Toensing asserted that when Jane was president of the now-closed Burlington College she made fraudulent claims in order to gain a $10 million loan to finance a real estate deal. Officials at the college identified the debt as a major contributor to the eventual closing of the school.
Toensing’s assertions were based on hearsay information that he heard from Republican State Rep. Don Turner, the minority leader of the Vermont House. Turner told WCAX-TV that his friends at the bank, who “didn’t have direct knowledge of the negotiations,” told him a story about Sen. Sanders’ office pressuring the bank for a Burlington College loan. He also said he wouldn’t have reported it to federal investigators.
“This was not a country store, cracker-barrel rant,” Toensing said. He noted that evidence can arise from hearsay information.
Federal officials wouldn’t comment about any investigation, but Sen. Sanders did confirm there was a probe.
Toensing is a partner at the law firm diGenova & Toensing. The law firm is owned by his mother Gloria Toensing and step-father Joe diGenova. DiGenova and Toensing have a reputation for involvement in Republican causes. In 1998 they were featured in The Washington Post article titled “The Power Couple at Scandal’s Vortex.” Politico recently noted: “His mother, Victoria Toensing, is one of the most committed conservative lawyers in Washington.”