Liberty University Sues Jerry Falwell, Jr. for Millions Over Alleged Scheme to Fleece the School; Chastises ‘Discordant Sexual Conduct,’ ‘Racy Photos’

Liberty University has sued its former leader, Jerry Falwell, Jr. , in Virginia state court on a myriad of claims related to Falwell’s departure last year from the institution founded by his own father. The lawsuit alleges that Falwell, Jr., enticed the University to sign him to a multi-million-dollar contact knowing full well his wife’s affair with another man and his own alcohol use would soon become public — in essence giving him an escape hatch to pocket millions despite violating the University’s moral code. “Liberty asserts this suit for several purposes, including (a) to recover University property that remains in the possession of Falwell Jr. post-resignation, (b) to redress breaches of various fiduciary duties that Falwell Jr. owed to Liberty while serving as the University’s President and Chancellor, and (c) to recover damages for violations by Falwell Jr. of Virginia’s business conspiracy statute,” the lawsuit says. A 74-page complaint, obtained Friday by Law&Crime, alleges three counts against Falwell, Jr. in sum total: (1) breach of contract/conversion; (2) breach of fiduciary duty; and (3) statutory conspiracy. Liberty wants Falwell to pay one $10 million damage award; another $10 million in compensatory damages “trebled as provided by statute,” $350,00 in punitive damages, other damages “provable at trial,” interest, and attorneys’ fees. Liberty’s case in chief draws its factual assertions from two primary sources. The first is an August 23, 2020 statement Falwell, Jr. gave “exclusively” to the Washington Examiner which “divulged the saga of a ‘former family friend’ who had an affair with Becki Falwell, the wife of Falwell Jr., and ‘was threatening to expose it.'” The other is a lawsuit Falwell, Jr. himself filed against the university last year . (Falwell, Jr. “voluntarily dismissed” the case in December 2020, the new lawsuit says.) Becki Falwell’s affair with Giancarlo Granda of Miami was well documented last summer. Liberty’s beef with the situation is that Falwell never disclosed it to the university — even when he suspected Granda of attempting to extort his family. “Falwell Jr. and Granda both knew that matters of infidelity, immodesty, and acceptance of a loose lifestyle would stand in stark contrast to the conduct expected of leaders at Liberty,” the lawsuit alleges. “Granda had amassed considerable leverage over the Falwells, and, accordingly, they worked to keep Granda pacified and quiet.” In an undated image embedded within the lawsuit, Donald Trump greets Giancarlo Granda as Jerry Falwell, Jr. (center) and Becki Falwell (extreme far left) look on. Granda gained access to powerful people, the lawsuit says, and a chance to “understand how vulnerable the Falwells had made themselves by permitting his affair with Becki.” “He [Granda] became closely exposed to Liberty’s high moral standards, which overtly clashed with Liberty’s first couple’s discordant sexual conduct,” it continues. Granda allegedly sold “intimate pictures of Becki that he had somehow acquired” to his friends. And, Falwell, Jr. claimed in his original lawsuit that “Granda’s associates ” were the one who were trying to “extort the Falwells,” the new lawsuit says. But in reality, it alleges, Granda was the one really trying to shake money out of the powerful Falwells — despite the family’s attempts to “quell” the “controversy over racy photos.” “The experience with the racy photos no doubt suggested to Granda that Falwell Jr. could be leveraged, and taught the young man that with persistence, a price might be paid by the Falwells to avoid embarrassment,” the lawsuit says. After Granda recorded calls with Becki, some of which were published by Reuters , and sought between $600,000 and $2 million to keep his mouth shut, “Falwell Jr. did not inform Liberty’s Board of Trustees of this extortive conduct.” “The Falwells openly concede that Granda’s behavior was targeted toward damaging not only the Falwells but also ‘Liberty University,'” the lawsuit explains. “To Granda, threatening Falwell Jr.’s role at Liberty — particularly given Liberty’s religious mission and detailed behavioral codes — was the center of his plot. It was Falwell Jr.’s prominent role at Liberty that fueled the Chancellor and President’s vulnerability.” Again, the lawsuit: In addition to the sexual affair, Granda has repeatedly mentioned in media reports the Falwells’ fraternization in high-energy social establishments. Such behavior was prohibited for Liberty students, who, as a condition of enrollment at Liberty, would pledge to refrain from imbibing alcohol, engaging in immodest behavior, and having sex outside of a Biblical marriage. By agreement, these rules govern the students’ lives both on campus and off, and during school years and in the summer between academic years. This image embedded within Liberty University’s lawsuit purports to show Jerry Falwell, Jr. and his wife Becki “pictured . . . amongst revelers” at a “Miami-area club.” Falwell, Jr. is also accused of loaning $1.8 million to an “enterprise” owned by Becki Falwell, Trey Falwell (the couple’s son), and Granda, which “continued to house a liquor store” and an “on-site hostel.” (Trey Falwell was but is no longer employed by Liberty, it was revealed this week .) The lawsuit says Falwell, Jr. called Granda “deeply disturbed,” “unstable,” “unbalanced,” “erratic,” “manipulative,” “self destructive,” “crazy,” and “verbally abusive.”  He was otherwise told Granda was “racist,” “legitimately scary,” had “unresolved psychological issues,” and was given to “rages.” Yet Falwell, Jr. “worked diligently to coopt Granda into total confidentiality about the most perilous details” and worked privately to “suppress the damaging” allegations without “divulging to Liberty’s Board of Trustees[] Granda’s active attempts at extortion.” The result was somewhat of a quid pro quo which ultimately harmed Liberty, the lawsuit alleges: The Falwells knew they shared a unity of interest with Granda.  They had an important goal in common:  silence about the Falwells’ salacious acts.  The Falwells needed silence from Granda in order to safeguard their personal reputation, Jerry Jr.’s professional standing, and his employment with America’s leading evangelical university. Granda needed the Falwells to remain silent, too; Granda could not afford to let his ‘dirt’ on the Falwells leak.  If the media reported the bad facts that Granda had stored up about Falwell Jr. and Becki before Falwell Jr. paid hush money to Granda, then all leverage was lost.  Granda’s scheme for a pay day from Falwell Jr. would be valueless.  Clearly Granda wanted to pressure Falwell Jr., but only so as to secure payment in exchange for Granda’s promise to hush the controversy. Faced with Granda’s mounting extortive pressure, the Falwells had a decision to make:  either they had to go public and expose Granda to Liberty, the authorities, and/or the media, or Falwell Jr. had to pay Granda off, and convince Granda to remain quiet forever.  Despite his clear duties as an executive and officer at Liberty, Falwell Jr. chose personal protection.  He committed himself to non-disclosure, and actively developed an approach to muzzle Granda. In an image embedded in the lawsuit, Giancarlo Granda is seen with and Jerry Falwell, Jr. in the Florida Keys. An alleged “Granda Plan” worked for six years, from 2014 to 2020, the lawsuit alleges. The Falwells “attempted to make Granda loyal to their family” with hopes he would “mature,” “accept Becki’s rejection,” and move on so “everyone involved” could “live a productive life.” The Falwells posed with photos with Granda and even took him to Washington, D.C., to meet with Rep. Bob Goodlatte (R-Va.) for a tour of the U.S. Capitol. In an image embedded within the lawsuit, Giancarlo Granda (rear, dark shirt) is se
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