Cost of EDA audit skyrockets from $260,000 to $760,000 – and that’s not all

FRONT ROYAL – Following an hour-and-a-half closed session discussion Tuesday morning, April 2, the Warren County Board of Supervisors upped authorization on the cost of the forensic audit of Economic Development Authority finances from a quarter million dollars to three quarters of a million dollars.

The new total of $760,000 either spent or now authorized to be spent exploring suspected criminal misappropriation of EDA assets came from an increase of $300,000 authorized for payment to newly-identified forensic auditor Cherry Bekaert, added to a previous payment of $160,000; and a $200,000 hike to the $100,000 authorized to the Sands-Anderson law firm that his handling the EDA’s civil litigation resulting from the discoveries of Cherry Bekaert.

As previously reported the Sands-Anderson civil filing of March 26 on behalf of the EDA seeks reimbursement of a minimum of $17.6 million from nine defendants.

Those defendants, in addition to former EDA Executive Director Jennifer McDonald and her two real estate companies DaBoyz and MOVEON8, include Warren County Sheriff Daniel McEathron who was in the real estate business with McDonald; Strasburg-based energy and solar installation company Earth Right Energy Solar Commercial LLC and its principals Donald Poe and Justin Appleton; and Truc “Curt” Tran and his ITFederal tech solutions company that was highly-touted by retired U.S. Congressman Robert Goodlatte, R-6th, as a jobs (600-plus) and investment ($40 million) goliath that would spearhead economic redevelopment at the former Avtex federal Superfund site’s planned Royal Phoenix Business Park.

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

Both McEathron and Earth Right Energy and its principals have issued statements denying any wrongdoing related to the movement of EDA funds.

Tom Sayre, right, and Archie Fox received enough explanation of the need for an additional half-million dollars funding to support the EDA audit and civil litigation that they made the motion and second, respectively, to authorize that funding.

The unanimously-approved motion to authorize the increased audit payments was made by Tom Sayre and seconded by Archie Fox. Sayre and Fox had previously aligned in demanding additional information prior to any further authorization of County contingency funds for the EDA investigation. Asked about that demand later, Fox indicated additional information had been provided concerning the necessity of the additional expenditures.

In addition to a Sands-Anderson representative, present for the Tuesday morning closed session discussion of accounting and debt services related to EDA finances in recent years was Robert T. Mitchell Jr. Mitchell is a Winchester attorney contracted by the County to represent its legal interests in matters where County Attorney Dan Whitten is conflicted by his representation of the EDA.

In a brief conversation with the media following the closed session Mitchell, of the law firm of Hall, Monahan, Engle, Mahan & Mitchell said he had only been involved in a couple of previous discussions in his role with Warren County.

So it should be a while before Mitchell’s fees approach the $300,000 to $450,000 mark – as British comedy troupe Monty Python musically suggested in their film “The Life of Brian”, “Always look on the bright side of life.”

A dark cloud

More seriously, the specter of the EDA situation and the potential of criminal misdirection of millions of dollars of EDA, Town or County assets punctuated Tuesday morning’s meeting from start to finish. Prior to the pledge of allegiance that opens municipal meetings, Board Chairman Dan Murray asked those present to stand for a moment of silence “and in your own way ask for a return of peace and tranquility to this beautiful community.”

The meeting then progressed into statements, accusations, explanations and defenses from members of the public and county supervisors. Stay tuned for coming related stories and links to Royal Examiner video of those public and county official comments.