The Falkirk Center, launched by Falwell and Charlie Kirk, is hurting the evangelical Christian school's reputation, some students say.
The ex-president of the evangelical Christian university stepped down in August amid reports of a sex scandal.
Falwell, who was toppled by scandals this summer, has filed a lawsuit against the evangelical university claiming defamation and breach of contract.
HuffPost obtained an August 911 call that described the former Liberty University president as intoxicated and injured.
Becki Falwell told the operator that her husband had cuts on his face from falling after he’d been drinking.
Officials said the wide-ranging inquiry will explore financial, real estate and legal matters related to its former president.
Allegations of racism, bullying and shady business deals didn't bring the ex-Liberty University president down. In the end, it was the sex stuff.
The move by the evangelical leader and Trump loyalist comes after reports about his sex life led him to take a leave of absence.
Falwell could return in some capacity to the evangelical Christian institution his father founded, people close to Liberty University claim.
The evangelical Christian personality had faced pressure to resign after he posted a photo on Instagram in which his pants were unbuttoned and unzipped.