Did you know it’s a federal felony to misrepresent your financial status, i.e., your ability to repay, on a loan application to a Federally insured national bank? Yeah, a lot of people don’t know that and a lot of people have found out the hard way. It doesn’t matter that you didn’t know it when you lied about the extent and/or value of your assets, or any other matter that affects your ability to repay.
If you’re Burlington College in Burlington, Vermont and you apply for a $10 Million loan in 2010 to buy some lake front land, your anticipated student enrollment and your donor levels are things that a bank will look at to judge your ability to repay the loan. So, if you’re the president of the college you don’t want to lie about any of those things. At least if you don’t want to end up in a Federal slammer.
Bernie’s wife Jane was the president of Burlington College in 2010 when the loan was applied for and later approved. There were some in the College administration who warned that borrowing and buying the land in question was a bad idea. They must have had a point because Burlington College began to have a hard time paying its bills. It shut down for good on May 27, 2016. That prompted certain questions about whether the college had made a big mistake in borrowing so much money to buy that 33 acres of Lake Front Property. Jane has been accused of distorting the school’s donor levels, and Bernie has ben accused of using his position as a Senator from Vermont to pressure the bank into making the loan.
So now there’s a Federal investigation under way, and Bernie and Jane have lawyered up. They haven’t been found guilty off anything yet and both may ultimately either not be charged with any crime or face a charge and be found not guilty.
How well do you know Bernie Sanders? You don’t really know Bernie until you read this piece from Investor’s Business Daily, January 26,2016: The Bum Who Wants Your Money