Following Joint Closed Session with County, EDA authorizes $9-million civil settlement negotiation with former executive director

The Board of Directors met with the Warren County Board of Supervisors in a joint meeting at their Work Session on Tuesday, May 11. Following an approximately 90-minute Closed Meeting, on a motion by Greg Harold, seconded by Jim Wolfe, the EDA Board unanimously approved the following resolution:

RESOLVED, that the Sands Anderson, P.C. law firm is authorized to enter into such agreements and make such court pleadings on behalf of the Industrial Development Authority of the Town of Front Royal and the County of Warren, Virginia (“EDA”) as may be necessary to effectuate in favor of the EDA a resolution of the EDA’s claims against Jennifer McDonald, MoveOn8, LLC, and DaBoyz, LLC, which resolution shall include provisions (i) that any judgment against Jennifer McDonald, MoveOn8, LLC, and DaBoyz LLC shall be the joint and several liability of all three entities, (ii) that any judgment against Jennifer McDonald, MoveOn8, LLC, and DaBoyz, LLC shall not be dischargeable in bankruptcy, and (iii) that any such judgment be for no less than $9,000,000.

The EDA has successfully proved in civil court that Ms. McDonald and the two corporations associated with her owe money to the EDA, and by extension, to the citizens of our community. This resolution, resulting in a significant judgment in favor of the EDA, once properly approved and entered by the courts, will represent an important milestone in the EDA’s effort to recover losses it has incurred in this matter. The judgment, if approved by the courts, will not be dischargeable in bankruptcy and these defendants will be liable for it until it is paid.

The Board understands that the citizens of Front Royal and Warren County expect accountability and restitution by any and all parties who were involved in misconduct or other unlawful takings from the EDA. This resolution, with support from the Warren County Board of Supervisors, is a step forward in that direction.

The EDA Board of Directors will persist in seeking redress for losses incurred by the EDA. Just as importantly, the EDA will continue moving forward, working diligently to bring jobs and investment to Front Royal and Warren County.

The EDA Board of Directors will have their next regular monthly board meeting via Zoom on Friday, May 21, 2021, at 8 a.m.