Bernie Sanders and his wife, Jane, have both hired well-known attorneys due to an ongoing criminal investigation by the FBI and the Federal Deposit Insurance Corporation (FDIC), over whether Jane Sanders, while she was president of Burlington College – falsified a loan application in 2010 that eventually led the school into bankruptcy in 2016.
Jane Sanders stated on the loan application that she had secured $2.65 million in donations to pay for a $10 million land purchase to expand the college, which helped secure a $6.5 million loan.
One allegation is that Senator Sander’s office called the bank to encourage them to make the loan when they were undecided about it.
Over the next four years, only $676,000 ever materialized and the college defaulted on the loans. Jane Sanders resigned as president of the college in 2014 with a $200,000 golden parachute.
The last president of Burlington College, Carol Moore, confirmed in May that the FBI was investigating the case and had taken a filing cabinet full of donor files.
In a letter to the Chronicle of Higher Education in 2016 explaining the situation, then president Moore wrote:
“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.”