Grand Jury Empaneled In $10 Million Fraud Probe Involving Jane And Bernie Sanders

An FBI probe into a 2010 property deal orchestrated by Jane Sanders, wife of Sen. Bernie Sanders (I-VT), has escalated after a report by VTDIGGER reveals that a grand jury has been empaneled, and at least one witness has given sworn testimony in the case. 

asd
Jane and Bernie Sanders

According to VTDigger, "Former Burlington College board member Robin Lloyd says she testified for about an hour on Oct. 26 before a grand jury at the federal courthouse in Burlington."

Paul Van de Graaf, chief of the criminal division for the U.S. attorneys office in Vermont, questioned Lloyd about her role as the development chair of the colleges board of trustees during a period when Sanders was collecting donations and pledges for the purchase of a $10 million city lakefront property. -VTDigger

The Grand Jury will decide whether or not indictments should be handed down over a $10 million loan orchestrated by Jane Sanders purchase a 33 acre property for the now defunct Burlington College - allegedly obtained through a 'fraudulent scheme.' Mrs. Sanders is accused of having lied about funding for transaction, while the FBI has also been looking into claims that Bernie Sanders' office pressured the bank to approve the loan

asd
Burlington College 33-acre property

In June 2017, Politico confirmed that Bernie Sanders and his wife Jane had retained high powered DC lawyers amidst the investigation.

The original request for an investigation into Federal bank fraud was sent in a January 2016 letter to the Vermont District Attorney as well as the FDIC by Brady Toensing - an attorney and chair of Donald Trump's Vermont campaign. The letter detailed the mechanics of the alleged fraud, which is what reportedly launched official investigations. Toensing told Politico on in June; "The investigation was started more than a year ago under President Obama, his Attorney General Loretta Lynch, and his United States Attorney, all of whom are Democrats."

A brief history of Jane Sanders and Burlington College

In 2004, Jane Sanders left her position as her husband's congressional chief of staff to become president of the unaccredited and struggling Burlington College - founded in 1972 and operated out of a former grocery store. When Sanders took over as a "turnaround" president, she set out to rapidly grow the college - announcing a $6 million plan to expand the campus in 2006 which never came to fruition.

Meanwhile, Sanders was rapidly earning a reputation for her "toxic and disruptive" leadership style, and in late 2008, according to a 2016 essay on the college written by a former teacher Greg Guma, "Nearly half of the students and faculty members signed a petition demanding a meeting about the "Crisis in leadership," while Jane Sanders' salary rose to $150,000 in 2009 amidst a tuition hike from $5,000 to $22,407 in 2011. Meanwhile, enrollment dropped by almost 25%.

In 2008, literature professor Genese Grill wrote to the school's academic affairs committee, describing Sanders' "harassment and unethical treatment of other faculty and staff members, many of whom have since left the college disgruntled and angry."

And in 2010, Jane Sanders announced a plan to move the tiny underfunded Burlington college onto a 33 acre parcel of valuable lakefront real estate in Northern Burlington. "It was the last piece of undeveloped, prime property on the lake shore," according to Guma.

The property was owned by the Roman Catholic Diocese, which was strapped for cash after recently settling over two dozen sexual abuse lawsuits for $17.76 million. The 33 acre property hit the market for $12.5 million, and the church agreed to take Jane Sanders' offer of $10 million.

Scheming for loans

When Jane Sanders made the offer to the Roman Catholic Diocese, Burlington College was nearly broke - with an annual budget just below $4 million. In order to finance the property, Sanders secured a $6.5 million loan from People's United Bank in the form of a tax exempt bond purchase, and the Catholic Church agreed to carry a $3.65 million second mortgage on the property. Sanders told both institutions that Burlington college had $5 million in likely donor pledges and $2.4 million in confirmed pledges to be used to pay off the debt.

Unfortunately, that was just for the land. Sanders apparently didn't plan for the $6 million or so required to actually build out the campus on the property to include green space, athletic fields, lecture halls, and walkways. 

Compounding an already dire situation, Sanders' original claim of $2.4 million in confirmed donor pledges was quickly reduced to $1.2 million according to documents filed in the first fiscal year after the purchase - yet in records obtained by VTDiggerBurlington College received only $279,000. Despite hopes by Sanders and college trustees that they could boost enrollment and expand the student body, nothing changed - and the school failed at raising the money to satisfy it's loans.

And then Jane Sanders was fired, with a $200,000 severance package.

 

asd

 

In order to try and avoid bankruptcy, Burlington college sold off pieces of the 33 acre property to a local developer - which allowed the institution to pay off some of the debt Jane Sanders had accumulated, however in April 2016 the bank called it's loan - and on May 28th, the college closed it's doors after 44 years in operation.

As part of its bankruptcy, the Roman Catholic Diocese of Burlington lost at least $1.5 million and perhaps as much as $2 million on the $3.65 million loan.

 

asd

Enter the FBI

Politico revealed in their June report that [F]ederal investigators and FBI agents started to pull apart the $10 million financial arrangementThey 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.

With a Grand Jury now empaneled and interviewing witnesses in the Burlington College saga, one can imagine the outcome of their investigation will largely determine whether Bernie Sanders is a viable candidate in 2020, should he wish to challenge Oprah Winfrey of course.

Comments

MagicHandPuppet Arnold Mon, 01/08/2018 - 09:11 Permalink

"The investigation was started more than a year ago under President Obama, his Attorney General Loretta Lynch, and his United States Attorney, all of whom are Democrats."

 

...Meaning, the Clintonistas had more than money to hold over (corrupt) Bernie's head to ensure he was docile and easily controlled during the primaries.

In reply to by Arnold

PT Joe Davola Mon, 01/08/2018 - 10:26 Permalink

Am I reading this right?  Even though he stepped aside for Hillary, he's going through the wringer anyway.  Bet he's now wishing he had have gone down fighting.

And what I have said before:
When they like you, they LEND you money.  When they no longer like you, they make you pay it back.

In reply to by Joe Davola

MoreFreedom Moe-Monay Mon, 01/08/2018 - 13:12 Permalink

Bernie and Jane made off with Jane's inflated salary and severance for work that harmed rather than helped the college.  But that's not the reason for which she'll likely be indicted and prosecuted.  The reason is for obtaining a loan using fraud: lying about the assets backing the loan.

It's essentially the conceit of socialists: they think they know better than others how to run things, and are willing to lie to get their way.  And it yielded the eventual result of all socialists: bankruptcy.  And just like with socialists, it wasn't their money involved, and they ran out of it.  Look at how quick she did it.

In reply to by Moe-Monay

ioniancat21 Overfed Tue, 01/09/2018 - 11:34 Permalink

They actually believed the lies after telling them for so long so they never assumed they'd lose. I hope Bernie's wife goes down big time along with Bernie, Obama, Huma, Hillary and the rest.

The people need to see someone held accountable. If they don't, that means the law is totally worthless and therefore, the law become's what we feel like it is and anarchy occurs and then the people rise up in the millions and taking the law into their own hands becoming judge, jury and executioner....

In reply to by Overfed

WillyGroper Anunnaki Mon, 01/08/2018 - 12:32 Permalink

" The property was owned by the Roman Catholic Diocese, which was strapped for cash after recently settling over two dozen sexual abuse lawsuits for $17.76 million"

plus "33 acres"

 

again a story that's at the least very questionable.  may have been a diocese, but the HMFIC at the vatiCON is the richest most corrupt entity on the planet.

In reply to by Anunnaki

Endgame Napoleon MagicHandPuppet Mon, 01/08/2018 - 12:03 Permalink

I hate to interject with tired concepts from the US Constitutuon, but they have not proven that Bernie intervened at the bank to get favors for his wife’s failing project. Innocent until proven guilty applies to Bernie, the socialist who never met a part-time-worker single mom who did not deserve more welfare layers, as much as to the Republicans that the Fake News is trying to convict of fake collusion with Russians via a jury of TV viewers. 

But wheel greasing of this ilk is one of the many reasons that assortative mates — power couples — not only cut in half the number of middle class households by concentrating two of few good-paying jobs with benefits under fewer roofs. They are helping to transform this country, founded by anti-aristocratic thinkers, into a 21st century aristocracy. 

Then at the bottom, we have the fake, womb-productivity-based feminism so beloved by Bernie that results in workplace after boldly discriminatory workplace, staffed with 98% moms with spousal income or moms with pay-per-birth monthly welfare that covers rent and food and refundable (EITC) child tax credits that, at the $6,444 max, equal 4 months of wages for full-time workers. 

Bernie’s style of womb-based socialism does nothing but crush the citizens — the single moms with grown children, the single / childless citizens and the noncustodial parents — who must live on earned-only income, competing with moms who work part time to stay below the earned-income limit for welfare, which drives wages down to nothing, the very thing Bernie claims to be against. 

Automation is reducing the number of full-time and permanent jobs. Computer programs are doing more of the work, including more of the management work, freeing up momma managers for multiple babyvacations, with their near-100% crony-mom employees watching their backs between their own frequent and lengthy excused absenteeism.  

Automation makes this corruption at the top and the bottom of the wage pool possible. 

Granted, a bot administrator could have run that unaccredited university better, even coming up with algorithmic advertising strategies to convince students to pay $22,000 per year for a liberal arts degree from an unaccredited university, when a liberal arts degree from an accredited university means squat in today’s part-time, temp, high turnover and 1099-gig job market. 

Degrees and “legally required” licenses aside, Bernie’s pay per birth womb-productivity agenda pays way more than hard work, daily and all-day attendance, higher sales generation and higher account-retention numbers in the many crony-parent workplaces. 

By promoting the concept of free college, Bernie buys into the neoliberal, Clinton Era line that college and retraining are the keys to alleviating underemployment. This does not align with reality at a time when [most] of the jobs in large scale and small-scale workplaces are staffed by non-degree-holding citizens and immigrants — legal and illegal — who can work for low pay and part-time hours due to unearned income from spouses, ex spouses or government for sex and reproduction.  

 

 

In reply to by MagicHandPuppet

Omen IV MagicHandPuppet Mon, 01/08/2018 - 18:46 Permalink

which is why so many primary elections in state after state were a fraud and Bernie did nothing to challenge

In Brooklyn alone over 120,000 voter registrations -  new residents almost all young Millennials  went missing on Adams Street denning the right to vote to all those Bernie voters - Board of Elections with the Daughter of  Nina Lowe Congresswoman from Westchester and who gave up her slot to go for the senate in 2004 and handed the nomination to .......Hillary

Nina Lowes Daughter was fired post election from the BoE

In reply to by MagicHandPuppet