The Chronicle of Higher Education was quick to review the form required by the IRS for tax exempt organizations. In that document, the school accuses former president Jerry Falwell, Jr. of misusing Liberty money according to reporter Dan Bauman.
“Liberty reported that he used university-owned aircraft and university credit cards for personal ends and also took advantage of housekeeping and grounds keeping services for his personal residence,” Bauman says.
Liberty claims Falwell’s son and two daughters-in-law were on the payroll, earning salaries that were unreasonable, and the form shows just how much Falwell was paid when he parted company with the university his father founded.
“Falwell was paid a total of $3.5 million," says Bauman. "Nearly $2.5 million came in the form of severance as well as $830,000 in base pay, a $100,000 bonus, some additional $122,000 in other taxable compensation.”
And, he says, the IRS filing indicates Liberty paid to care for Falwell’s mother and made improvements to the president’s home.
“The university said back in 2019 that because of security reasons university employees and university assets needed to be deployed to improve Jerry’s personal residence.”
Liberty claims Falwell did not pay the university back for any of those services. Even so, Bauman says he might be in line to collect over $8 million in deferred compensation.
“The university is still recording that as a liability, and it could potentially, if a judge rules against them owe Mr. Falwell $8.7 million.”
Falwell’s lawyer denied most of those charges and accused Liberty of shifting the blame as the IRS continues its audit of school finances in 2019
