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EDA in Focus

And that’s not all: Carter, Murray and Glavis address EDA investigation

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From left, Dan Murray, Linda Glavis and Tony Carter at Feb. board meeting – on April 2, all three added observations on the escalating EDA forensic audit and its consequences. Royal Examiner File Photo

Today we add three more elected county officials to our record of public reactions to the escalating and seemingly never-ending story about the forensic audit of the FR-WC Economic Development Authority, its cost, revelations and consequences. Those officials are former Warren County Board of Supervisors Chairman and Happy Creek representative Tony Carter, current Chairman Dan Murray and South River Supervisor Linda Glavis. Like Vice-Chairman Tom Sayre, that trio commented on the EDA situation during their board member reports of April 2, 2019.

Carter’s input was two-pronged, first addressing a reference to his signature on documentation regarding the EDA purchase of a vacant warehouse and 14-acre property on Baugh Drive in the Stephens Industrial Park. See Related Story:

Tony Carter signed resolution for purchase of empty warehouse, costing County $25k monthly

Carter noted as the referenced story reports that the purchase was authorized by the entire board of supervisors and that it was his role as then-chairman to sign the documentation on the purchase. Carter traced the history of the property ownership and conveyed information from the EDA that there was a potential purchaser for the property that would make high-end furniture and employ veterans and disabled vets. Unfortunately, Carter noted that buyer had fallen through.

The property remains on the market with interest from several prospects having been expressed, Carter said. He noted that the business model had previously been successful in the purchase of the North American Housing property on Strasburg Road.

“The EDA purchased the property; the tenant moved in and paid the debt service. Several years later the tenant bought the property and they are still there, which brought in jobs and helped the county’s tax base. So this model has worked before,” Carter observed of the Baugh Drive transaction.

Then there’s the elephant in the room

Carter then reviewed the process leading to the expanded forensic audit of EDA financial records and called for the supervisors to “strongly request” that the EDA and its outside counsel Sands-Anderson work with the special grand jury empanelled to investigate potential criminal behavior tied to the forensic audit findings and consequent civil litigation “as long as it does not compromise any future investigations”. See Related Story:

Madden requests, Athey empanels special grand jury in EDA case

Carter may have raised an eyebrow or two when he suggested that the EDA and its contracted legal representation work, not only with the special grand jury, but also “any other relevant state and federal authorities” in support of criminal investigations related to alleged EDA asset misappropriations.

A recently trimmed Carter glances away from prepared remarks on the EDA to make sure the photographer is angling for his good side – that is your good side, right Tony? Royal Examiner Photo/Roger Bianchini

The potential that not only state law enforcement, which has been confirmed, but also federal law enforcement might be or become involved in the EDA situation has been a supposition for some due to several possibilities.

Those possibilities include: 1/ the potential of unauthorized wire transfers of money, which is a federal offense; 2/ the possibility of federal EB-5 visa funds being involved with at least two defendants named in the EDA civil litigation filed by Sands-Anderson on March 26, Truc “Curt” Tran and his ITFederal tech solutions company; and 3/ the fact of the EDA’s involvement with and ITFederal’s presence on a former federal Superfund site where about $26 million in federal clean-up and remediation money was spent.

That trifecta of potential federal areas of interest doesn’t even include the possibility that some of the minimum $17.6-million in EDA assets being sought for recovery in the civil litigation may have physically crossed state lines at some point.

“We are all aggravated by the allegations contained in this civil suit,” Carter said. See Related Story:

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

“I know I speak for my fellow members that restoring your trust will be a process and one of our highest priorities. But rest assured of this fact that this board, the EDA board, and all county staff look forward to assisting the special grand jury, state and federal agencies in this ongoing investigation,” Carter added of the escalating civil, criminal and political ramifications of the EDA forensic audit now into its seventh month at a cost of $760,000 of taxpayer money.

“For those who are innocent, this will be there exoneration. For those who have committed criminal behavior, this will ensure they will be charged, fully prosecuted, and if found guilty, sentenced for their actions that have been perpetrated on our community,” Carter concluded.

Full transparency – at some point

Chairman Murray also added to his opening call for a restoration of peace and tranquility to the community as the EDA investigation proceeds.

“We welcome this opportunity as a way to ensure to the public that the county operations do not include misfeasance of malfeasance. We welcome full transparency,” Murray stated, adding that the ongoing investigation has thus far not allowed such.

“At the advice of the EDA’s forensic accountant, law enforcement and the county attorney during the last several months we have not been allowed to fully disclose what appears to be gross fraud which may have been perpetrated against our community. The standard of confidentiality must continue … until all legal actions are exhausted.

“In the meantime I ask the community to please treat others as they themselves would like to be treated. Please consider that what you say and write about others, please seek the truth and seek the facts. And please remember to be patient during what may be a long process,” Murray concluded, giving the floor to his colleague Linda Glavis.

“Thank you, I support that,” Glavis said in seconding her chairman’s observations on continued public civility as the EDA process evolves. The South River supervisor then encouraged support and countywide attendance at her district’s upcoming Redbud Festival.

The Redbud Festival, Saturday April 27, 2019 – with spring temperatures re-approaching, that sounds like a pleasant break from audits, ongoing investigations, pending criminal charges and whatever dark specters such things portend for the community in coming weeks and months.

Browntown’s Redbud Festival Saturday, April 27, 2019 – yea, that’s a good idea. Photos/Redbud Festival website

 

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