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FOX News. 9/10: Jerry Falwell Jr.'s deals made Liberty University a juggernaut, but now they get a second look, by Barnini Chakraborty

Soon after the Rev. Jerry Falwell's son took the reins of Liberty University from his father, the religious school in the bucolic shadow of Virginia's Blue Ridge Mountains quickly became a higher education powerhouse, with a surging enrollment and an endowment that grew like a hedge fund.

But with Jerry Falwell Jr. and his wife, Becki, embroiled in a series of lurid sex and booze scandals that have already cost him his job, the Midas touch that turned a sleepy Bible college in Lynchburg into a cash cow is getting a second look. And a host of deals that lined the pockets of the Falwells and their friends may not stand up to scrutiny.

"Did Liberty do well while Jerry was in charge? Yes. Was it on the up-and-up? Hell no," a Lynchburg resident who has known the Falwells told Fox News on condition of anonymity since she still works in the area.