Jerry Falwell, Jr. accused of using Liberty University assets to benefit his personal trainer in real estate deal

Some "non-profit" organizations and the people who run them seem to have a suspiciously large amount of wealth; as reported by Aram Roston and Joshua Schneyer of Reuters, August 27, 2019 (link in original):

LYNCHBURG, Va. - Evangelical leader and prominent Donald Trump backer Jerry Falwell Jr personally approved real estate transactions by his nonprofit Christian university that helped his personal fitness trainer obtain valuable university property, according to real estate records, internal university emails and interviews.

Around 2011, Falwell, president of Liberty University in Virginia, and his wife, Rebecca, began personal fitness training sessions with Benjamin Crosswhite, then a 23-year-old recent Liberty graduate. Now, after a series of university real estate transactions signed by Falwell, Crosswhite owns a sprawling 18-acre racquet sports and fitness facility on former Liberty property. Last year, a local bank approved a line of credit allowing Crosswhite’s business to borrow as much as $2 million against the property.

Falwell, one of the most influential right-wing Christian leaders in the United States, has been buffeted by disclosures about his private dealings over the last year and a half.

A Florida lawsuit brought public scrutiny to a relationship between the Falwells and Giancarlo Granda, a young man they befriended while he was working as a pool attendant at a luxury Miami Beach hotel and later backed in a business venture involving a youth hostel. Falwell filed an affidavit in 2018 saying he used his own wealth to lend $1.8 million to the $4.65 million project with Granda.

And U.S. President Trump’s now-jailed fixer, Michael Cohen, has said he helped the Falwells suppress racy personal photos, as Reuters reported this May, in the months before Cohen persuaded Falwell to endorse Trump’s 2016 White House bid. There is no evidence that Cohen’s efforts to suppress the photos were a quid pro quo for Falwell’s vital political backing.

The support Falwell provided to the two young men, Granda and Crosswhite, has some parallels. Both were aided in business ventures and both have flown on the nonprofit university’s corporate jet.

One difference: When Falwell helped Crosswhite, he used the assets of Liberty, the tax-exempt university he has led since 2008. Among the largest Christian universities in the world, Liberty depends on hundreds of millions of dollars its students receive in federally backed student loans and Pell grants.

In 2016, Falwell signed a real estate deal transferring the sports facility, complete with tennis courts and a fitness center owned by Liberty, to Crosswhite. Under the terms, Crosswhite wasn’t required to put any of his own money down toward the purchase price, a confidential sales contract obtained by Reuters shows.

Liberty committed nearly $650,000 up front to lease back tennis courts from Crosswhite at the site for nine years. The school also offered Crosswhite financing, at a low 3% interest rate, to cover the rest of the $1.2 million transaction, the contract shows.

Crosswhite declined to answer questions about the deal. “All I will say is that my wife and I consult each other before every major business deal and we bought the complex from Liberty together,” he said in an email. “My wife and I both work around the clock to make our business succeed.”

Falwell referred Reuters to the university for comment. Liberty issued a statement describing the transaction as both proper and beneficial for the school.

Liberty had received the athletic center as a gift in 2011 from a trustee who has since died, but it quickly became a “drain on university resources,” the statement said. Crosswhite had been leasing gym space at the property since 2013, and was thus “the most viable purchaser.” Liberty said it adjusted the price and financed Crosswhite’s purchase because its tennis team would continue to use the courts.

Falwell has “tried to be a business mentor” to Crosswhite, the university statement said, but that effort did not “cause him to abandon his fiduciary duties” to Liberty.

As Liberty’s leader, Falwell draws an annual salary of nearly $1 million, and is obligated to put the university’s financial interests before his own personal interests when conducting Liberty business.

Liberty University denies the charges; you can see Liberty's side of the story here, and Dr. Falwell's response here.



See also my previous posts:

Libertine University (May 9, 2009)

Look who Liberty University's commencement speakers are for 2010 (April 24, 2010)

Adulterer and New Ager-turned Roman Catholic Newt Gingrich to speak at The Awakening 2011 conference at Liberty University in April (March 15, 2011)

Liberty University (and another "Christian" school) stage a work by Jesus Christ Superstar composer (March 24, 2011)

Liberty University has Lt. Gen. Jerry Boykin as a guest speaker--after he's been exposed as a Jesuit (March 14, 2012)

Former U.S. President Jimmy Carter to deliver keynote address at 2018 commencement of Liberty University (March 27, 2018)