Federal Investigators Are Reviewing Whether Jane O'Meara Sanders Fraudulently Obtained Loans For A Land Purchase As President Of Burlington College -And Whether Bernie's Senate Office Greased The Wheels



TOP TAKEAWAYS

An associate of Senator Bernie Sanders' (I-VT) has confirmed that there is an investigation into a $10 million land deal orchestrated by Sen. Sanders' wife while she was the president of Burlington College, which has resulted in the couple retaining a prominent Washington, D.C. litigator who handles criminal matters.

Jane Sanders allegedly committed fraud in obtaining bank loans by misrepresenting the amount of confirmed pledges the school had secured to back a loan.

Sen. Bernie Sanders allegedly used his official Senate office to influence the granting of the loans in question for his wife.

A donor has confirmed that her pledge was misrepresented and that she has been interviewed by federal investigators.

After the wife of a self-avowed socialist over-promised, under-delivered, and in the process spent more money than what was sustainable, the college was forced to close its doors; and some have attributed the closure as a direct result of Sanders' $10 million land deal.

After reckless financial investments caused a financial crisis at Burlington College, then-President Jane Sanders received a $200,000 golden parachute, which was several hundred thousand dollars less that what the college paid to a company run by Jane Sanders' daughter during Jane's tenure.

SENATOR SANDERS AND HIS WIFE HAVE RETAINED LEGAL COUNSEL AS FEDERAL INVESTIGATORS REVIEW A LAND PURCHASE, BUT HE HAS DODGED QUESTIONS ON THE MATTER

Sen. Bernie Sanders And Jane Sanders Have Retained A High-Profile Washington D.C. Criminal Defense Attorney

Sen. Bernie Sanders' Wife, Jane Sanders, Is Facing Allegations That She Committed Fraud In Obtaining Bank Loans For Burlington College And Used Her Husband's Influence To Receive The Loans. "Sanders is used to fielding softball questions from an adoring local press, but his inquisitor, Kyle Midura of Burlington TV station WCAX, had a rare opportunity to put him on the spot. Investigative reporters had been breaking stories about a federal investigation into allegations that the senator's wife, Jane Sanders, had committed fraud in obtaining bank loans for the now defunct Burlington College, and that Sanders's Senate office had weighed in." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Sanders And His Wife Have Retained Defense Attorney Larry Robbins Who Has Represented Politicians, Including Former Rep. Bill Jefferson. "Now, Senator Sanders and his wife are taking the case more seriously. Jeff Weaver, Sanders' longtime top political adviser who heads Sanders' political organization, Our Revolution, confirms to Politico Magazine that Bernie and Jane Sanders have lawyered up. The couple has retained Rich Cassidy, a well-connected Burlington attorney and Sanders devotee, and Larry Robbins, the renowned Washington-based defense attorney who has represented I. Lewis 'Scooter' Libby and disgraced former Rep. Bill Jefferson, to represent Jane Sanders in the matter." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Robbins Is A Trial Attorney And Handles Criminal Litigation, As Well As Complex Civil Litigation. "Lawrence S. Robbins is a trial and appellate litigator who handles both criminal and complex civil litigation." ("Attorneys," Robbins Russell , Accessed 6/27/17)

A Sanders Associate Confirmed The Existence Of A Federal Investigation. "Weaver confirmed the existence of the federal investigation but predicted nothing would come of it. He said it only made sense that the Sanderses had hired an attorney, but they had not been contacted by investigators. 'Are you supposed to wait for (U.S. Attorney General) Jeff Sessions to knock on your front door before you talk to a lawyer?' he said in a statement." (Wilson Ring, "Feds Looking Into Bernie Sanders' Wife Over Real Estate Deal," The Associated Press , 6/26/17)

It Is Alleged That Jane Sanders Misrepresented Confirmed Contributions And Grants To The College To Obtain A Loan. "In January 2016, Toensing filed a complaint with the Vermont office of the U.S. attorney and the Federal Deposit Insurance Corp. He alleged a loan used by the college to buy the land 'involved the overstatement and misrepresentation of nearly $2 million ... in what were purported to be confirmed contributions and grants to the college.' In a follow-up letter in May 2016, Toensing, who in the past has filed complaints against Democrats and members of Vermont's Progressive Party, said that as a result of his original complaint he was 'approached and informed that Senator Bernard Sanders's office improperly pressured' the bank to approve the loan." (Wilson Ring, "Feds Looking Into Bernie Sanders' Wife Over Real Estate Deal," The Associated Press , 6/26/17)

The FBI Began Investigating At Burlington College And Collected Evidence And Interviewing Individuals. "Beyond the glare, federal investigators and FBI agents started to pull apart the $10 million financial arrangement. They showed up at Burlington College to sift through hard drives, audit reports and spreadsheets. They began to interview donors, board members and past president Carol Moore. 'I was contacted and spoke with an FBI agent numerous times last spring, again last summer,' Moore told Vermont Public Radio in May 2017, 'and recently, maybe a month ago.'" (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

The FBI May Also Be Reviewing Allegations That Sanders Tried To Influence The Granting Of Loans For His Wife. "A second letter to federal prosecutors in early 2016 alleged that Senator Sanders' office had pressured the bank to approve the loan application submitted by Jane Sanders. 'Improper pressure by a United States Senator is a serious ethical violation,' the letter asserted. Again, Sanders avoided publicly commenting on the charges. That strategy seems to have run its course. The federal investigation has been going on for a year and a half. As recently as April, federal investigators were reviewing records and interviewing participants, according to email traffic and former Burlington College board members who have been contacted by FBI agents. The FBI, it seems, is looking into exactly what Jane Sanders did or didn't do-and whether her husband Bernie, hero of the progressive left, tried to ease along one of the loans." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Sen. Sanders Has Dodged Questions Regarding The Investigation

At A Press Conference, Sen. Sanders Dodged Questions Regarding The Investigation. "Asked about the allegations Monday at a Washington press conference on expanding community health centers, Sanders sought to keep the questions on health care. 'No, that's not what I'm talking about today,' Sanders said when an Associated Press reporter attempted to ask him about the FBI's investigation." (Wilson Ring, "Feds Looking Into Bernie Sanders' Wife Over Real Estate Deal," The Associated Press , 6/26/17)

Sen. Sanders Told Burlington's WCAX That The Investigation Is "Nonsense." "It is nonsense…it would be improper at this point for me to say anything more." ("Sanders Weighs In On Burlington College Investigation," WCAX [Burlington] , 5/5/17)

AS PRESIDENT OF BURLINGTON COLLEGE, JANE SANDERS CRAFTED A LAND PURCHASE, WHICH IS NOW THE FOCUS OF FEDERAL INVESTIGATORS

Jane Sanders Was Hired To Turn The School Around And Increase Enrollment And Revenue

In 2004, Jane Sanders Became President Of Burlington College After Serving As Sanders' Chief Of Staff In Congress. "While he was mayor, Jane Sanders directed Burlington's youth services division. When he ran for the House in 1990, she managed his campaign, then ran his congressional office as chief of staff. But when the chance came to step out and build her own legacy in 2004, she pounced and became president of Burlington College." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Was Hired To Turn The School Around And Increase Enrollment And Revenue . "Jane Sanders took over in 2004 as a self-described 'turnaround' president. Steeped in alternative schooling, she had earned her undergraduate degree at Goddard College, a slightly larger alternative school in Plainfield, Vermont, that offers a 'holistic' approach to higher education. She got a doctorate in leadership studies in politics and education at Union Institute and University, an accredited nontraditional school based in Ohio that specializes in distance learning. Sanders had big plans for Burlington College. As president, she immediately wanted to grow the student body and campus. 'In 2005 she said that increasing numbers was vital because tuition dollars would help pay for the overall plan she was developing,' Guma wrote in his deeply researched 2016 essay, Paradise Lost: The Fall of Burlington College. "As it turned out tuition dollars rose, but the number of students didn't." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Crafted A Complex Financing Plan, That Included Tax-Exempt Bonds From A State Agency, To Purchase 33 Acres And Expand Burlington College's Campus

In 2010, Under Her Leadership, Burlington College Purchased 33 Acres From The Roman Catholic Diocese For $10 Million. "Then in 2010, she put forward a plan to move the underfunded, minuscule school to 33 acres of valuable real estate along Lake Champlain, north of Burlington's downtown. 'It was the last piece of undeveloped, prime property on the lake shore,' says Guma. For Sanders, it was a chance to secure her legacy. The local Roman Catholic Diocese owned the acreage and was looking to sell. It had recently settled more than two dozen sexual abuse lawsuits for $17.76 million and needed cash. The property went on the market for $12.5 million. The Diocese took Burlington College's offer of $10 million, which seemed to be a bargain." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Made The Purchase Through A Complex Set Of Deals, Including Having The State Issue Bonds And Then Using A Bank Loan To Purchase Those Bonds. "But the college was nearly broke. Its annual budget hovered just below $4 million. Even at a discounted rate, the land would be an extravagant purchase. Yet Sanders was able to craft a complex set of deals to finance the acquisition. The state's Educational and Health Buildings Finance Agency voted to issue $6.5 million in tax exempt bonds. People's United Bank loaned Burlington College $6.5 million to buy the bonds. The Catholic church loaned the school $3.65 million in a second mortgage." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

The Tax-Exempt Bonds Were Issued By The Vermont Educational And Health Buildings Finance Agency (VEHBFA). ""Burlington College made a very good case. Jane Sanders ... was a very dynamic individual. I think she seemed to be in a position where she was poised to take the college to the next level," recalled Robert Giroux, executive director of the Vermont Educational and Health Buildings Finance Agency (VEHBFA), the state entity that supplied the tax-exempt bonds purchased by People's Bank." (Alicia Freese, "Pass Or Fail: What Happens If Burlington College Drops Out?," Seven Days [Vermont] , 8/20/14)

Jane Sanders Secured The Loan By Assuring The College Had Confirmed Pledges Of $1.2 Million, But Records Suggest Only $676,000 Was Raised

Jane Sanders Secured The Loans By Assuring The Bank That The College Had $5 Million In Likely Pledges. "To secure the loans, Sanders assured the bank and the church that the college had $5 million in likely pledges and $2.4 million in confirmed pledges, which she would be able to use to pay off the debt. And finally, the college received a $500,000 bridge loan from Anthony Pomerleau, a wealthy Burlington developer close with Bernie and Jane Sanders." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Signed Documents That Confirmed Pledges Of $1.2 Million But Financial Records Suggest The College Only Received $279,000. "Burlington College ran into trouble almost immediately after the loan repayments were due. For the first fiscal year after the deal was signed, Jane Sanders signed documents that confirmed pledges of $1.2 million. But according to Burlington College financial records obtained by VTDigger, the college received only $279,000. Sanders and the trustees hoped that they could expand the student body and increase alumni donations. Instead, enrollment remained steady and the school didn't come close to meeting fundraising goals." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Promised That A Projected Increase Of Enrollment From 180 To 500 Students And Increased Donations Would Pay For The Land Purchase. "At the time Jane Sanders, a longtime political adviser to her husband, promised the deal would be paid for with increases in enrollment from about 180 to 500 students and $2.7 million in donations." (Wilson Ring, "Feds Looking Into Bernie Sanders' Wife Over Real Estate Deal," The Associated Press , 6/26/17)

The Enrollment Increase And Promised Donations Never Materialized. "But the increase in the size of the student body and the promised donations didn't materialize. By 2014, the college had about $11 million in debt, and the only significant asset it had was the land. The college ended up selling much of the land, which is now being developed. The college closed for good in 2016." (Wilson Ring, "Feds Looking Into Bernie Sanders' Wife Over Real Estate Deal," The Associated Press , 6/26/17)

Between 2010 And 2014, Internal College Audits Show That Only $676,000 In Actual Donations Came In, Despite Jane Sanders Listing Two People Having Confirmed Pledges For More Money Than They Had Offered, And They Did Not Know Their Pledges Were Used To Support The Loan . "The records showed that Sanders had assured People's United Bank and the state bonding agency that the college had $2.6 million in pledges to secure the loan. Internal college audits showed that only $676,000 in actual donations came in from 2010 to 2014. Sanders listed two people as having confirmed pledges for more money than they had offered; neither knew their pledges had been used to support the loan. A third donor had offered a $1 million bequest, to be paid upon her death. Instead, the college's loan application counted it in funds to be paid out over the next few years." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

One Donor Has Confirmed That Her Pledge Was Misrepresented And That She Has Been Interviewed By Federal Investigators

Corinne Bove Maietta Said She Had Made A Bequest Contingent On Her Death But The College Counted $1 Million Pledged From Her. "The donor, Corinne Bove Maietta, told VTDigger she had made the bequest contingent on her death, but was surprised the college counted the $1 million toward paying off the land loan. 'They had me in increments?' Maietta asked, from her home in Florida. 'No, never.' She and her accountant said Sanders asked Maietta to sign documents confirming the donations, but they declined. Maietta said investigators with the Federal Deposit Insurance Agency had interviewed her about the loan details. At the time, Sanders declined to comment." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Maietta Said She Has Been Interviewed By The Federal Deposit Insurance Agency. "She and her accountant said Sanders asked Maietta to sign documents confirming the donations, but they declined. Maietta said investigators with the Federal Deposit Insurance Agency had interviewed her about the loan details. At the time, Sanders declined to comment." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

QUESTIONS OF NEPOTISM HAVE BEEN RAISED IN JANE SANDERS' MANAGEMENT OF BURLINGTON COLLEGE

Burlington College Paid Large Sums To A Woodworking School Founded And Run By Jane Sanders' Daughter, Carina Driscoll

Burlington College Paid Over $500,000 To The Vermont Woodworking School And Leased Space At Its Facility, Which Was Run By Jane Sanders' Daughter, Carina Driscoll. "Her departure was a source of controversy. She reportedly overstated pledged contributions to the school in order to secure a loan from the Roman Catholic Diocese of Burlington. The diocese lost between $1.5 million and $2 million on the deal, according to local reports. By that time, the school had paid huge sums to the Vermont Woodworking School, which is run by Driscoll. The college eventually paid the school more than $500,000 for classes at its Fairfax, Vt., campus, about 30 miles from Burlington. Burlington College even established a Master of Fine Arts program in woodworking with leased space at the school as its major facility. Tax filings show that the college continued paying the woodworking school in the year after O'Meara Sanders left, but stopped doing so the year after that." (Lachlan Markay, "Sanders And Wife Steered Campaign, Nonprofit Money To Family And Friends," Washington Free Beacon , 1/6/16)

Driscoll Also Co-Founded The School. "The bad blood centers on the relationship the college forged with the Vermont Woodworking School, co-founded and run by Sanders' daughter, Carina Driscoll." ("One Family, Two Schools: Questions Raised About Another Sanders Deal," Vermont Digger , 6/13/17)

In 2013, The Leasing Cost Was $182,000. "The college also built up a woodworking program in recent years, leasing space from a school run by Sanders' daughter at an annual cost that was $182,000 in 2013." (Alicia Freese, "Pass Or Fail: What Happens If Burlington College Drops Out?," Seven Days [Vermont] , 8/20/14)

Burlington College Students Began Attending The Woodworking School In 2009 Under An Informal Agreement, That Was Later Formalized By Jane Sanders' Successor. "Students began attending the woodworking school in 2009 on what appears to have been a handshake deal. A formalized contract was made only under Jane Sanders' successor as president, Christine Plunkett. The lack of a written agreement raised questions from the college's accrediting body, the New England Association of Schools and Colleges, or NEASC." ("One Family, Two Schools: Questions Raised About Another Sanders Deal," Vermont Digger , 6/13/17)

Burlington College's Final President, Carol Moore, Called It A "Sweetheart Deal" For Sanders' Daughter. "Moore is equally critical of a deal Jane Sanders brokered between the college and Driscoll's Vermont Woodworking School, a facility in Franklin County where Burlington College students took courses. In interviews with VTDigger, Moore said the college got the short end of the stick. 'This was a sweetheart deal for Carina Driscoll, Jane Sanders' daughter,' said Moore. Driscoll is the stepdaughter of Bernie Sanders." ("One Family, Two Schools: Questions Raised About Another Sanders Deal," Vermont Digger , 6/13/17)

Moore Said The Woodworking School Was "Gouging The College." "Moore alleges the woodworking school was 'gouging the college.' She praised the academic merits of the program but said it was 'barely' profitable." ("One Family, Two Schools: Questions Raised About Another Sanders Deal," Vermont Digger , 6/13/17)

From 2010 To 2012, Burlington College Paid The Woodworking School Over $100,000 Each Year, Even As The College Was Struggling Financially. "As the program expanded, the woodworking school received more money from the college. According to the college's 2010 tax return, the woodworking school received $133,134 during its second year of partnering with Burlington College. The next year, in 2011 - the same year Burlington College racked up a $553,180 deficit - the institution paid $138,571 to the Vermont Woodworking School for space and materials. In 2012, the college plunged further into debt, ending the year nearly $760,000 in the red. That year, the woodworking school received $182,741 in rental costs alone." ("One Family, Two Schools: Questions Raised About Another Sanders Deal," Vermont Digger , 6/13/17)

A Study Abroad Arrangement With A Resort In The Caribbean, Owned By A Friend Of The Sanders, Has Also Drawn Scrutiny

Burlington College Offered A Study Abroad Program In The Caribbean And Paid Money To A Resort Owned By A Friend Of The Sanders. "Burlington College offered its students a study abroad program in the Caribbean, according to tax filings. It reported spending about $47,000 on that program in the tax year beginning in mid-2008. Around that time, the son of Jonathan Leopold, a Burlington College board member, purchased a small resort in the Bahamas called Andro's Beach Club and an accompanying hotel, Nathan's Lodge. Leopold served with Sanders in the Burlington city government-as mayor, Sanders appointed Leopold city treasurer-before becoming embroiled in scandal involving millions of dollars in payments to a Burlington telecommunications company. Sen. Sanders has described Leopold as so close a friend as to be considered 'family.' He reportedly discouraged Sanders' socialist impulses early in their careers. Efforts to reach Leopold were unsuccessful. Shortly after Leopold's son, also named Jonathan, purchased the resort, Burlington College began writing it large checks for all-inclusive stays for its study abroad students." (Lachlan Markay, "Sanders And Wife Steered Campaign, Nonprofit Money To Family And Friends," Washington Free Beacon , 1/6/16)

During Jane Sanders' Tenure, Burlington College Paid The Resort About $68,000 And Payments Stopped The Year After She Left Her Position. "From 2009 through 2011, when O'Meara Sanders stepped down as president of the school, it paid the resort about $68,000, according to annual tax filings. The payments stopped the year after she left the position." (Lachlan Markay, "Sanders And Wife Steered Campaign, Nonprofit Money To Family And Friends," Washington Free Beacon , 1/6/16)

IN 2016, BURLINGTON COLLEGE SHUT DOWN, IN PART BECAUSE OF THE CRIPPLING DEBT INCURRED BY JANE SANDERS' LAND PURCHASE

Ultimately, The Board Of Directors Forced Jane Sanders Out And She Received A $200,000 Severance Package

The Board Forced Jane Sanders Out. "Burlington's free fall accelerated after the board forced out Sanders. The school had moved into the old buildings on its new campus, and though Sanders had budgeted for more than $3 million in renovations, the structures were in need of rehabilitation that would cost substantially more. Unable to increase enrollment to pay for the added costs, the school lost students." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

Jane Sanders Reportedly Received A $200,000 Severance Package When She Left. "Sanders resigned in 2011 and reportedly left with a $200,000 severance package." (Rebecca Shabad, "Was Jane Sanders Responsible For The Closure Of A Small Vermont College?" CBS News , 5/18/16)

Burlington College Sold Off Pieces Of The Land Before Ultimately Shutting Down Because It Could Not Pay Off The Debt

The College Had To Sell Off Pieces Of The Land To Pay Down Some Of The Debt Jane Sanders Brought On. "To stave off bankruptcy, the college sold off pieces of its prime lake shore land to a local developer. Proceeds from the sales allowed the school to pay down some of the debt Jane Sanders had brought on in 2010. Yves Bradley, chairman of the board at the time, called the debt load 'crushing.' (For her part, Sanders told Vermont Public Radio in August 2015 that the school 'had a development plan in place when I left-it was in excellent financial condition.')" (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

In April 2016, Unable To Pay Off The Debt, The College Went Under And Closed Its Doors. "In April 2016, the bank called the loan. Buffeted by the financial distress, changes to its academics and incomplete renovations of the new campus, the college turned belly up. On May 28, 2016, as Bernie and Jane Sanders marked their 28th wedding anniversary with campaign rallies in California, Burlington College closed its doors after 44 years in operation." (Harry Jaffe, "Jane Sanders Lawyers Up," Politico , 6/22/17)

The Debt Incurred From Jane Sanders' Land Purchase Was Cited As The Reason The School Had To Close

Burlington College Pointed To The Debt From The Expansion As The Reason For School's Decision To Close. "In the school's statement Monday, the college pointed to the debt from the expansion as the reason for the school's decision to close, but Holm and the current president declined to comment Monday on whether Sanders' plan was to blame, the Burlington Free Press reported. At the same time, Holm suggested the expansion plan wouldn't work. 'I believe the vision was enrollment would grow, which it did, but not at the level that would have allowed us to manage the financial debt we had incurred,' Holm said. 'So here we are.'" (Rebecca Shabad, "Was Jane Sanders Responsible For The Closure Of A Small Vermont College?" CBS News , 5/18/16)

In 2016, The New President Of Burlington College, Carol Moore, Laid Blame For The College's Demise Squarely On The Board And Jane Sanders, Calling Her "Inexperienced." "BC's fate was set when its former board members hired an inexperienced president and, six years later, approved the imprudent purchase of a $10 million piece of property for campus expansion. Enrollment that year was about 195 and the budget just over $4 million, less than half of this ill-advised investment. What were they thinking? Where was the Finance Committee when these decisions were being made?" (Carol Moore, Op-Ed, "What Really Happened At Burlington College," The Chronicle Of Higher Education , 8/31/16)

In Hindsight, Parties To The Land Purchase Questioned If It Should Have Been Approved

One Of The School's Board Members Said That The Board Did Not Properly Vet The Land Deal And Relied, In Part, On Jane Sanders' "Enthusiasm." "Local activist Robin Lloyd was among the board members who supported O'Meara Sanders' plan to buy the new campus. 'Did we sufficiently vet it? I feel we didn't,' said Lloyd, who explained, 'I was relying on the financial knowledge of other people on the board, and Jane's enthusiasm for it, and also on Jane's fundraising ability.'" (Alicia Freese, "After Burlington College's Collapse, More Questions Than Answers," Seven Days [Vermont] , 5/18/16)

The VEHBFA Later Questioned Whether They Should Have Approved The Financing. "A July 24 Seven Days story about Burlington College's finances prompted an email exchange among VEHBFA board members that was revealed as part of the public records request. Cathy Hilgendorf wrote to Giroux: 'I am concerned as a VEHBFA board member: will there be bad press for the Financing Agency, could we have seen this coming, and would we have denied the bond application?' 'Making the decision using hindsight,' Giroux responded to her. 'I am guessing the board would not have approved the financing.' In a later interview, Giroux admitted the agency could end up "with egg on our face" for its decision to authorize the bonds, but he was confident the board made the right decision at the time." (Alicia Freese, "Pass Or Fail: What Happens If Burlington College Drops Out?," Seven Days [Vermont] , 8/20/14)

Government Accountability

Cronyism

Read more research