Berlik moves to withdraw as McDonald’s civil counsel as payment in dispute

Is Jennifer McDonald’s civil case counsel on the verge of a “take the money and run” move? Hot on the heels of being cited in the amended EDA civil complaint filed on October 4 for the return of a $10,000 wire transfer made to the Berlik Law Firm, LLC on November 21, 2018 by McDonald, the Reston-based law firm filed a motion to withdraw from further representation of the embattled former EDA executive director.

Berlik, his co-counsel Jay McDannell and the firm filed the motion for withdrawal to the Warren County Circuit Court on October 9. The filing appears to be signed by McDannell.
McDonald is not contesting BerlikLaw’s withdrawal petition.

“I have been notified that my current attorneys, Lee E. Berlik and Jay M. McDannell of BerlikLaw, LLC, may file a motion to withdraw from these cases. Should they proceed to file such a motion, I want the Court to know that I consent and agree to their withdrawal,” a statement from McDonald accompanying the motion reads. The statement notes BerlikLaw’s representation of McDonald and her two real estate LLC’s, DaBoyz and MoveOn8 also named as defendants in the EDA civil litigation.

That letter consenting to the attorney withdrawal is dated July 3, 2019. In it McDonald cites the Berlik attorneys’ representation of her personally in three civil matters: the now amended EDA civil litigation seeking recovery of $21.3 million in which she is the primary figure among 15 defendants, including 10 surviving people and five related business entities; and dueling defamation suits with County Supervisor Tom Sayre.

Berlik’s most recent representation of McDonald was on September 11 in a losing cause when Sayre won a $20,000 defamation judgment from McDonald in Warren County General District Court. Well, Sayre was seeking $25,000 in damages so you might generously call it a mixed legal result.

And since July 3, McDonald has dropped her $600,000 defamation suit against Sayre.

Following the EDA’s amended civil filing of October 4, BerlikLaw’s receipt of $10,000 cited as Afton Inn legal expenses in the Cherry Bekaert report on financial fraud in EDA operations is directly addressed in the EDA civil litigation.

Across the street from the Warren County Courthouse, the Afton Inn in February prior to work stoppage after it was named as a vehicle for the misdirection of EDA assets by former Executive Director Jennifer McDonald in civil litigation filed on March 26. That alleged misdirection now includes a $10,000 payment to McDonald’s civil attorneys. Royal Examiner File Photo/Roger Bianchini

“The Berlik Law Firm has refused to return the unauthorized payment from the Warren EDA and has taken the position that the money may have been permissibly paid to that firm which it was not,” the amended EDA civil complaint states, adding of BerlikLaw’s stance, “It has further asserted that because the money has been spent on services rendered, albeit not services rendered for the Warren EDA, the Berlik Law Firm is entitled to enjoy the benefits of the stolen money.

“The Warren EDA neither knew of nor approved of this payment. It had no need for services from the Berlik Law Firm,” Sands Anderson attorneys for the EDA wrote in the amended complaint.
When the issue of the wire transfer came up in Sayre-McDonald defamation case hearings in June, Berlik told media outside the courtroom, “I don’t work for the Afton Inn.”

Inside the courtroom on June 19, David Downes as counsel for one potential witness raised the specter of the $10,000 November 2018 payment.

Downes told the court that Berlik “can’t continue to use potentially stolen funds” to pay for his representation of McDonald” adding without suggesting Berlik had previously been aware he may have been paid with stolen funds – “He’s on notice.”

The possibility of McDonald’s use of embezzled money to pay for some aspect of her civil litigation attorneys fees was initially raised by Sands-Anderson attorney Cullen Seltzer on the EDA’s behalf during a May 22 motions hearing.

“Is she using stolen money to pay her attorneys,” Seltzer asked Judge Clifford L. Athey Jr. during discussion of McDonald’s civil counsel’s request to quash a plaintiff subpoena of his client’s financial records related to her legal representation.

In explaining the request to the court Seltzer noted that the former EDA chief executive is accused of “defrauding a significant amount of money from the EDA” and wondered if some of that money was being used to fund her legal costs.

And now BerlikLaw may have to argue the legal basis for that November 2018 payment in civil court, not on behalf of McDonald, but on its own behalf.

Lee Berlik could not be reached for comment on his firm’s withdrawal as McDonald’s civil counsel, or its stance on the November wire transfer payment prior to publication.

Sayre elicits public comment on alleged McDonald embezzlement scheme