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EDA in Focus

EDA civil complaint details allegations surrounding key projects

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While attorneys for defendants in the EDA civil litigation have focused on what they contend are vagaries in details of the cited misdirection of EDA assets, the complaint itself lists some detail, including specified amounts of money moved on a variety of projects contended to be conduits for the alleged embezzlement or misuse of EDA or EDA-enabled resources.

As previously reported by Royal Examiner, the projects or methods identified as those conduits for misdirection of EDA assets in the civil complaint are: the ITFederal Loan; Subsequent Payments to ITFederal; Workforce Housing – Royal Lane Property Embezzlements; Afton Inn Project Embezzlements; Criminal Justice Training Academy aka Skyline Regional Justice Training Academy; Unlawful Payments Concerning Earth Right Energy LLC; and Unlawful Payment of Town and Warren County Funds for Defendant McDonald Owned/Controlled Real Estate”.

Due to the voluminous material cited in the 199-paragraph, 32-page EDA civil complaint concerning the above-cited EDA projects, loans, private business and contractual arrangements, we will begin Royal Examiner’s more detailed exploration of the EDA lawsuit and initial defense responses by narrowing on specific portions of the complaint. Note that Royal Examiner is not asserting the truth of either the allegations in the complaint or defense responses to those allegations – merely reporting their existence and some detail.

Of particular focus regarding alleged false information being used to prop up the movement of the largest amount of misdirected EDA assets, a $10-million bank loan little of which appears to have been spent here nearly four years on is ITFederal’s recruitment as the first commercial redevelopment client at the former Avtex Superfund site. Six pages of the complaint are devoted to the ITFederal loan process.


The lone ITFederal construction nearing completion on May 2, 2019, as a one-story, 10,000 s.f. building – Royal Examiner File Photos/Roger Bianchini

Of the securing of a $10-million dollar loan to ITFederal the complaint states in paragraph 89, “Tran and Defendant McDonald represented, through McDonald, to the Town, the County and the Warren EDA multiple times that (a) Tran was a high-net worth individual, (b) he did not need any financial assistance from the Town, the County and the Warren EDA to make the ITFederal Project financially viable, (c) ITFederal/VDN Systems had procured a $140 million contract with the Nuclear Regulatory Commission to provide information technology services on a long-term basis and (d) Tran had the endorsement and support of U.S. Congressional Representative Robert Goodlatte …”

Continuing in paragraph 99, “On information and belief, despite any nominal award of any federal contracts to ITFederal and/or VDN, the actual work and payments under any such federal contracts … appear to be not more than $5,000 over the last five years.”

Paragraph 100 of the complaint states, “The websites for ITFederal, VDN and ACRC (three Tran companies) all appear to be bogus websites with little or no substantive information or recent activity in connection with purported businesses. In some cases it appears they have not been updated since 2012. Based on information and belief, these websites were created to convey a false impression that ITFederal, VDN and ACRC were active businesses with a substantive source of income with the intent of fraudulently inducing the Warren EDA to make the ITFederal loan.”

As previously reported here, in motions filings McDonald attorney Lee Berlik has contested the assumption that McDonald was consciously lying in regard to many of the allegations against her, rather than simply repeating lies she was being told; or in other instances following through on methods of moving EDA assets approved by the EDA board to facilitate projects it later regretted becoming involved in.

Jennifer McDonald, grey sweater, with five of seven EDA board members, circa 2015-16. Pictured from left facing the camera are Ron Llewellyn, Vice-Chairman Greg Drescher, McDonald and Chairman Patty Wines; back to camera from left are Bill Sealock and Billy Biggs.

“The Warren EDA, Plaintiff in this action, is engaged in an attempt to smear Ms. McDonald by blaming her for every bad decision made by the Warren EDA board over the last several years and turning business deals the Warren EDA now regrets into implausible conspiracies,” Berlik wrote on the first page of a defense motions filing on April 16, adding emphasis in context, “Plaintiff suggests every statement by every counterparty it now regrets crediting was a false statement by Ms. McDonald … instead of a false statement to Ms. McDonald.”

Beginning with her presentation of Tran and ITFederal to the EDA board and town government in 2014, the complaint alleges a lengthy effort by McDonald to mitigate Tran and his company’s costs and liability while at the same time working toward securing of a $10-million loan the complaint asserts she repeatedly told local officials Tran did not really need to accomplish his project.

Rather, the Town’s initial assistance in the way of a $10-million dollar “bridge loan” to facilitate a $10-million bank loan then EDA Attorney Blair Mitchell noted Congressman Goodlatte had requested in a 2015 email correspondence with McDonald, was presented as a means of promoting long-sought commercial redevelopment at the site. It is perhaps also noteworthy that the EDA put up the 117-acre balance of the Royal Phoenix Business Park property as collateral for the $10-million dollar ITFederal loan from First Bank & Trust.

As work progresses on his building in background, ITFederal CEO Truc ‘Curt’ Tran on site at the EDA office complex on Dec. 20, perhaps ironically the day Jennifer McDonald resigned as EDA executive director.

“Tran and Defendant McDonald stated that Tran did not need the financial support of the Town and the Warren EDA, but that such assistance was requested by Rep. Goodlatte,” graph 90 of the complaint states; further noting the request that 30 acres of the 147-acre Royal Phoenix Business Park be donated to Tran and his company “free of charge” – well he did end up paying a dollar for the parcel valued at $2 million in open EDA meeting discussion – and to secure the loan to facilitate construction “of all or a part of the ITFederal Project.”

Then U.S. Congressman Goodlatte, R-6th, participated in the October 2015 ITFederal ribbon cutting, taking credit for the company’s arrival here and promoting a promised $40-million ITFederal investment in the community that would create 600-plus high-paying, largely tech industry jobs.

The EDA complaint filed by the Sands-Anderson law firm of Richmond also addresses Tran’s alleged ties and access to resources from the federal EB-5 Visa Program created to trade U.S. citizenship in exchange for significant private investment – cited at $1 million dollars – in the U.S. economy.

“Tran and Defendant McDonald represented, through McDonald, on multiple occasions to the County, the Town and the Warren EDA that ACRC had obtained or was in the process of obtaining EB-5 financing to finance the ITFederal Project,” the complaint asserts.

“The new venture must create and sustain at least ten full-time employees for at least two years in order for the investor seeking citizenship to convert his or her green card into full citizenship … ACRC (American Commonwealth Regional Center) is another entity established and controlled by Tran … ACRC represents it is an approved EB-5 regional center … However, based on a search on the USCIS website on February 12, 2019, ACRC does not appear to be an approved regional center for EB-5 financing.

“There is no evidence that ACRC has ever successfully obtained or used EB-5 financing in connection with the ITFederal Project or for any other purpose,” the complaint states.

The complaint also notes that in 2017 Tran requested a modification of his Borrowers Note and Deed of Trust that would have forced the initially-discussed purchase price of about $2 million to kick in if certain developmental conditions were not met by specific dates. That extension to September 2020 significantly reduced the required scope of the project from its initial three-building complex housing all those high-dollar jobs Goodlatte had trumpeted in a press release.

Above, architectural drawing of proposed two-story, approximate 26,000 s.f. ITFederal building, one floor of which was eventually built; below, drawing of two other proposed ITFederal structures, including cloud building and office/training center earmarked for the western portion of the 30-acre parcel. Courtesy Graphics FR-WC EDA

“On information and belief, little to no proceeds of the ITFederal Loan has been applied to the ITFederal Project … Tran and Defendant McDonald have converted all or a portion of the proceeds of the ITFederal Loan to their own personal benefit,” that section of the complaint concludes.

But there’s more – under “Subsequent Payments to ITFederal” an additional four pages of the EDA complaint allege an additional $1.82 million dollars of “Unauthorized ITFederal Payments”. Those payments include $1,432,771.32 in reimbursements to ITFederal for work done at the site and over $392,000 in vendor payments.

Above, piles of fill dirt brought to site sit in proximity of where second and third ITFederal buildings pictured above are scheduled for construction; below, Dec. 20 photo of first phase of the Town-constructed West Main connector road (aka western bypass) through ITFederal property that would eventually connect Kendrick Lane and the West Main/Criser Road intersection near the skatepark/soccer complex – if it’s ever finished.

McDonald attorney Berlik also contends that the complaint fails to meet a legal obligation “to connect any alleged facts to specific claims” against defendants, limiting their ability to construct a viable defense against those claims against them.

But regarding those “Unauthorized ITFederal Payments” the complaint offers some specificity. It disputes McDonald’s initial explanation to her board that those payments were draws on the ITFederal Loan. “The proceeds of the $10 million loan made to ITFederal was issued in full at the time of closing in 2015; there is no evidence that the Warren EDA retained those funds or had any ability to approve invoices or otherwise control or direct those funds.”

The complaint then disputes representations attributed to McDonald that those payments would be reimbursed to the Warren EDA by a grant from the Virginia Economic Development Partnership (VEDP). “It is clear from the VEDP documentation that Tran and Defendant McDonald met with the VEDP relating to ITFederal in the 2014/2015 timeframe, but that Defendant McDonald was unable to provide the information VEDP was requesting to award a grant related to the ITFederal Project …Defendant McDonald deliberately took Warren EDA funds and gave them to Tran/ITFederal with no reasonable expectation that such funds would be repaid or otherwise funded from another source,” the EDA litigation states.

The complaint concludes with an assertion that McDonald personally benefitted from those payments “as part of a scheme with Tran to fraudulently obtain Town and County funds for their own benefit.”

Well laid out, fraudulent schemes or implausible conspiracies?

That will be at issue for attorneys on both sides when and if the civil litigation proceeds into the courtroom for the requested jury trial. As previously reported, several defendants have moved for either dismissal of charges or delays in the civil process until the special grand jury investigating potential criminality related to the EDA civil suit is completed.

Next up, Workforce Housing – not as much money, a total loss to the EDA cited at $651,700, but perhaps an even more convoluted trail to that loss on a project initially presented in 2014 as a free land “gift” to the EDA. That cited financial loss appears to have been cemented by the EDA’s November 28, 2018 sale of the involved 3.5-acre Royal Lane parcel for $10. It is a sale accomplished over two months into the ongoing Cherry Bekaert forensic audit of EDA finances that resulted in the current civil litigation to recover lost assets.

Now why, you may wonder, would they do that?!?

Dead End – Did the ‘Warren EDA’ acquiesce to a $651,700 loss on the controversial Workforce Housing property at the dead end of Royal Lane by way of a Nov. 28, 2018, $10 sale? And if so, who’s to blame?

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Crime/Court

Little civil consequence of more criminal prosecution delays in EDA case

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Contacted about the new dates in late 2022 of trials in the now federal prosecutor-handled criminal indictments against former Front Royal-Warren County Economic Development Authority (EDA) Executive Director Jennifer McDonald, current EDA Board of Directors Chairman Jeff Browne said while it has little, if any, impact on the EDA’s civil litigation seeking recovery of assets, he understands public frustration from continued delays on the criminal side of the EDA financial scandal.

“I don’t believe the delay in the criminal case impacts our civil case. We have no control over the criminal case, but it is frustrating that Warren County residents must wait so long for justice to be served. I understand the reasons for the delay, but it still is frustrating,” Browne told Royal Examiner.

The reason for the delay continues to be, as it has been from the outset for the most part, the volume of evidentiary documentation in the case, as well as the introduction of new attorneys into the legal equation who must absorb the information in that documentation estimated at well over a million pages.

File photo of Jennifer McDonald booked in August 2019 during state criminal prosecution process. That was her second arrest related to the local/state criminal investigation of EDA finances during her executive director leadership of the EDA. Royal Examiner File Photos


Most recently, federal Judge Elizabeth Dillon granted McDonald’s newest attorney, court-appointed Andrea Harris’s request for a continuance of McDonald’s criminal trials slated for the first week of this month. The federal prosecutor from the Western District of Virginia did not object to the continuance. Consequently, new trial dates between October 11 and November 18, 2022, are now on federal docket. Since the delay came at the request of the defense, speedy trial guidelines will not come into play.

As Royal Examiner previously reported, on August 31 McDonald was re-arrested on a 34-count indictment handed down by the Western District of Virginia Federal Prosecutor’s Office in Harrisonburg.

On April 16, 2019, FBI and Va. State Police jointly seized material from EDA offices, including the former executive director’s office computer which had been locked down from outside access since Dec. 20, 2018.

Of those 34 counts, 16 were for money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” – our best guess representing ITFederal principal Truc “Curt” Tran. The 40-paragraph True Bill elaborating on the charges to a Harrisonburg Grand Jury is dated August 25, and signed by then-Acting U.S. Attorney Daniel P. Bubar. McDonald was once again released on bond.

Dan Whitten, left, Greg Drescher, back to camera, former county attorney and EDA Board chairman respectively, as well as Tim Grant, seated at computer, lock down McDonald’s office and computer as a potential crime scene in the wake of her Dec. 20, 2018, emailed resignation in the wake of mounting closed session scrutiny by her board. Below, the same office following the April 16, 2019, FBI-led seizure of materials from the EDA offices.

The charges and outline of the case in support of them echo earlier criminal indictments filed at the state level before the State Special Prosecutor’s Office in Harrisonburg turned the case over to federal authorities in late 2019. The state special prosecutor had dropped the indictments it had filed to avoid speedy trial issues due to the volume of evidentiary material – estimated at 800,000 to over a million pages at the time. Failure to meet speedy trial deadlines could have led to defense motions for dismissal of charges on the criminal side of the EDA financial scandal case.

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EDA in Focus

EDA emerges from lengthy Closed Session to consider assistance to Angel Tree Program and C-CAP winter food storage

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(Editor’s note: The Salvation Army notified Royal Examiner that their holiday toy collection/distribution program is known as Angel Tree, as opposed to the Marine Corps Toys for Tots effort. We in turn notified the EDA Board Chairman and received permission to make the correction to this press release.)

The EDA Board of Directors met today for their regular monthly meeting. All board members were present along with legal counsel. The Board went into closed session for approximately two and half hours to discuss transition, personnel, loan restructure, and disposition of property. The Board returned to open session at approximately 11:30.

The Board discussed the transition and how the county and the EDA were working well together. Taryn Logan, Assistant County Administrator, is also the Interim EDA Executive Director working on new prospects and marketing of EDA property. Ed Daley, County Administrator will work with the EDA on current projects. The County and EDA are actively recruiting a new Executive Director and administrative assistant. Jeff Browne thanked board members for stepping up to keep the EDA operation running smoothly.

Jeff Browne discussed the use of a portion the EDA administrative building through December 22nd for the Salvation Army Angel Tree holiday toy collection and distribution campaign. The EDA will also assist C-CAP in finding proper storage for needed food through the winter.


Jeff Browne and Scott Jenkins discussed the use of interns beginning in January to assist with EDA research and future projects. Scott Jenkins reviewed the “job description”. Taryn Logan stated the use of interns by the county has been a very successful venture in the past. Ed Daley, County Administrator, also supported the proposed program.

Marjorie Martin (Jorie) will assume the duties to update the website working with Queen Consulting. Meeting dates, and updated site information will posted.

The Board is working with vendors to clean the air conditioning ducts in the EDA administration building.

Next EDA Board Meeting: Combined meeting for November and December, December 3, 2021: The meeting will be held via zoom at 9:00 AM

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EDA in Focus

County Supervisors change November meeting date – stay mum on Closed Session EDA litigation discussion

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The only open session action taking by the Warren County Board of Supervisors at a Special Meeting of Tuesday, October 26, was authorization to change the date of a November Supervisors meeting from the 16th to the 18th. That item was a late addition to the agenda made and acted on prior to a scheduled closed session.

The bulk of the 5 p.m. meeting, about an hour-and-a-quarter, was taken up by a Closed/Executive Session to discuss Economic Development Authority litigation. As Royal Examiner readers know, that is an oft-behind closed doors topic over the last two-plus years in the wake of the $26-million to $62 million FR-WC EDA financial scandal that began unravelling in mid-2018. No announcement or action regarding that litigation was offered during the brief open session to adjournment shortly after 6:20 p.m.

As has been previously reported, the EDA financial scandal involves civil and criminal cases, the latter now handled at the federal level by the U.S. Attorney’s Office in the Western District of Virginia headquartered in Harrisonburg. Before criminal indictments were dropped by the Special Prosecutor at the state level due to speedy trial concerns surrounding the mountain of documented evidence, estimated at over a million pages, there were as many as 23 co-defendants alleged as co-conspirators of former EDA Executive Director Jennifer McDonald. The federal prosecutor launched action on August 31, filing a 34-count indictment against McDonald, including 16 counts of money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” (ITFederal principal Truc Tran perhaps?)

In related civil litigation, McDonald and the EDA reached an agreement in which $9-million-dollars of assets were ruled out of McDonald’s bankruptcy court filing as owed to the EDA, though without any admission of fault by McDonald. As part of that agreement the EDA recently announced assumption of ownership of McDonald Real Estate LLC MoveOn8’s undeveloped 41-acre Happy Creek parcel valued at over a million dollars.


The EDA and Town of Front Royal are also engaged in dueling civil countersuits initiated by the Town, claiming disputed lost assets related to the financial scandal. During the tenure of Interim Town Manager Matt Tederick, other than then-Mayor Eugene Tewalt, the town council chose to ignore EDA offers to sit down in a non-litigious, good faith effort to determine exactly what was owed to the Town related to the alleged misdirected EDA assets involved in Town and County capital improvement and economic development projects financed through the EDA. The Town has since initiated an effort to create its own unilateral Front Royal EDA (FREDA) operating independently of the over half-century-old Town-County EDA, which technically the Town is still a legal, if now silent, partner in.

That independent EDA effort has become a political hot potato in the coming Town Special Election to fill resigned member Jacob Meza’s seat. In recent years the County had fully funded EDA operational costs, with each municipality covering its own debt service related to EDA financing of projects. Independent conservative council candidate Bruce Rappaport has made the unilateral Front Royal EDA a major target of his campaign, citing it as a waste of town taxpayer money and destructive wrench in the cog of Town-County relations.

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EDA in Focus

‘Ghosts of EDA Loans Past’ come back to haunt county supervisors

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The most interesting part of Tuesday evening’s Warren County Board of Supervisors meeting was likely behind closed doors after the board adjourned to Closed/Executive Session for a legal-based answer to North River Supervisor Delores Oates question as to what benefit to the County and its taxpayers there was in approval of a Resolution admitting a “moral obligation” to continue to pay the debt service on bank loans made by the EDA during its developing financial scandal, circa 2016 or so. There was one of three loans at issue of particular interest – the $10-million-dollar loan to Truc “Curt” Tran’s ITFederal company poised to jumpstart commercial redevelopment at the 149-acre portion of the former Avtex Superfund site known as the Royal Phoenix Business Park.

North River Supervisor Delores Oates particularly wondered why it remains in the County’s interest to continue covering debt service on the Town/EDA-sponsored ITFederal loan. Anxious to see commercial redevelopment begin on a portion of the former Avtex Superfund site in town, the Front Royal Town Council made a one-month, which grew to three-months, ‘bridge loan’ of $10-million to the ITFederal project to illustrate Town support of that project to a skeptical bank targeted to finance the project. Below, five-plus years later an unoccupied, un-permitted building constructed at an estimated cost of $2 million or less memorializes the entire debacle. Further below, I guess the building looks kind of like what ITFederal presented back in 2016 – at least the first floor. Royal Examiner Photos by Roger Bianchini

Of particular interest, because the “moral obligation” for that loan was initially believed covered by the Town of Front Royal, whose elected officials agreed to provide a $10-million-dollar “bridge loan” requested by then EDA Executive Director Jennifer McDonald to indicate to First Bank and Trust that “the community” stood behind the loan and proposed project it supported. That request for and Town show of financial support for the ITFed project came despite the fact the company showed virtually no assets other than the three acres at the Royal Phoenix/Avtex site valued at slightly over $2-million-dollars that was “gifted” to the company by the EDA behind closed doors for one dollar.

A clue to what the county supervisors heard over about 15 minutes in Closed Session may have been offered by the board’s action out of it. After some hesitancy in response to the Chair’s call for a motion on the Resolution, Oates’ motion for approval of the “EDA First Bank and Trust Support Agreement”, seconded by Walt Mabe, passed by a unanimous roll call vote. The vote commits the County to continue to absorb those “moral obligation” payments through the Fiscal Year 2021-22 at an estimated cost of $214,000.


In open session, responding to questions about the Resolution in support of the “EDA First Bank and Trust Support Agreement”, County Administrator Ed Daley mentioned consolidation of three loans, including the above-mentioned ITFederal loan (at $9,551,500), as well as a First Bank and Trust Line of Credit ($8,691,600), and a First Bank of Strasburg loan ($3,450,000). Contacted later, Daley cited one condition that would bring the EDA’s payments to the bank on the ITFederal loan in line with what ITFederal pays the EDA monthly at about $42,000. Before the EDA payments fluctuated to more or less than the ITFed payments, sometimes as much as $7,000 a month more.

After County Administrator Ed Daley, left, summarized the proposed ‘First Bank and Trust Support Agreement’ and Supervisor Oates asked ‘Why?’ the County should continue to assume moral obligation payments it may not be responsible for, Interim County Attorney Jason Ham, right, suggested a Closed Session might be most appropriate to answer that question.

Despite the commitment to an estimated $214,000 in payments through this fiscal year, the board’s unanimous vote in support of its moral obligation payments likely reflects negative consequences were the County to bail on covering an EDA debt mid-fiscal year. But again, the agreement is only to the end of the current fiscal year, June 30, 2022. What might the future of “moral obligations” related to the “Ghost of EDA Loans Past” bring in FY-2022-23? – Stay tuned for another seasonal episode of “A Front Royal-Warren County EDA Carol”.

Thermal Shelter bathrooms

County Administrator Daley was also prominent in responding to another matter raised by three speakers during Public Comments about things, not on the meeting agenda. That was the elimination of two bathrooms in the Health and Human Services Complex at the old 15th Street middle school utilized by the County and involved churches and civic organizations to house the community’s homeless indoors at night during the winter. Opening that discussion was First Baptist Church Pastor Christy McMillin-Goodwin, followed by Aneita Bryant and Jim Bunce.

First Baptist Church Pastor Christy McMillin-Goodwin opened Public Comments discussion of how communications broke down between involved Thermal Shelter parties on the removal and delayed replacement of indoor bathrooms nearest the winter homeless shelter.

That trio said an alternate plan for mobile outdoor restrooms was unadvisable due to security and additional personnel to monitor out-of-building night trips, as well as potential severe weather issues. Noting a replacement plan that would not have new indoor facilities in place in time for this winter’s thermal shelter setup, these speakers wondered how the removal plan had been initiated without notice to those involved in helping the County operate the thermal shelter. Bryant suggested allowing access to the next closest indoor facilities.

In responding, Daley said he had been at point for the County in initiating the bathroom removal due to failing pipes that caused toilet backup issues. He said he had envisioned a much quicker turnaround in replacing the removed indoor facilities in that section of the building than ended up being the case. He promised to work proactively with those involved to see that an adequate alternate overnight option was available when the thermal shelter opens as winter arrives.

Public Hearings

Also Tuesday following public hearings, the board unanimously approved three Conditional Use Permit applications, two for short-term tourist rentals and one for a private use campground. Following application summaries by Planning Department Deputy Director Matt Wendling the first two CUP applications, Charles and Lou Ann Dotson’s for the Private Use Campground on their property on Burma Road in the Man-Da-Lay Subdivision; and Jacob W. Lott Jr. and Sandra J. Kiepfer for a short-term tourist rental on their 1.6-acre lot on Little Indian Road in the Blue Mountain Subdivision in Linden went to a vote with no public hearing speakers. Wendling did note that a letter from the chairman of the Blue Mountain Property Owners Association had been received, expressing “no problem” with Lott and Kiepfer’s short-term tourist rental application.

Up last were Nicole and Sean McMinn with a short-term tourist rental permit application for their 2.42-acre property on Sagar Drive in the Highland Estates Subdivision in the Fork District. Again, there were no public speakers after the applicants responded to the board chair’s offer to summarize their request. The D.C.-based couple told the board they had run into little opposition from neighbors, and what opposition there had been from neighbors was not from those closest, but with property over a thousand feet from theirs.

Nicole McMinn and her husband Sean marshaled neighbor and tourism-related business support for their short-term tourist rental permit application.

And while there were no public speakers, the McMinns noted a number of letters to the board from supporters of their short-term tourist rental CUP application, which they asked to be read into the meeting record. Board Clerk Emily Ciarrocchi then read nine letters of support, including one with “25 to 30” signatures. Several of the letters, including one from the owner of the Downriver Canoe Company, noted positive impacts on tourism-related businesses from short-term renters. One letter noted, “They come; they spend; they leave”.

The board then made its final unanimous vote of approval on a motion by Archie Fox in whose district the applicant’s property lies, seconded by Walt Mabe.

Following that vote, Happy Creek Supervisor Tony Carter noted a “Bless you” included in one of the letters read by the clerk that was well-timed to a sneeze by someone present in the government center meeting room.

Approaching an election he chose not to be a part of two days after Halloween this year, Tony Carter was on a comic roll Tuesday evening suggesting politician as perhaps the scariest costume for the Oct. 31 to Nov. 2 window.

In fact, facing a future out of the public eye politically – Carter did not file to be on the ballot for reelection to his Happy Creek seat in November – Carter appeared at times Tuesday to be auditioning for Comedy Club spots during his member report and at various other times during the meeting. In fact, his coming local election, Halloween costume advice during his member report led three of his four colleagues to decline to try and “follow that act”.

See all the fun, business, and other public perspectives, including opening Public Comments speaker Michael Williams question as to whether a recent church-sponsored candidates forum in which the moderator was shown prior to the forum to have contributed to one church-associated candidate’s campaign could threaten that church’s tax-exempt status on U.S. Constitutional separation of church and state guidelines, in the County video:

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EDA in Focus

EDA gets McDonald company property as part of settlement agreement

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On Wednesday, October 20, Warren County Economic Development Authority Board of Directors Chairman Jeff Browne verified the EDA’s acquisition of the 41-acre “Happy Creek Road” parcel owned by former EDA Executive Director Jennifer McDonald’s Moveon8 real estate LLC. Acquisition of the undeveloped property assessed at just over a million dollars according to county court records is part of the $9-million-dollar no-fault settlement agreement reached between the EDA, McDonald, and the Harrisonburg Bankruptcy Court handling McDonald’s 2020 bankruptcy filing. The EDA will now be able to market the property as a developable EDA asset. It is located near the intersection of Happy Creek Road and Leach Run Parkway.

Browne said that in addition to receiving full value on the Happy Creek parcel, the EDA was in line to receive a percentage of the sale price of other McDonald assets distributed through the bankruptcy court proceeding. Exactly how close those percentages might get the EDA to the $9-million-dollar settlement figure remains to be seen. It was not immediately clear as to whether the EDA will have an outright full value claim to any other McDonald-held properties or assets.

The FBI and VSP were both involved in the April 2019 search of McDonald’s former office; below, being locked down after her resignation under mounting investigatory pressure by her board on Dec. 20, 2018. Royal Examiner File Photos by Roger Bianchini

McDonald is the central figure in the EDA financial scandal that began unravelling in mid-to-late 2018. She resigned in December 2018 under mounting pressure from her board of directors. She has been accused in civil and criminal court of utilizing her EDA position to misdirect EDA assets to her and others personal benefit. Western District of Virginia federal authorities have taken over the criminal side of the EDA case after a state special prosecutor’s office in Harrisonburg dropped criminal charges against McDonald and as many as 23 co-defendants due to speedy trial concerns as it wrestled with the volume of evidentiary material – estimated at 800,000 to over a million pages at the time. With charges against some defendants originating with the county commonwealth attorney’s office that initially handled the criminal investigation during Brian Madden’s tenure heading the department, failure to meet speedy trial timelines could have led to defense motions for dismissal of criminal charges against the defendants.


Jennifer McDonald booked during state criminal prosecution process in 2019.

On August 31, 2021, federal prosecutors made their initial move, handing down a 34-count indictment against McDonald. Of those 34 counts, 16 were for money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” – ITFederal principal Truc Tran perhaps?

ITFederal principal Truc ‘Curt’ Tran on site at EDA parking lot, adjacent to his now floundering construction project, on Dec. 20, 2018, the day Jennifer McDonald resigned as executive director of EDA. Tran expressed distress at the potential of McDonald’s departure at the time. Could Tran, whose $10-million loan for the Royal Phoenix project was the largest single item listed in the initial EDA civil litigation, have now accused McDonald of ‘aggravated identity theft’ regarding EDA financial dealings with him and his company?

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EDA in Focus

EDA completes audits for 2018 and 2019; 2020 audit is next

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The Board of Directors of the Front Royal and Warren County Economic Development Authority accepted its audited financial statements for fiscal years 2018 and 2019, today, October 5, 2021. The audit of the financial statements was conducted by the firm of Brown Edwards, CPAs of Harrisonburg, VA.

“We have received the final outside audits conducted for 2018 and 2019,” said EDA Board Chairman Jeff Browne.  “This was a huge effort on the part of Brown Edwards, and they have done very good work in challenging circumstances. Getting these two financial audits completed is a major step forward in putting the EDA’s past difficulties behind us. Now we can better focus on economic development issues to benefit the community.”

“The auditors’ letter points to three areas for improvement of internal controls,” Browne said. “It was important to make each improvement recommended by the CPAs, and we have done just that. The Warren County staff now administer the check-writing duties, collection of rents, and have layers of approvals for expenses within EDA and the County administration that were not there three years ago.”

The audited financial statements show that, at the end of the fiscal year 2019, the EDA’s total net assets were $38,036,737, and its net liabilities were $44,575,435, resulting in a deficit net position of $6,538,698. The EDA will work with Warren County’s auditors starting with the fiscal year 2020, which audit can now be undertaken.


Final Financial Statement 10-5-21

Final Letter to governance

 The EDA Board of Directors will have their next regular monthly board meeting via Zoom on Friday, October 29, 2021, at 9 a.m.

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Marlow Automotive Group

Mary Carnahan Graphic Design

Mountain Trails

National Media Services

Northwestern Community Services Board

Phoenix Project

Reaching Out Now

Royal Blends Nutrition

Royal Examiner

Royal Oak Bookshop

Royal Spice

Salvation Army

SaVida Health

Skyline Insurance

Studio Verde

The Studio-A Place for Learning

The Valley Today - The River 95.3

Warren Charge (Bennett's Chapel, Limeton, Asbury)

Warren County Department of Social Services

Warrior Psychotherapy Services, PLLC

What Matters & Beth Medved Waller, Inc Real Estate

White Picket Fence

Woodward House on Manor Grade

King Cartoons

Front Royal
34°
Clear
7:12am4:51pm EST
Feels like: 34°F
Wind: 1mph SW
Humidity: 72%
Pressure: 30.2"Hg
UV index: 0
ThuFriSat
66/45°F
55/39°F
57/30°F

Upcoming Events

Dec
1
Wed
6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Dec 1 @ 6:30 pm – 9:30 pm
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Bingo to support the American Cancer Society mission, organized by Relay For Life of Front Royal. Every Wednesday evening Early Bird Bingo at 6:30 p.m. Regular Bingo from 7-9:30 p.m. Food and refreshments available More[...]
Dec
4
Sat
10:00 am Senior Painting Class with Dottie @ Strokes of Creativity
Senior Painting Class with Dottie @ Strokes of Creativity
Dec 4 @ 10:00 am – 12:00 pm
Senior Painting Class with Dottie @ Strokes of Creativity
Senior Painting Class with Dottie at Strokes of Creativity. Tickets: CLICK HERE Cost: $80 for 6 weeks Dates: Thursdays – Oct 21, Oct 28, Nov 4, Nov 11, Nov 18, Dec 4 Time: 10 am[...]
1:00 pm The Nutcracker 2021 @ Skyline High School
The Nutcracker 2021 @ Skyline High School
Dec 4 @ 1:00 pm – 7:00 pm
The Nutcracker 2021 @ Skyline High School
Italia Performing Arts is pleased to announce its own student production of the seasonal ballet The Nutcracker, to be presented in Front Royal, VA, on Saturday, December 4th, 2021. 1:00 and 5:00 pm Tickets: $35[...]
4:30 pm Astronomy for Everyone @ Sky Meadows State Park
Astronomy for Everyone @ Sky Meadows State Park
Dec 4 @ 4:30 pm – 7:30 pm
Astronomy for Everyone @ Sky Meadows State Park
Meets in the Historic Area behind Mount Bleak. Discover our International Dark Sky Park! Our evenings begin with a half-hour children’s “Junior Astronomer” program, followed by a discussion about the importance of dark skies and[...]
Dec
5
Sun
4:00 pm Sweeter, Still… Holiday Concert @ First Baptist Church of Winchester
Sweeter, Still… Holiday Concert @ First Baptist Church of Winchester
Dec 5 @ 4:00 pm – 6:00 pm
Sweeter, Still… Holiday Concert @ First Baptist Church of Winchester
Sunday, December 5, 2021 4:00pm First Baptist Church of Winchester 205 West Piccadilly St. | Winchester, VA 22601 COVID-19 Guidelines: Masks are required for attendees Friday, December 10, 2021 7:30pm Front Royal United Methodist Church[...]
Dec
8
Wed
6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Dec 8 @ 6:30 pm – 9:30 pm
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Bingo to support the American Cancer Society mission, organized by Relay For Life of Front Royal. Every Wednesday evening Early Bird Bingo at 6:30 p.m. Regular Bingo from 7-9:30 p.m. Food and refreshments available More[...]
Dec
10
Fri
7:30 pm Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Dec 10 @ 7:30 pm – 9:30 pm
Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Friday, December 10, 2021 7:30pm Front Royal United Methodist Church 1 West Main Street | Front Royal, VA 22630 COVID-19 Guidelines: Masks are required for attendees Sunday, December 12, 2021 4:00pm Trinity Episcopal Church 9108[...]
Dec
12
Sun
3:00 pm Valley Chorale’s Christmas Concert @ Calvary Episcopal Church
Valley Chorale’s Christmas Concert @ Calvary Episcopal Church
Dec 12 @ 3:00 pm – 4:30 pm
Valley Chorale's Christmas Concert @ Calvary Episcopal Church
This year’s yuletide concert is titled THIS SHINING NIGHT.  Join us for a selection of seasonal songs — ranging in style from classical to spirituals to pop — sure to brighten your holiday and lift[...]
4:00 pm Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Dec 12 @ 4:00 pm – 6:00 pm
Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Sunday, December 12, 2021 4:00pm Trinity Episcopal Church 9108 John Mosby Hwy. | Upperville, VA 20184 COVID-19 Guidelines: Masks are required for attendees
Dec
15
Wed
6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Dec 15 @ 6:30 pm – 9:30 pm
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Bingo to support the American Cancer Society mission, organized by Relay For Life of Front Royal. Every Wednesday evening Early Bird Bingo at 6:30 p.m. Regular Bingo from 7-9:30 p.m. Food and refreshments available More[...]