Sheriff, ITFed principal Tran, Donnie Poe named with McDonald in EDA civil suit

Aerial view of the old American Viscose Admin building where EDA headquarter are located, and apparently ground zero for an alleged conspiracy to misdirect at least $17.6 million in EDA assets. Royal Examiner File Photos/Roger Bianchini

Mark this day on your calendar – on Tuesday afternoon, March 26, the first legal hammer fell in the wake of a six-month, quarter-million-dollar-plus investigation of Front Royal-Warren County Economic Development Authority (aka Industrial Development Authority) finances.

That hammer was the civil litigation authorized by the EDA Board of Directors on March 22, following a closed session presentation of CPA consultant findings related to the audit and investigation of EDA business practices.

Nine defendants are named in the 199-point civil filing for relief seeking a minimum $17,640,446 in damages split among the named defendants, both persons and LLC’s.

Defendants named in the action filed by the Sands-Anderson law firm shortly after 2:30 p.m. Tuesday are former EDA Executive Director Jennifer R. McDonald (Front Royal); Donald F. Poe (Strasburg); Justin Appleton (Front Royal); Earth Right Energy Solar Commercial LLC, registered agent Mandy Newman (Strasburg); Truc “Curt” Tran (Great Falls, Va.); Warren County Sheriff Daniel T. McEathron (Front Royal); DaBoyz LLC, registered agent Jennifer McDonald (Front Royal); MoveOn8 LLC, registered agent Joseph F. Silek Jr. (Front Royal); and ITFederal LLC, registered agent Terry L. Fox (Burke, Va.).

In early 2018 Jennifer McDonald approached this reporter with a story about three years of slot-machine casino winnings totaling over $2.1 million to help explain a cash-rich real estate business under scrutiny by Royal Examiner Editor Norma Jean Shaw.

The introduction to the complaint states, “From at least 2016 until 2018, Jennifer R. McDonald, in her capacity as Executive Director of the Industrial Development of the Town of Front Royal and the County of Warren, Virginia (“Warren EDA”), engaged in a variety of schemes to unlawfully take money from the Warren EDA for her personal benefit. This is an action against Defendant McDonald and other confederates and co-conspirators to redress these unlawful takings and recover assets that are lawfully the property of Warren EDA.”

Cited in the civil action are EDA projects including the “ITFederal Loan; Subsequent Payments to ITFederal; Work Force Housing – Royal Lane Property Embezzlements; Afton Inn Project Embezzlements; Criminal Justice Training Academy aka Skyline Regional Justice Training Academy; Unlawful Payments Concerning Earth Right Energy LLC; and Unlawful Payment of Town and Warren County Funds for Defendant McDonald Owned/Controlled Real Estate”.

The $10-million loan from the EDA to Truc ‘Curt’ Tran and other appropriations to his ITFederal business are apparently a big chunk of the minimum $17.6 million in misappropriated funds being sought in the EDA civil suit.

The civil filing states that “Defendant McDonald has admitted to improper activities and conduct in her capacity as Executive Director of the Warren EDA, including taking monies from the Town of Front Royal, Virginia (“Town”) and Warren County, Virginia (“County”) bank credit facilities for several purposes other than which they were intended.

“On December 20, 2018, Defendant McDonald admitted in an email communication to being liable for $2,700,000 in Warren EDA losses. This admission undervalues the extent of her theft and unlawful distributions, but is one indication of her consciousness of guilt in her conduct. ”

December 20, 2018 is the day McDonald resigned by email as the EDA Board of Directors was poised to go into a second closed session within a week to discuss her job performance.

Lengthy documentation, as stated above 199 points worth, is cited to describe the alleged scheme to misdirect EDA monies to other uses and pockets.

Neither then-EDA Chairman Greg Drescher, nor Jennifer McDonald appeared happy fielding questions about the workforce housing project at a joint EDA-county board work session on June 5, 2017. The date was coincidentally between two alleged crimes, a reported May 18 EDA office break in and a reported June 15 vandalism at McDonald’s home.

The method of relief for the plaintiff for the $17.6 million-plus in damages suffered by the IDA/EDA is cited as “Rescinding the … unlawful, and/or fraudulent transactions referenced in the complaint; Imposing all fees, costs, and expenses associated with the rescission against the Defendants jointly and severally; granting the $17,640,446 minimum judgment amongst the Defendants; Ordering the Defendants to return all Warren EDA property, real, personal, and financial, to the Warren EDA” and “Awarding the Warren EDA at least $1,000,000 in punitive damages jointly and severally against the Defendants” as well as attorneys fees “further relief deemed necessary in the interest of justice, fairness and equity.”

And you may have wondered by EDA Board Chairman Gray Blanton, who took over the chairmanship following Greg Drescher’s resignation last August as these developments began coming to light, has seemed a tad frustrated, tense and anxious in recent months for the result of the EDA audit investigation to come to light. An attempt to reach Blanton for comment prior to publication was unsuccessful.

Current EDA Board Chairman Gray Blanton has finally gotten the long-anticipated final report on EDA finances – but the news, as suspected, wasn’t good.

Sands-Anderson attorney Dan Siegel, center during May 2018 sign off on Valley Health loan, signed the cover letter to Circuit Court Clerk Darryl Funk with Tuesday’s civil filing on behalf of the EDA.

Sheriff McEathron behind his desk at the county Public Safety Building.  He announced last week that he would be retiring early, effective May 1, 2019. / Royal Examiner file photo.