The Justice Department is investigating a now-defunct Burlington College in Vermont used to be run by the wife of Sen. Bernie Sanders over possible fraudulent acquisition of almost $7 million in tax-exempt bonds.
While serving as the school’s president, Jane O’Meara Sanders allegedly overstated pledged donations while applying for a loan.
Sanders’ aggressive expansion and fundraising effort was intended for tiny Burlington College to purchase its former North Avenue campus.
The college needed to take on a $10 million loan to finance the acquisition of a new campus.
With the expansion, it would have more than doubled the school’s enrollment from about 200 full-time students to more than 400.
Sanders, who was the Burlington College president from 2004 until 2011, was forced out when the school’s fortunes changed for the worse after she orchestrated a deal with the state finance agency to grant the school $6.7 million in tax-exempt bonds.
The Daily Caller reports:
Burlington College did not receive anything close to $2.6 million in donations. In fact, from 2010 to 2014, the school only received $676,000 in donations, according to The Vermont Journalism Trust.
Sanders has denied any implications of wrongdoing, telling The Daily Caller News Foundation that the school gave the state finance agency “very clear indications of what money was in hand, what money was expected, what money was absolutely not able to be revoked.”
“So I don’t know what to tell you,” she said.
In January 2016, Brady Toensing, a Republican attorney, formally requested that the Justice Department investigate Burlington College.
The Justice Department and the FBI have refused to provide details about the investigation.