The federal investigation into potential bank fraud by Jane Sanders, wife of Sen. Bernie Sanders, I-VT, while she was president of Burlington College has expanded in recent weeks.
According to the Washington Post, federal prosecutors confirmed last week they began presenting evidence against Sanders before a grand jury. In April, a federal probe initiated last year was publicly confirmed after federal prosecutors sought preservation of the college’s records, according to VTdigger.com.
The probe revolves around the securement of a $6.7 million bank loan in 2010 to finance a land deal to expand the college’s campus.
Jane Sanders was president of the college from 2004 to 2011 and sought to expand enrollment numbers for the school. Sanders worked to purchase waterfront property owned by the local Roman Catholic diocese, a move that would cost around $10 million.
Sanders allegedly overstated “firm” donation amounts in order to secure the loan from the bank.
In the 2010 loan application, Sanders said the college had $2.6 million in “confirmed” donations and anticipated an additional $2.27 million in donations.
However, according to a former trustee, the college only raised $125,000 by the summer of 2011. In one instance, the college listed a $1 million donation as secured from a prominent Burlington resident even though she only agreed to donate the money upon her death.
Sanders resigned in October 2011 under mounting pressure from the board of trustees and allegations that she provided inaccurate information. The college, which enrolled 160 students, struggled with the financial repercussions of the deal and closed in May 2016.
Brady Toensing, former Vermont state chairman for Donald Trump’s presidential campaign, initiated the Sanders investigation in early 2016 by contacting the U.S. Attorney’s Office. The FBI conducted investigations throughout 2016 and publicly acknowledged the investigation in late April.
Both the Vermont Educational and Health Buildings Financing Agency and Vermont Agency of Education have been investigated for their records relating to Burlington College.
Sanders and his allies have stated Jane was working in the best interests of the college and decried the investigation as politically motivated in the lead-up to the presidential election.
