In a report filed Thursday, the Associated Press found that Abbott opened a civil investigation into “possibly deceptive trade practices” when Trump University made inroads in Texas. Abbott, a Republican, was then serving as attorney general for Texas but with his sights set on the governorship.

“Abbott’s probe was quietly dropped in 2010 when Trump University agreed to end its operations in Texas,” the AP reported. “Trump subsequently donated $35,000 to Abbott’s successful gubernatorial campaign, according to records.”

Abbott succeeded Rick Perry, the state's longest-running governor who made an unsuccessful bid for the presidency in 2012. Abbott bested his Democratic rival for governor, State Sen. Wendy Davis in a largely Republican state.

The AP reached out to Abbott’s office for comment about his handling of Trump University investigation in Texas -- and the subsequent sizable donation after the probe was quietly dropped -- but Abbott has yet to call the news organization back with an explanation.

On Friday afternoon, he responded simply by labeling the AP story as "bogus." He added that other media organizations following up on the story "tank" the journalistic profession. But Abbott didn't address the veracity of the claim that Trump donated $35,000 after his investigation into Trump University was dropped.

Despite Abbott's denial, sites that track political donations verify the AP's claim. A check by Patch of the website followthemoney.org, run by the National Institute on Money in State Politics, shows two donations were made to Abbot by Trump totaling $35,000 in the 2014 election cycle -- the year Abbott ran for governor.

As for the timeline between the state probe of Trump University and the donation, other media outlets have verified the chronology.

A former deputy chief of Abbott's consumer protection division, John Owens, told the Texas Tribune his superiors rejected a request to sue Trump University for illegal business practices. A memo dated May 11, 2010, provided to the Tribune shows Owens and his colleagues had sought a $5.4 million settlement from Trump University officials.

"It was swept under the rug, and the consumers were left with no one to go to bat for them," Owens told The Texas Tribune.

Abbott spokesman Matt Hirsch said the fact Trump University never did open its doors in Texas validates the claim that consumers in Texas ultimately were protected: "The Texas Attorney General's office investigated Trump U, and its demands were met — Trump U was forced out of Texas and consumers were protected," Hirsch told the Tribune.

Late Friday, the current attorney general, Ken Paxton, issued Owens a cease and desist order -- essentially demanding he stop talking about the case to media outlets. Owens was quoted extensively in the Tribune piece and other media outlets.

"Texas Attorney General Ken Paxton’s office, out of concern over the release of confidential and privileged information belonging to the Office of the Attorney General, today sent a Cease and Desist letter to John W. Owens of Houston," reads a press advisory sent to Patch.

The letter identifies at least six violations of conduct that Mr. Owens may have committed by divulging confidential and privileged information, state officials noted.

“Current and former Assistant Attorneys General have a duty to follow all rules related to the practice of law in the state of Texas,” said First Assistant Attorney General Jeff Mateer. “While everyone has First Amendment rights to free speech, the law strictly prohibits attorneys from releasing confidential and privileged information.”

To read the full cease-and-desist letter, click here.

Trump’s “university,” which was never an accredited institution of higher learning, has come under scrutiny since a federal judge hearing a case centered on a lawsuit against the enterprise allowed the release of formerly sealed internal documents.

The documents represent a playbook of sorts instructing sales people how to aggressively extract money from prospective students interested in learning Trump strategies in acquiring wealth.

Many of those who shelled out tens of thousands of dollars for offered courses filed a class-action suit complaining Trump University didn’t live up to its wealth-building claims but instead amounted to a predatory marketing scheme disguised as a for-profit educational venture.

The trial in the case is scheduled for after the November presidential election.

Read the full story at Associated Press >>

Pictured: Gov. Greg Abbott