Jane's tenure as President of Burlington College
In 2010 Jane wanted to secure a $10 million loan for the expansion of the Burlington College campus. She received approval from Vermont Educational and Health Buildings Finance Agency (VEHBFA) on tax-exempt status for the loan. VEHBFA also voted that the loan be paid utilizing bonds of which People's United Bank loan $6.5 million plus a $3.65 second mortgage by the Catholic church whose land was being purchased by Burlington College.
So at this point, we have a $10 million loan that has been approved with favorable conditions. However, this loan was contingent upon the college providing proof of a minimum of $2.27 million of cash. Here is a signature by Jane Sanders in December 2010 agreeing to the terms of the loan. She could have backed out at this point and have been fine. But Jane Sanders submitted "proof" of $2.6 million for the purpose of meeting the contingency. Unfortunately the maximum amount of money that the college actually had then was $279,000. There is no way a mistake could have been made as the documents she signed for the closing of the loan were clear. Unfortunately the loan had already gone through when this was discovered. Even by 2014 the college was only able to come up with $676,000. You can see how this one action financially ruined this college.
Basically she signed legal loan documents that said she had more money than she did. Federal bank fraud occurs when a person knowingly executes, or attempts to execute, a scheme or artifice (1) to defraud a financial institution; or (2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises. 18 U.S.C. § 1344. There was harm caused by these actions too. Significant harm to both the Catholic church that lost $2 million as a result of this along with everybody involved with Burlington College which has been forced to close.
These actions are troubling. It is even more troubling if any evidence emerges that Bernie influenced the loan. She was fired shortly after the fraudulent loan was obtained and given a $200,000 severance payment. I think that the reason we haven't seen more of the tax returns is because the embarrassment that payment, which is likely half of their income for that specific year, would cause. There is also People's United Bank that is out $6.5 million, but fuck banks, right?
Furthermore, I have always liked Jane Sanders. Her involvement with the campaign was positive and respectable. But just how much power does she have? Is she in charge of financial disclosure forms? In any of the campaign's interactions with the FEC? Should this call into question her dealings if this was the case? What do we make of all of this?
If anybody wants to read more about the details involved here look at this document.
