Donald F. Poe jailed on EDA-related fraud charges

Donald Fears Poe was booked into RSW Regional Jail shortly before 4 p.m. Tuesday, July 23, on three charges believed tied to the EDA fraud investigation. Photo/RSW website

According to the RSW Regional Jail website, Earth Right Energy (ERE) principal Donald F. Poe was booked into the facility shortly before 4 p.m., Tuesday afternoon, July 23. When Royal Examiner made the discovery of Donald Fears Poe’s booking at the Rappahannock-Shenandoah-Warren County Regional Jail the charges were not yet posted on the website.

However by 4:30 p.m. three charges were listed without further detail. They are two felony counts of Obtaining Money by False Pretenses and one count of Perjury. Poe is being held without bond and no date on a bond hearing was posted on the jail website at publication of this story. Poe was called as a witness before the Special Grand Jury empanelled to investigate criminal activity related to the EDA fraud investigation and civil litigation.

While no detail on the indictments was available on the RSW website, the charges are believed related to the investigation into fraudulent financial activity within operations of the Front Royal-Warren County Economic Development Authority.

Poe’s charges come one day after jailed former EDA Executive Director Jennifer McDonald was served with two new felony indictments related to that EDA financial fraud investigation. Those two counts date to the first three weeks of September 2018, the first count between September 1 and 22, the second count between September 18 and 20.

McDonald criminal attorney: ‘This IS going to trial’

Count One filed against McDonald on July 22 alleges that on or about those dates, “Jennifer R. McDonald did unlawfully and feloniously conspire with another to obtain by false pretense United States Currency having a value of more than $500 belonging to the Front Royal Warren County Economic Development Authority, with the intent to defraud …”

Count Two of the new charges against McDonald adds that “on or between” September 18 to 20 McDonald did “wrongfully and fraudulently use, dispose of, conceal, convert, or embezzle property belonging to the Front Royal Warren County Economic Development Authority with a value of $500 or more, which she had received for the benefit of said (FR-WC EDA), by virtue of her office, trust, or employment …”

McDonald now faces a total of 14 indictments related to the EDA fraud investigation.

Poe and his Earth Right Energy partner Justin Appleton and the LLC were named as three of the nine defendants in the EDA civil lawsuit filed March 26, seeking return of approximately $20-million in misdirected EDA assets.

According to investigative accounting firm Cherry Bekaert’s summary of its findings, “Approximately $841,000 was paid to Earth Right Energy by MCDONALD for solar equipment and installation that was never received.”

Dates of these alleged fraudulent activities are listed as between July 10 and September 19, 2018, in the Cherry Bekaert working papers. A $10,172 check dated 9/4/18 and a $409,812 wire transfer dated 9/19/18 are included in a list of transactions from the EDA Operating Account to ERE for work done installing solar panels at the 404 Kendrick Lane EDA office complex.

In defense motions attorneys for ERE, Poe and Appleton have countered that some of the overpayments have been returned and that the Kendrick Lane work was, in fact, largely accomplished.

This story will be updated as further information becomes available.