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EDA in Focus

Dropping of EDA criminal cases a prosecution tactic, not vindication



The criminal prosecution of EDA defendants has stopped – for now, due at least in part to the prosecutorial decision to begin issuing indictments before the special grand jury completed its investigation. Royal Examiner File Photos/Roger Bianchini

In a statement emailed at 12:47 p.m., Friday, April 17, Front Royal-Warren County Economic Development Authority criminal case Special Prosecutor Michael Parker informed the media that all criminal charges against the four people indicted by the EDA Special Grand Jury related to the EDA financial scandal would be dropped without prejudice. A hearing on those indictments has been scheduled for Friday afternoon.

“Today Judge Albertson will sign orders of nolle prosequi with respect to all criminal matters that were brought as a result of the special grand jury investigation. This applies to all defendants and all counts. As with Donnie Poe, these are dismissals without prejudice. That means the same charges, and more charges if appropriate, can be brought at any time in the future,” Parker wrote.

Donald Poe after an earlier court hearing

Those defendants are former EDA Executive Director Jennifer McDonald, her former Administrative Assistant Michelle Henry, McDonald’s husband, Samuel North, and former B&G Goods principal William Lambert, as well as Poe, who had his charges dismissed without prejudice in January as a perjury trial date was approaching.

“I assure you I am not pleased about this. I also assure you this is not the end,” Parker continued in his written statement, adding, “However, while it is my duty to bring justice to the guilty, it is also my duty to be just and ethical in my conduct at all times, to everybody. That includes people who have been accused but have not yet been found guilty. At the current time, I am unable to satisfy certain basic obligations I have to the defendants, which have existed since before I was appointed on the case. I cannot ethically keep this status quo. In fact, if I tried to keep the cases active, I’d run the risk of a judge at some point, dismissing them with prejudice, so that I could not bring them back.”

Jennifer McDonald was first charged about a year ago, as her financial felony indictments gradually climbed to over 30. At least, for now, all those charges have been dropped.

Contacted by phone following the release of his statement, Parker said it was “overwhelmingly likely” that some criminal charges would be refiled when he and the Virginia Court and grand jury system were not operating under restrictions imposed by the COVID-19 pandemic emergency response. He pointed out some of the criminal charges were filed a year ago, with COVID-19 (Coronavirus Disease-2019) impacts potentially slowing court processes for months, if not a year into the future.

However, while he observed that COVID-19 cases were “exploding” in Harrisonburg and Rockingham County where he and EDA case Judge Bruce D. Albertson are based, Parker stressed that the COVID-19 impacts were not the primary factor at issue in his decision.

Parker was appointed special prosecutor in late November 2019 following the withdrawal of original EDA Special Grand Jury prosecutors Brian Madden, who left to a judgeship appointment, and his Assistant Commonwealth’s Attorney Bryan Layton, who lost the November Commonwealth’s Attorney election to John Bell. Bell and his entire staff recused themselves from all EDA cases due to past or continued professional or personal connections to some EDA defendants.

And as been previously noted, the investigation into EDA finances and the consequent civil and criminal investigations and filings have generated an estimated million pages of documentation.

“This is a protective measure to keep these charges viable,” Parker said in support of his written statement. That statement also addressed the special grand jury process begun about a year ago, and twice extended for six months.

“This has nothing to do with the special grand jury. Their work has been tireless, diligent, and unfortunately thankless,” Parker wrote, observing, “Their excellent work will continue when it is safe to return, and appropriate charges will be brought when they conclude. If I had been appointed to this matter from the very beginning, this is the procedure I would have followed anyway: the grand jury investigates, the grand jury finishes investigating, the grand jury makes recommendations, and I choose what to prosecute.”

Parker fell short of criticizing the previous prosecutors leading the EDA grand jury.

“I would have proceeded differently,” Parker said of the special grand jury’s process prior to his arrival of issuing rounds of charges at intervals as their investigation proceeded. “I’m not laying any blame on those who came before me. They may have had a plan had they continued with the grand jury. However, I would have proceeded in the more traditional manner and brought the charges after the investigation had concluded.”

“I have a legal obligation not to keep people on the hook indefinitely,” Parker observed of the prosecutorial situation he found himself thrust into about 4-1/2 months ago.

So while now “off the hook” criminally, if not civilly, the quintet of now-former EDA criminal defendants are aware their new-found situation may not last forever. McDonald, Henry, Poe, North, and Lambert are all also named in the EDA’s original $21.3 million amended civil litigation against the former EDA executive director and 14 co-defendants.

As reported previously, that litigation was recently expanded by the addition of a second civil action against nine new defendants seeking an additional $4.45 million.

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EDA settles civil claim against McEathron estate for $90,000



Following an hour-and-thirty-five-minute closed session on a variety of topics that opened its monthly meeting of October 23, the Front Royal-Warren County Economic Development Authority Board of Directors approved a motion agreeing to a settlement with the estate of late Warren County Sheriff Daniel McEathron.

The settlement amount agreed upon between the EDA and McEathron’s widow and two adult children is $90,000. McEathron was linked to the EDA financial scandal due to his partnership in former EDA Executive Director Jennifer McDonald’s DaBoyz LLC real estate company. In the EDA’s civil litigation initially filed in March 2019, McDonald is accused, among other things, of unauthorized moving of EDA assets to her own benefit through her real estate companies DaBoyz and MoveOn8. Still Sheriff at the time, McEathron along with McDonald and the two real estate companies, were on the initial list of civil case defendants.

Sheriff Daniel McEathron – File Photo/WCSO website

After taking early retirement effective May 1, 2019, just over a month after being named a co-defendant in the EDA civil litigation, the county’s long-time sheriff was found dead on his Bentonville property 28 days later, May 28, from an apparent suicide. Some questions about the death arose after Sheriff’s Office personnel, ostensibly alerted by McEathron to his planned suicide by phone, removed the body from the scene where it was discovered in proximity to an expended firearm before the Virginia State Police, the EDA criminal case investigating agency, was notified of the death.

On Friday, EDA Asset Committee Chairman Greg Harold, who made the motion to approve, addressed the McEathron Estate settlement prior to the vote.

“Mr. Chairman, I want the community to know that the EDA has negotiated in good faith for this settlement for a long time. This is something that we’ve taken very seriously; this is something that we have called back and forth with, with our attorneys and the estate’s attorneys. While we feel there are certain risks and rewards with these situations, I think the EDA is comfortable at this time that we have done the best that we can for the community and that it’s time to put this matter behind us as the motion is written,” Harold said.

EDA Asset Committee Chair Greg Harold, pictured during Friday’s ZOOM meeting, recounted the process leading to the settlement with the estate of late Sheriff Daniel McEathron. Royal Examiner Photos by Roger Bianchini

Thank you for that,” Board Chairman Jeff Browne responded. There was no other comment prior to the vote on Harold’s motion, seconded by James Wolfe, which then passed by a 4-0 margin of the members remaining after the closed session, the above three and Tom Pattison. Jorie Martin and Melissa Gordon were present for the 8 a.m. convening of the meeting into closed session but had left to other commitments prior to the closed session’s 9:45 a.m. conclusion.

The motion on approval of the settlement read into the record by EDA Administrative Assistant Gretchen Henderson states in part, “Whereas the Front Royal-Warren County EDA has certain claims against Daniel McEathron; Whereas the EDA and McEathron’s heirs desire to resolve any claims that may exist between them; Now therefore be it resolved the chairman and the secretary of the Front Royal-Warren County EDA Board are authorized to enter into an agreement … (with those heirs) for the purposes set forth in this resolution which agreement shall provide for the payment of $90,000 dollars to the EDA …”

The motion adds that if any FOIA request are received by the EDA related to the settlement, McEathron’s widow or her attorneys will receive notice of those requests having been made.

As initially reported by former Royal Examiner Editor Norma Jean Shaw, McEathron and McDonald’s first transaction in DaBoyz dated to October 2016 and the pair purchased a total of $2.8 million of real estate between then and 2019. The LLC was involved in a number of transactions cited in the EDA civil litigation filed to recover allegedly misdirected assets, including a mysterious one in which a property was bought and sold back to the owner a month later at a loss of $600,000.

January 2018 Royal Examiner file photo of Jennifer McDonald in her EDA office displaying tax receipts she said indicated winnings at Charles Town’s Hollywood Casino. Coincidentally, the blue star on her chair is the logo of her favorite football team, the Dallas Cowboys from whom the real estate LLC ‘DaBoyz’ name was taken.

A number of McDonald and her two LLC’s existing properties were frozen by the court early in the civil case process. However, civil claims against McDonald assets have been complicated by her recent filing of bankruptcy, which put her assets under control of the Harrisonburg-based bankruptcy court.

The EDA civil litigation has grown to 24 human and business entity co-defendants, with total claims, actual and punitive, of about $25 million dollars. And as previously reported, the Harrisonburg Special Prosecutor’s Office has turned the criminal investigation into the EDA financial scandal over to the U.S. Western District of Virginia federal prosecutor’s office.

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EDA approves short-term lease on Baugh Drive during Strategic Planning weekend meeting



The EDA Board of Directors met, via Zoom, Friday, and Saturday, October 9-10. There was one item of new business before the board. On a motion by Jorie Martin and seconded by Greg Harold, the Board of Directors unanimously approved a short-term storage lease with ECOMNET for use of 426 Baugh Drive warehouse building.

File photo from October 2019 building tour with EDA.

The remainder of the evening, as well as the full-day Saturday, was devoted to the process of updating the EDA Strategic Plan. The board, along with EDA staff, invited members of the community and Board of Supervisors to share their insights on the role the EDA can play in improving the economic health of and shaping the economic direction of the Front Royal Warren County community.

Attendees included Walt Mabe and Delores Oates, Warren County Board of Supervisors; Ed Daley, Interim County Administrator; Melissa Chapman, President, Ninth Way Solutions; Jeanian Clark, Vice President of Workforce Solutions and Continuing Education, Lord Fairfax Community College; Scott Jenkins, owner of Mountain Home B&B; Chris Laurence, Realtor; Dee Sparger, Outreach Coordinator, Front Royal Presbyterian Church; and Kelly Sprague, owner/manager Blue Wing Frog restaurant.

EDA Board Director Jim Wolfe facilitated the program. The goals of this event were to begin to articulate a vision and mission statement for the EDA, plus develop a list of objectives that the EDA can accomplish within the next five years. While the EDA Board, staff, and participants represented diverse professional backgrounds, all involved share a common passion for this community and a hopeful outlook for the future.

Chair Jeff Browne stated, “A lot of good ideas came out of the sessions that give us terrific ideas to consider as we move forward. There was a strong consensus on important ideas, like Town-County cooperation on a common vision for our community.”

The Board of Directors is proud to have begun this community conversation and look forward to fine-tuning the plan in the coming weeks.

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‘This is BIG’ – EDA Chairman reacts to news feds handling EDA criminal investigations



At 12:03 p.m., Thursday, October 8, Front Royal-Warren County Economic Development Authority Administrative Assistant Gretchen Henderson forwarded a press release from Rockingham County Commonwealth’s Attorney Marsha Garst to the media regarding the status of her office’s investigation of potential criminal charges related to the EDA financial scandal and resultant civil litigation.

As stated in that release posted on the Royal Examiner website earlier this afternoon, Garst and her appointed EDA prosecutor Michael Parker, a specialist in white-collar crime, came to a decision to hand their investigation over to the Western District of Virginia U.S. Attorney’s office in Harrisonburg in late February of this year.

Both FBI and VSP were on hand for April 16, 2019, removal of evidence from the EDA office regarding alleged embezzlement and asset misdirection by former EDA Executive Director Jennifer McDonald and thus far civilly accused co-conspirators. Royal Examiner Photos by Roger Bianchini

“Our primary goal with the prosecution is to assure a just outcome. Mr. Parker did an excellent job of assessing the case and putting the evidence together. In doing so, it became apparent that federal prosecutors would be able to gain the best outcome,” Garst wrote in her release dated October 7, continuing to note the late February turnover of the case to the federal prosecutor’s office in Harrisonburg.

“It was explained that my office cannot comment on the case further or jeopardize any potential federal prosecution. I want to assure the citizens of Warren County that my office is dedicated to seeing justice done. In light of an ongoing criminal action, I cannot provide any further information,” Garst concluded, referencing further inquiries to Western District U.S. Attorney’s Office Public Affairs Specialist Brian McGinn.

While anticipating a similar reply to Garst’s “no further information” qualifier, Royal Examiner did reach out to the federal prosecutor’s office to see if there were any clues on timelines on decisions that might be made public. And in a very quick reply to our emailed query, McGinn noted as we predicted, “As per DOJ policy, we cannot confirm or deny the existence of an ongoing investigation.”

Perhaps the judicial system is running silent, but deep on the EDA criminal front, like a submarine tracking its prey above the surface.

Garst’s release acknowledging the change in prosecutors from the state to the federal level in the EDA financial scandal criminal investigation over seven months ago comes just nine days after the Front Royal Town Council’s aggressively worded September 28th Resolution “demanding justice” condemning the lack of action on the EDA criminal prosecution front by the Rockingham prosecutor’s office, and Parker in particular.

We contacted the author of that Resolution, Interim Town Manager Matt Tederick who coming out of a meeting had not seen the Garst press release. Informed of its content, Tederick said, “Good news – mission accomplished,” in that a response containing some new information on the EDA criminal investigation’s status had been received.

“I’m sure there’s a rationale and a reason,” he added of the previous silence from the state special prosecutor’s office. “But when the public trust has been violated to this degree, the public deserves some assurance that they are still pursuing the case.”

Tederick noted that confidential information was not being sought in the Town resolution approved by a 5-1 vote, Thompson dissenting, on September 28, just that the case had not gone cold and been abandoned.

As a masked Matt Tederick listens, Lori Athey Cockrell reads a statement into the Sept. 28 council meeting record regarding her perspective on the EDA business at hand.

But as noted in our story “Town targets Special Prosecutor’s Office over EDA prosecution delays” it appears the Town pursued its Resolution initiative without any prior communications with the Rockingham prosecutor’s office.

That apparently was not the case with an inquiry launched by the EDA, according to Front Royal-Warren County Economic Development Authority Board of Directors Chairman Jeff Browne.

Having received Garst’s press release through the EDA, we contacted Browne about it. Browne indicated an EDA inquiry about the criminal case status through the EDA’s civil litigation attorneys was begun about a week before the Town resolution was publicly approved.

Browne said he believed local attorney and “B.E.E.R. Party” principal David Downes launched a separate inquiry to Garst’s office as well. Downes publicly criticized the Town Resolution’s message and tone in public comments at the September 28 council meeting prior to the vote on its approval.

Local defense attorney David Downes was critical of the message delivered by the proposed Town resolution on the pace of EDA criminal prosecutions at the Sept. 28 meeting. He then undertook a different path toward seeking information on the EDA criminal case status.

Contacted about the County’s knowledge of the origins of Garst’s press release, Interim County Administrator Ed Daley said the County had inquired about the status of the Rockingham prosecutor’s EDA investigation through State Senator Mark Obenshain’s office. It was through Obenshain’s office Daley indicated County officials became aware yesterday of Garst’s press release that may have first been circulated locally in the Harrisonburg-Rockingham County area.

Regardless of who, how, or why – the consensus is that the information that the case is active and in federal prosecutors’ hands is welcome.

“This is big – from our standpoint, it is really good news,” EDA Board Chair Browne enthused. “This shows that it is still on prosecutors’ radar. The people of Warren County deserve justice. And we want to see anyone there is evidence of involvement prosecuted for it.”

Of the EDA inquiry, Brown observed that he kept hearing that nothing was going to be done regarding criminal accountability for the at-this-point still alleged criminal misdirection of EDA, County and Town assets – “It made me mad and I wanted to let people know we’re still interested in achieving justice,” Browne said of the impetus for the EDA’s inquiry through its legal counsel to the Rockingham prosecutor’s office.

Some people have been working toward cooperation on the EDA legal front longer than the final weeks before Election Day. Here, newly elected Mayor Tewalt promises cooperation on his part in December 2019, as Jeff Brown, standing in the red shirt, Ed Daley, dark shirt seated left, Supervisors Vice-Chair Cheryl Cullers, behind Tewalt, among others listen. Ten months later have Tewalt’s council colleagues caught up to the idea?

And while the nature of the inquiries may have been different, Browne said he looked at it as a positive that both involved municipalities and the EDA were on the same page in seeking assurances that criminal accountability was still on the legal table at this point.

“We’re in this together, we should be working together,” he said of the Town, County, and EDA.

Perhaps another small step toward increased cooperation, as opposed to increased hostility and litigation, as this community moves forward toward an outcome, if slowly in a complex legal setting.

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Rockingham Prosecutor’s Office turned EDA criminal investigation over to U.S. Attorney’s Office



The Front Royal Warren County EDA and Warren County officials, through the EDA’s attorney in the civil case, approached the Rockingham attorney two weeks ago to urge that office to reinstate the criminal charges in the EDA embezzlement case. The attached response is a press release from Commonwealth’s Attorney Marsha Garst.

My office was appointed to prosecute potential crimes occurring in Warren County. I authorized one of my most skilled prosecutors who specializes in white collar crimes, Michael Parker, to assist with the case. Our primary goal with prosecution is to assure a just outcome. Mr. Parker did an excellent job assessing the case and putting the evidence together. In doing so, it became apparent that federal prosecutors would be able to gain the best outcome.

Accordingly, working with our federal partners, we referred the matter to the United States Attorney’s Office for the Western District of Virginia in late February of 2020. It was explained that my office cannot comment on the case further or jeopardize any potential federal prosecution. I want to assure the citizens of Warren County that my office is dedicated to seeing justice done. In light of an ongoing criminal action, I cannot provide any further information.

Any further questions in this case should be referred to Brian P. McGinn, Public Affairs Specialist, of the Western District United States Attorney’s Office at (434) 295-8672.

Thank you,
Marsha L. Garst

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EDA unveils new logo featuring sunrise, logistical and transportation advantages



The Board of Directors and Executive Director Doug Parsons are pleased to introduce the new Front Royal Warren County EDA logo.

Chair Jeff Browne and EDA staff worked with Mike Shotton, of Shotton Design, for several months on the design. The sunrise on the horizon is a feature which reflects a positive belief in the future of the Front Royal and Warren County area. Included are three of the many industry sectors that are important components of our community’s economic engine. Additionally, Front Royal and Warren County are uniquely situated, geographically, to offer businesses and industries the advantage of the I-81 business gateway, the Virginia Inland Port, as well as the I-66/Northern Virginia/metro D.C. corridors.

This new look goes along with the new Board of Directors, new staff, and a new commitment to encouraging business and industry growth and development in the Front Royal Warren County area.

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Update: County responds to Town announcement of FRPD financing



This story has been updated. Here is the complete release. Page 2 of the release was missed and left out of the original post.

Warren County released the following press release on Friday, September 25, 2020:

The press conference held on September 23, 2020, announcing that the Town of Front Royal has secured permanent financing for the Front Royal Police Department building is great news for the citizens of our community! It closes a chapter on one aspect of the lawsuit the Town of Front Royal filed against the Front Royal-Warren County Economic Development Authority (EDA) and ends months of dispute between the EDA, the Town, and the County. It should be viewed as a path forward to a working relationship between the Town of Front Royal, Warren County, and the EDA.

As Warren County citizens, we were brokenhearted by the EDA scandal. The breach by those who were entrusted with our tax dollars and economic development is one that will take years to restore. Efforts taken by the Warren County Board of Supervisors to restore faith and oversight of the new EDA Board of Directors are well documented. Both the Board of Supervisors and the EDA Board of Directors have worked diligently to clean up the mess and recover the stolen assets for taxpayers.

The portrayal by some Town leadership that the County was unwilling to work with the Town to resolve the EDA issues could not be farther from the truth. The County has had every incentive to work with the Town to resolve the Police Station debt owed by the Town and has repeatedly approached the Town to work together on economic development issues critical to the success of our community.

Town and County residents expect us to resolve our differences and focus on big issues affecting our community. Rampant drug overdoses and deaths in our community, families on the margins suffering from the economic effects of the COVID-19 pandemic, teachers struggling to educate our children remotely, first responders working double overtimes…these are the type of issues we should be working together to resolve.

Our government needs to DO BETTER. We need to stop blaming one another and start focusing on what will better the lives of our citizens. The residents of our community deserve leaders who spend their tax dollars wisely. That includes streamlining our efforts to reduce duplication of the same services and waste of resources. THE CITIZENS of the Town/County are footing the bill for these lawsuits that are equivalent to suing ourselves. And in the case of Town residents, they are paying for lawyers and court costs on both sides.

The citizens of this community want their leaders to find ways to work together. They deserve it. We encourage the Town leadership to work with the County and the EDA to secure a better community!

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