Burlington College Closing Due To “Crushing Debt” Incurred Under Presidency Of Bernie Sanders’ Wife
This may appear to be a story from the onion, but it is a true story of what happens when Socialists run out of other people’s money.
In what may be a harbinger of things to come should Bernie Sanders become president, earlier today Burlington College, a small Vermont private school once led by the wife of Democratic presidential candidate Bernie Sanders, said Monday it will close later this month, citing “the crushing weight” of debt incurred during the presidency of Jane Sanders who was in charge of the college until 2011.
Inspector general of the Federal Deposit Insurance Corporation is seeking a probe into whether Ms. Sanders fraudulently secured the loans that destroyed the college.
According to WaPo, the college which enrolled 224 students as of fall 2014, said it faced financial troubles connected to its 2010 purchase of 32 acres of lakefront property from the Archdiocese of Burlington, according to the Burlington Free Press.
The reason for the small liberal school’s terminal financial trouble is that to fund the property purchase from the Catholic diocese, Sanders took out $10 million in loans that were based on fraudulent loan applications. As HeatStreet reported last month, the college almost immediately fell short on its financial obligations as fundraising pledges and commitments Ms. Sanders cited in the loan agreements never materialized. Less than a year after leading Burlington College into massive debt, Ms. Sanders resigned, taking with her a self appointed $200,000 severance package.
By 2014, because of its shaky finances and running deficits, Burlington College found itself placed on probation for two years by the regional accreditation agency.
Jane Sanders was president of the college from 2004 to 2011. Her husband, Bernie Sanders (I-Vt.), a former mayor of Burlington, served in the U.S. House of Representatives from 1991 to 2007 and since then has represented Vermont in the U.S. Senate. He is now competing with Hillary Clinton for the Democratic presidential nomination.
Jane Sanders stepped down in 2011 amid a dispute with the college’s board over the loan. After her husband launched his presidential campaign, news stories emerged that scrutinized her role in a loan application for the lakefront real-estate purchase. Jane Sanders has dismissed those stories as politically motivated and said the issue was not a factor in her departure from the college.
The college ended overindebted and in financial ruin, similar to the fate of a Latin American failed “socialist paradise”, currently in the news on a daily basis.
Where things could get tricky for Bern is is that as HeatStreet adds, Catholic parishioners in Vermont and others have called for an investigation into whether Ms. Sanders committed federal bank fraud by deliberately misrepresenting the amount that the college had secured in fundraising pledges as she sought financing for the land purchase.
As Ms. Sanders pursued financing for the land acquisition, she repeatedly said that Burlington College had received more than $2 million in fundraising commitments and pledges, according to numerous records. But in fiscal year 2011, Burlington College raised only $279,000,—though the college had earlier claimed to have secured $1.2 million in confirmed pledges – an obvious fraud.
In January, Vermont lawyer Brady Toensing wrote a letter on behalf of Catholic parishioners to the U.S. attorney in Vermont, as well as the inspector general of the Federal Deposit Insurance Corporation, seeking a probe into whether Ms. Sanders fraudulently secured the loans.
The U.S. attorney, Eric Miller, confirmed that he had received the parishioners’ letter but could not comment on the status of any investigation.
So Bernie’s wife Jane tanked a poor little college with massive debt and yet got out of the cushy job w/ a nice severance package just like what these failed CEOs are doing with golden parachutes. The same thing Bernie has been drilling against. Hypocrite?