McDonald and husband receive secured bonds on new EDA-related charges

Above, Jennifer McDonald upon her booking on Aug. 23; below, Sammy North being booked into RSW about an hour before his wife. Photos RSW Jail website

After spending the weekend in jail, both Jennifer McDonald and her husband “Sammy” North received secured bonds from Judge Bruce D. Albertson late Monday morning. By 11:07 a.m. both were remanded to the custody of the Warren County Sheriff’s Office to be returned to Rappahannock-Shenandoah-Warren County Jail (RSW Jail) for processing out of the facility upon arrangement of the securing of their bonds.

McDonald and North joined Donald Poe in receiving bond from the court Monday morning. Poe was granted a $20,000 unsecured bond at a hearing convened at 8:45 a.m. He faces one new charge of money laundering.

$20,000 bond set for Poe; 10:30 a.m. hearing set for other 3 defendants

After hearing attorneys for the former EDA executive director and her spouse explain that the 14 new charges against her and three initial charges against her husband did, indeed, relate to the movement of money several years ago, Judge Albertson granted McDonald $25,000 secured bond on her new charges; and North a $10,000 secured bond on the three charges against him.
Albertson said he expected both McDonald and North to be able to meet those new bonds. He ordered neither to have contact with other EDA defendants, other than each other since they live together as husband and wife.

It became clear during the 10:30 a.m. video hearing with Judge Albertson from Harrisonburg at his home base court, that all the sealed special grand jury indictments against McDonald, North, William Lambert and Donald Poe handed down at the end of last week were new charges related to old transactions believed to involve embezzlement or the obtaining of EDA assets through false pretenses.

Donald Poe being processed into RSW on Aug. 23

Layton’s 8:45 a.m. bond hearing comment about the additional risk of flight stemming from the 14 new charges against McDonald related to the addition of what he estimated at as much as $800,000 of additional EDA assets being moved around 2017. He told the court those transactions involved obtaining wetland credits. Judge Albertson noted that in his first consideration of bond for McDonald, an amount of about $3 million in allegedly misdirected EDA assets was cited by the commonwealth, which was again represented by Bryan Layton.

In fact one conversation between Layton and the judge indicated that McDonald could be facing as much as 40 years in prison and up to $500,000 in fines on charges now faced.

Attorney comments indicated the charges against North involve a real estate transaction dating to August 21, 2015. While that transaction is believed to have involved illegally-obtained EDA assets, it was observed by McDonald’s attorney that the involved real estate was not EDA property.

It was also noted that an April 11, 2019 date tied to some of the new charges against McDonald, was supposed to read April 11, 2017.

Defense attorneys Peter Greenspun (McDonald), Frank Reynolds (North) and William Ashwell (Poe) all told the court that when their clients were informed of the new indictments Friday, they voluntarily turned themselves in at the RSW Jail.

“He went to RSW at approximately the same time as his wife, I don’t know if they went down together,” North’s attorney Reynolds told the court. Reynolds also turned his client’s passport over to the court as a proffer for bond for North.

According to Greenspun McDonald waited several hours for law enforcement to arrive to provide the paperwork for her to be processed into jail. He said she arrived at the jail around 3 p.m. As reported on Friday McDonald was processed into RSW at 6:22 p.m., about an hour after her husband. Poe was booked about 10 minutes after McDonald early Friday evening.

All defense attorneys pointed to their clients’ family and business ties to the community in arguing for bond. About a dozen Poe family members were present, including son Jason who is running for Warren County Sheriff as the County Republican Committee nominee. Three McDonald family members were present, including her mother and aunt.

McDonald was initially arrested on May 24 and twice denied bond by Judge Clifford L. Athey as a potential flight risk. Chief 26th District Judge Albertson took over EDA criminal cases after Athey withdrew to prepare for his elevation to the Virginia State Appeals Court. However Athey has continued to preside over the Warren County Special Grand Jury empanelled to investigate potential criminality tied to the EDA financial fraud investigation. Albertson indicated he would soon be naming a replacement judge for the special grand jury as Athey’s move to the State Appeals Court next month nears. Albertson also said that appointment would not be him.

Citing the special grand jury pattern of Friday indictments and its six-month extension to continue to receive evidence, Greenspun requested the court to allow his client to simply have a hearing date set on any further charges she may face, rather than continue to face weekends in jail on repetitive and interrelated charges.

While appreciating the defense argument, Albertson said he felt the newly-appointed special grand jury judge, when seated, should be allowed to make a decision on grand jury indictment processes, rather than him as the presiding criminal case judge.

McDonald was released on bond from her initial incarceration on what grew from eight to 14 charges while she was jailed for the most part in the Fairfax Adult Detention Center, on a $50,000 secured bond on July 31. Poe, initially arrested on three charges July 23, was also released on bond by Albertson on July 31.

The other EDA criminal defendant, Michelle “Missy” Henry was released on bond July 23 after twice having bond hearing delayed due to judge availability. Henry was arrested on June 24 on two felony counts related to disbursement of B&G Goods’ assets.

Of the four people arrested Friday related to the Front Royal-Warren County Economic Development Authority financial fraud investigation, only William Lambert remains jailed. Former B&G Goods registered agent and co-owner Lambert was the final of the four EDA-related defendants to appear in court Friday morning, and the only one to appear without counsel.

With no assets other than a 1994 truck to his name, Judge Albertson ruled Lambert at least temporarily qualified for court-appointed counsel. The judge set a return hearing date for Friday, August 30 at 9 a.m. for Lambert to appear with an attorney from the Public Defender’s Office. However from the judge’s comments, it appeared Lambert’s new counsel may only be seeking a bond hearing date at that time.

William Lambert following his Aug. 23 booking

Lambert, like North, was arrested Friday on two felony counts of Fraud – Obtaining Money by False Pretenses and one count of Money Laundering – Financial Transaction, proceeds from known felony activity. North and Lambert became the fourth and fifth people indicted related to the Cherry Bekaert EDA financial fraud investigation and consequent civil litigation on behalf of the EDA.

That litigation filed March 26 sought recovery of $17.6 million of EDA assets, an amount now up around $21 million.