Update, Aug. 25: According to an interview with ABC News late Monday, Falwell says he has tendered his letter of resignation as president of Liberty University.
Earlier:
Although other news outlets have reported that Jerry Falwell Jr. has agreed to resign as president and chancellor of Liberty University, Falwell said in an interview Monday evening with Virginia Business that such reports are “completely false.”
He said that he has not agreed to leave the post permanently, nor does he plan to, although he is on an indefinite leave of absence following a series of controversies this summer. Falwell added that Reuters’ report released Monday that a former business associate, Giancarlo Granda, had a years-long affair with Falwell’s wife, Becki, with his full knowledge was “90% false.”
Falwell said in a brief phone interview Monday that he had told the Liberty Board of Trustees earlier in the summer that he needed a short break from work.
After he posted what he called a “stupid picture” on Instagram — a photo he says his wife took of him and her assistant, both of whom had their pants unzipped and bellies sticking out — the board said it would be better to call the sabbatical a “leave of absence,” Falwell said. “I don’t care what you call it. I’ve been at this for so many years and under so much stress, I decided I needed a three-month break.”
He said he’s “enjoying it, except for the press.”
The Instagram photo, which Falwell removed soon after posting it, was too much for many of his evangelical supporters, some of whom called for him to step down. On Aug. 7, Falwell took a paid, indefinite leave of absence from his leadership positions at Liberty.
On Sunday, Falwell released a statement to the Washington Examiner saying that his wife had had a brief “inappropriate relationship” with a man they had met several years ago while on vacation, and that the man had tried to blackmail them by publicly revealing the affair if they did not pay him “substantial monies.”
Then, on Monday afternoon, Reuters posted an interview with Granda, who said that his affair with Becki Falwell took place from 2012 through 2018 and that Jerry Falwell Jr. had known about it and often watched them having sex.
In Falwell’s statement to the Examiner, he said he was not involved in the affair and that he was upset upon finding out about it, but that he had forgiven his wife and the young man. Granda, in his interview, said he was a 20-year-old pool attendant at the Fontainebleau Miami Beach hotel at the start of his involvement with the Falwells. He met with the couple “multiple times a year” in Miami, New York and at their home in Virginia, Granda told Reuters, providing texts, emails and other evidence.
In 2013, a shell company, Alton Hostel LLC, purchased a Miami Beach youth hostel for $4.65 million, with Jerry “Trey” Falwell III listed as its sole manager. According to a 2017 Politico article, Granda managed the hostel, and Falwell III was given the money to purchase the property by his father, Falwell Jr.
Granda said that he had a falling-out with Jerry and Becki Falwell in 2018 after he wanted to “negotiate a buyout” and sever ties with the couple. In a text message from this June to Falwell that was shared with Reuters, Granda wrote, “Since you’re okay with ruining my life, I am going to take the kamikaze route. It really is a shame because I wanted to reach a peaceful resolution and just move on with our lives but if conflict is what you want, then so be it.”
Granda denies trying to extort money from the couple, while Falwell characterized the situation as a “Fatal Attraction” scenario, referring to the 1987 movie. Falwell said in the phone interview that the Reuters story was “90% false,” and that “all you have to do is see what we sent to the Washington Examiner, and you’ll see what’s correct.”
Falwell has made as much as $1 million a year leading Liberty. With more than 110,000 students enrolled, most of them online, Liberty is Virginia’s largest school by enrollment and is the nation’s second-largest online university, behind the University of Phoenix.
Julia Chu was named Henrico County-based Markel Corp.‘s chief risk officer, a newly created role, the financial holding company announced Monday. She was previously Markel’s chief global ceded reinsurance officer, a position she started in March 2018.
Chu will be responsible for the specialty insurance underwriter’s enterprise risk management, capital planning and ceded reinsurance placements.
“As our new chief risk officer, Julia will lead Markel’s end-to-end global approach to enterprise risk management, particularly with regards to our insurance-related business strategies and improving risk-adjusted returns,” said CFO Jeremy Noble, to whom Chu will report.
Before joining Markel, Chu was managing director at Guy Carpenter & Co. and a vice president at Aon Re. She is a graduate of the University of California, Los Angeles and Cal Tech-Pomona.
A survey released Monday by Virginia Commonwealth University and Arizona State University economists indicates that coronavirus-fueled economic uncertainty may have paused the nation’s labor market recovery, which stands at 63.8% employment.
The employment rate remained steady during the week of Aug. 9-15, according to the report, which is based on the Real-Time Population Survey conducted by VCU business professor Adam Blandin and ASU’s Alexander Bick, an associate professor of economics.
After an increase in employment in May and early June, the labor market was essentially flat between early June and early July. Since then, the market has grown but at a slower pace. “The slower pace of the recovery coincides with a higher level of new virus cases compared to May and June, again suggesting that labor market conditions are closely tied to concerns and uncertainty around the virus,” Blandin said in a statement.
The February employment rate was 73.8% and began to dip in mid-March, as the pandemic took hold in the United States. In early May, according to the Real-Time Population Survey, the employment rate was at a low of 55.3% but recovered to 63.5% by early June. The survey is conducted in collaboration with the Federal Reserve Bank of Dallas and follows the methodology of the U.S. Bureau of Labor Statistics’ Current Population Study.
Beth Doughty, executive director of the Roanoke Regional Partnership, announced Monday she will retire after 22 years with the public-private economic development organization. She plans to leave in December.
Roanoke Regional Partnership covers the counties of Alleghany, Botetourt, Franklin and Roanoke, the town of Vinton and the cities of Covington, Roanoke and Salem.
“It has been an honor to work for the partnership, lead its evolution and work with a talented and committed team,” Doughty said in a statement. “I have been motivated by the many ways this organization makes a difference.” She joined the organization in 1990 as marketing director, served as executive director from 1992 to 1999 and then was president of the Roanoke Regional Chamber of Commerce from 1999 to 2008. That year, she rejoined the partnership as executive director, and also served as president of the Virginia Economic Developers Association.
Doughty also was named one of North America’s top 50 economic developers by Consultant Connect three times. The partnership, which was formed in 1983, has worked with partners to produce 19,000 jobs and $19 billion in investment in the region. In 2009, the organization launched Roanoke Outside, which promotes outdoor recreation activities and tourism, and in 2017 started Get2KnowNoke, a talent attraction and retention program connected to the region’s colleges and universities.
The partnership’s board of directors has formed a search committee to find Doughty’s replacement.
The Virginia Department of Health has reported 113,630 COVID-19 cases as of Aug. 24, an increase of 6,209 cases in the past week. The state also saw 86 more deaths from the coronavirus last week, bringing the total to 2,471.
The number of new deaths is up from the previous week’s total of 58, but the number of new cases declined from the previous week, which saw 6,672 new cases. The statewide positivity rate is 6.4%, an improvement from recent weeks — although state health officials are watching numbers closely as some colleges start classes in person.
Virginia Tech and Virginia Commonwealth University have launched COVID-19 dashboards that record student and employee positive test results. At Tech, 21 people have tested positive since Aug. 9, with an increase of 16 cases during the week ending Aug. 23. VCU has 58 active student cases and 12 employee cases as of Aug. 23.
Some communities in the state still have higher percentages than the state average. Earlier this month, Gov. Ralph Northam placed restrictions on Hampton Roads localities, limiting alcohol sales to 10 p.m. and not allowing gatherings of more than 50 people.
Here are the health districts statewide with higher than 10% positivity rates:
Central Virginia (Lynchburg and Amherst, Appomattox, Bedford and Campbell counties): 10% (up from 8.1% Aug. 17)
Chesapeake: 11.2% (down from 11.3%)
Pittsylvania-Danville: 12.7% (down from 12.9%)
Portsmouth: 11.5% (down from 12%)
West Piedmont (Martinsville and Franklin, Henry and Patrick counties): 17.5% (down from 17.7%)
Western Tidewater (Isle of Wight and Southampton counties, cities of Franklin and Suffolk): 12.4% (down from 12.8%)
These are the Virginia localities that have seen 400 or more total cases, as of Aug. 24:
Globally, there are 23.4 million reported COVID-19 cases and 809,591 confirmed deaths as of Aug. 24. The United States, which has the most confirmed cases and deaths worldwide, has seen 5.7 million confirmed cases so far, with 176,816 deaths nationwide attributed to the coronavirus since February.
RELATED STORY: Despite saying earlier Monday that reports of his resignation were “completely false,” Jerry Falwell Jr. said in a late-night interview with ABC News that he tendered his resignation as president of Liberty University late Monday night.
Updated, 1:30 p.m. Aug 24
A former business associate of Liberty University President Jerry Falwell Jr. said in a Reuters interview published Monday that he had an ongoing, years-long sexual relationship with Falwell’s wife, Becki, with the full knowledge of her husband, who often watched them having sex.
The bombshell comes hours after Falwell, who is on indefinite leave as president of the Lynchburg-based Christian university, acknowledged an “inappropriate relationship” between his wife and a former friend they had met several years ago. In a statement sent Sunday to the Washington Examiner, Falwell alleged the man tried to blackmail the couple by publicly revealing the affair unless they paid him “substantial monies.” In the Reuters interview and statement emailed to the Examiner, Giancarlo Granda denied trying to extort money from the couple.
Falwell’s statement did not include Granda’s name, but his connection to the Falwells has been known publicly since a 2017 Politico story described their relationship with Granda, a former pool attendant who was later a business partner of Falwell’s son, Jerry “Trey” Falwell III, in a Miami Beach hostel.
The property was purchased in 2013 for $4.65 million by a shell company, Alton Hostel LLC, that listed as its sole manager Falwell III, currently Liberty’s vice president of university support services. According to Politico, a Liberty official said Falwell Jr. had given his son the money to purchase the hostel, which was operated by Granda.
In the Reuters story, Granda said that he met the Falwells in March 2012 while he worked at the Fontainebleau Miami Beach hotel, when he was 20. Starting that month, Granda said, he began an affair with Becki Falwell, which continued into 2018. In the interview, he said, “Becki and I developed an intimate relationship and Jerry enjoyed watching from the corner of the room.” He said that he met with the couple “multiple times per year” in Miami and New York, as well as at the Falwells’ home in Virginia.
According to the story, Granda provided emails, text messages and other documents to Reuters showing the nature of the relationship, which ended, Granda said, when he wanted to cut ties with the couple and had a dispute over business.
Falwell’s statement to the Washington Examiner discussed his wife’s “inappropriate relationship” with Granda, while noting the affair was “something in which I was not involved.” Jerry and Becki Falwell were aware of the Reuters story as of at least early last week, when the news agency says it presented its reporting to the couple for a response.
Michael Bowe, Jerry Falwell’s attorney, told Reuters that his client “categorically denies everything you indicated you intend to publish about him,” according to the story.
Granda told Reuters that he did not try to extort money but was trying to “negotiate a buyout from a business arrangement” with the couple. In a text message from this June to Falwell that was shared with Reuters, Granda wrote, “Since you’re okay with ruining my life, I am going to take the kamikaze route. It really is a shame because I wanted to reach a peaceful resolution and just move on with our lives but if conflict is what you want, then so be it.”
In an email sent to the Washington Examiner, Granda wrote, “Any allegation of extortion is falsely defamatory and belied by clear documentary evidence. The Falwells’ attempt to sandbag me … with a last-minute story without providing the Examiner clear evidence that this was not simply an ‘affair’ with concocted allegations of extortion reeks [of] desperation. The WHOLE truth will come out.”
Likening the situation to the 1987 movie “Fatal Attraction,” Falwell said in his statement to the Examiner, “I am now dealing with things in a way that I should have done before — including seeking to address the emotional toll this has taken. I shouldn’t have been afraid to admit my vulnerabilities and to reach out for assistance from the mental health professionals who could have alleviated this pain and stress. I am committed to speaking out and sharing with others at Liberty the importance of seeking counseling instead of thinking you need to be tough and try to bear these burdens on your own. I am in the early stages of addressing these issues.”
On Aug. 7, Falwell took an indefinite paid leave of absence from his positions as the conservative Christian university’s president and chancellor at the request of the executive committee of the university’s board of trustees. The move followed an uproar over a controversial Instagram photo Falwell posted of himself and his wife’s assistant from a party aboard a yacht. Falwell has made as much as $1 million a year leading Liberty. With more than 110,000 students enrolled, most of them online, Liberty is Virginia’s largest school by enrollment and is the nation’s second-largest online university, behind the University of Phoenix.
In the statement issued Sunday, Falwell Jr. wrote, “During a vacation over eight years ago, Becki and I met an ambitious young man who was working at our hotel and was saving up his money to go to school. We encouraged him to pursue an education and a career, and we were impressed by his initiative in suggesting a local real estate opportunity. My family members eventually made an investment in a local property, including him in the deal because he could play an active role in managing it, and became close with him and his family.”
Falwell goes on to add, “Shortly thereafter, Becki had an inappropriate personal relationship with this person, something in which I was not involved — it was nonetheless very upsetting to learn about. After I learned this, I lost 80 pounds and people who saw me regularly thought that I was physically unwell, when in reality I was just balancing how to be most supportive of Becki. … I was and have always remained fully devoted to Becki and we have shared many private conversations to better understand and support each other and to strengthen our marriage. … We extended the spirit of forgiveness to this man with respect and kindness.”
However, Falwell wrote, family members of the man told him that “he has periodically demonstrated emotionally unstable behaviors with some destructive tendencies, seemingly in response to his inability to achieve his professional goals. Based on information from other sources, we believe that he may have targeted other successful women in similar ways.
“While we tried to distance ourselves from him over time, he unfortunately became increasingly angry and aggressive. Eventually, he began threatening to publicly reveal this secret relationship with Becki and to deliberately embarrass my wife, family and Liberty University unless we agreed to pay him substantial monies.”
Falwell wrote that the threats continued over the years, with the man fabricating “outrageous” claims and doing so through a “specific member of the media who has continued to badger us, as well as other members of the media, regarding the false claims about the nature of the relationship based on the individual’s misrepresentations. Over the course of the last few months this person’s behavior has reached a level that we have decided the only way to stop this predatory behavior is to go public.”
Falwell does not name the member of the media in his statement, but Liberty alumnus Brandon Ambrosino has written extensively for Politico about Falwell’s relationship with Granda and other controversies involving the Liberty president, including a story last week about his family’s use of NASCAR mogul Rick Hendrick’s yacht for vacations. Last year, The News & Advance reported that Falwell’s lawyers had sent a cease-and-desist letter threatening to sue Ambrosino.
“The trauma of this experience has brought us to a very challenging point in our lives, but we are strong, our faith in Christ is greater than ever, and with His help and with those in the community who we love and who appreciate the impact of forgiveness, we will get through this,” Falwell wrote. “We ask for your prayers and support.”
Danny Robinson has been promoted to be The Martin Agency‘s first Black chief creative officer, replacing Karen Costello, the first woman to hold the job, the Richmond-based advertising agency announced Wednesday.
Costello is returning to Deutsch LA as its CCO, and Robinson previously served as Martin’s chief client officer, his position since 2018. His background is in copywriting, and he founded Vigilante, a New York-based agency that orchestrated the giveaway of 276 Pontiac G6 cars on “The Oprah Winfrey Show,” which produced the familiar phrase, “You get a car!”
He also was part of award-winning advertising campaigns for Johnnie Walker Black Label, Major League Baseball, Snapple and Heineken, and Robinson was hired by Martin in 2004, where he oversaw the agency’s winning bid for Walmart. He also has worked on Chevrolet, Hanes, Tic Tac and Oreo campaigns. At the start of his career, Robinson began as a brand manager for General Foods.
“I’m a huge fan of Danny,” Costello said in a statement. “Not only is he creatively ambidextrous, which is extremely valuable, but he’s also just a really good human who knows the importance of focusing on people and culture.”
A graduate of Hampton University and Clark Atlanta University, Robinson spends his off hours as a standup comedian, a painter whose works have been shown in the Virginia Museum of Fine Arts, and board chair of the Feed More food bank in Richmond.
The Martin Agency’s clients include CarMax, Old Navy, Buffalo Wild Wings and UPS.
Richmond-based Dominion Energy Inc. recorded more than $500 million above authorized earnings levels from 2017 to 2019, according to a State Corporation Commission report released Tuesday.
The report, which was sent to Gov. Ralph Northam and the House and Senate labor and commerce committee chairs, says that the publicly traded Fortune 500 utility earned $300.8 million in 2017 and $277.3 million in 2018 over the state-determined 9.2% return-on-equity base.
In 2019, however, the utility was below the authorized limit, with 8.03%, or $75.4 million less than the ROE base — mainly because of the closure of generation facilities and costs related to coal byproducts management at four facilities.
Dominion’s combined earnings over the limit during the three-year period are $502.7 million, the company reported to the SCC.
Dominion’s return on equity is the allowed profit for its shareholders’ investment in the utility’s equity. Last November, the SCC rejected Dominion’s proposed increase of the return on equity base from 9.2% to 10.75%.
According to the report, a typical residential Dominion customer pays $26.10 (28.81%) more per month now than in 2007, with the average residential monthly electric bill totaling $116.69.
Advocacy group Clean Virginia called Tuesday for legislative reforms to prevent overcharging by the utility. “Virginians — particularly Black and brown households — were already struggling with high energy burdens and rising electricity bills before the COVID-19 crisis and economic fallout,” Executive Director Brennan Gilmore said in the statement. “Lawmakers can easily soften the blow for families and small businesses by requiring Dominion Energy to shoulder its fair share of COVID-related utility debt from the half a billion dollars it has already taken from Virginians and return the rest of it to the people and businesses they overcharged.”
The SCC currently does not have full authority to refund the money to customers or lower base rates to prevent overcharges, Clean Virginia added. The SCC will be able to set a base rate and refund money to customers in 2021 after a more comprehensive survey, including 2020’s ROE base results.
During the regular General Assembly session, the Fair Energy Bills Act introduced by Del. Lee Ware, R-Powhatan, and Del. Jerrauld C. “Jay” Jones, D-Norfolk, would have allowed the SCC to lower Dominion’s base rates by more than $50 million, which is currently not permitted by law, and would let the SCC refund 100% of overcharges to customers, instead of 70%, the current ceiling. The SCC also would have been able to use “cost of equity” analysis to set the allowed profit level, instead of “peer group” analysis, which is currently used.
However, a Senate panel killed the bill in March after it cleared the House on a 77-23 vote.
Dominion released its own statement in response to the report: “As always, we will review the SCC’s latest report on earnings, while recognizing that it represents an interim assessment. We are looking forward to next year’s comprehensive review by the SCC of customer rates and our performance, a so-called ‘triennial review’ that will cover the 2017 to 2020 period. That proceeding will present an opportunity for a review of the investments we have made on behalf of our customers. We’re proud of our record and of the changes underway at the company. We have kept rates well below the national and East Coast averages and maintained a strong record of reliability, while building the nation’s leading clean-energy portfolio.”
In 2015, the state enacted a law that froze base rates for Dominion and Appalachian Power for two years, which allowed both utilities to save earnings they ordinarily would have to return to customers. In 2017, with the Trump administration in office and subsequent changes to the federal energy taxation policy, the state began a three-year review process, which is currently in place, including allowing credits for the utility’s investment in wind, solar and other renewable energy technology.
It’s too early to tell yet, but so far in 2020, Dominion has recorded $630.7 million in costs related to closure of three power stations in Chesterfield County and Yorktown in the first quarter of the year and $116.6 million in unpaid electricity bills as of June 30 since the state placed a moratorium on disconnections in March, the SCC reported last week. A spokesman said the utility is ready to extend the moratorium to October if regulators allow it.
According to the report, Dominion would owe 70% of the excess funds to its customers — currently $256.8 million, although the utility would be allowed to subtract $199.9 million invested in the Coastal Virginia Offshore Wind project and grid transformation work. That leaves approximately $57 million in refundable income, but that number could change by next year’s comprehensive report.
The state health commissioner and the Virginia Board of Health have filed a motion for an injunction against a seafood restaurant in Hanover County that refuses to close in spite of multiple public health orders alleging it is in violation of the state’s COVID-19 rules.
Calabash Seafood has been “serving customers food without a license” for the past three weeks, reads a motion filed by Attorney General Mark Herring’s office Monday in the Hanover County Circuit Court. The state asks the court to “order that the defendants close the restaurant while the restaurant license is suspended … until the matter is decided on the merits.”
According to the motion, the Hanover Health Department received “numerous complaints” related to employees not wearing masks in areas with customers and not requiring patrons to wear masks when they were not eating or drinking. Also, the restaurant did not close the bar area and other areas where people congregate, which is required by State Health Commissioner Norman Oliver’s and Gov. Ralph Northam’s public health and executive orders.
Herring’s office, in a statement Monday, said the Mechanicsville restaurant has received a complaint that the manager of the restaurant “did not take the threat of COVID seriously, saying that the ‘health department could not tell him what to do,’ that ‘the servers did not need to wear face coverings,’ and that he ‘did not see the need for face coverings, claiming that COVID-19 was pretty much over.'”
The restaurant’s license was suspended July 27 after multiple inspections, the AG’s office said, and a second notice of license suspension took place Aug. 13.
In a video posted by Republican gubernatorial candidate Amanda Chase on Facebook last week, Calabash Seafood owner Dennis W. Smith said, “It’s going to take a court order” to close the restaurant. Chase was criticized for refusing to wear a mask at a Harrisonburg restaurant and threatening to sue its owners after they enforced their mask policy.
Other restaurants in the state have had their licenses suspended for not following the state’s policies intended to stem the COVID-19 pandemic, but none have remained open.
Smith said Monday evening he had no comment, and cook Richard A. Shearin, also named as a plaintiff, was not available for comment. An employee at Calabash said the restaurant planned to open Monday as usual.
A hearing has been set Sept. 1 in Hanover County Circuit Court.
A privately funded Black Lives Matter mural stretching nearly 200 feet long and two feet high will be painted in downtown Richmond near the Virginia State Capitol grounds, Venture Richmond announced Monday.
Approved unanimously by the city’s Public Art Commission and Planning Commission, the project will be spearheaded by Richmond artists Hamilton Glass and Ed Trask, both of whom have painted numerous outdoor murals in the city. The mural will be located on the 800/900 block of East Grace Street near St. Paul’s Episcopal and St. Peter Catholic churches and the Barbara Johns Building.
The BLM mural, like those in Washington, D.C., and New York City, will be painted on the street itself. Anedra Bourne, deputy executive director for Venture Richmond, said in a statement that the artists, the Downtown Neighborhood Association, business people and others have been working on the idea since June.
“We know there are those who will say we are late with this project,” Bourne said in a statement. “And, admittedly, we wish it could’ve happened much sooner but the process is important. There will undoubtedly be a variety of perspectives and sentiments. However, as an organization we believe that this most basic of statements — that all Black Lives Matter — deserves to be embraced. We don’t see this as a moment lost but as an ongoing, powerful movement.”
According to documents filed by Venture Richmond with the planning commission, the project would take about five days to paint, and it would start between mid-August to early September, pending city permits and approval. Bourne says the group is “pursuing plans to involve more community members and artists in the process, and the hope that rather than simply mimicking other solid yellow murals in other communities, Richmond’s will be unique.”
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