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EDA counsel accuses Tran/ITFederal defense of withholding requested documents – But motion for immediate production of missing material denied

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A motions hearing in the civil liability case of the “Warren Economic Development Authority” versus Truc “Curt” Tran and his ITFederal company began Monday afternoon, July 18, with plaintiff accusations of a willful withholding of defense evidence regarding ITFederal bank records. EDA attorney Karrisa Kaseorg told Judge Bruce D. Albertson that an ongoing effort to acquire missing records indicated by exhibit numbers of materials provided by the defense peaked over the last month to two months.

Consequently, she asked that defense counsel Gregory Melus provide what the plaintiff believes are those withheld materials “by midnight tonight”. Melus told the court that he personally had responded to all inquiries he directly had seen. However, he noted five to six attorneys and paralegals working on the case, adding that having been, like the court, “ambushed” by the short-term request for the allegedly withheld material, he did not know if the by-the-end-of-the-day plaintiff request could be met.

Judge Albertson worried that with jury selection slated for Thursday, and opening arguments and evidence anticipated to start Friday, that the plaintiff request would require a continuation of the start of the trial.

“We’re not asking for a continuance,” Kaseorg replied, “we want to see the documents.” Plaintiff counsel said they had no indication from the defense that the requested documents were subject to withholding as “privileged” information.

“Mr. Tran and the defense have known this was big problem for over a month … and we have been looking for a good faith settlement,” Kaseorg told the court observing she did not put the problem entirely on Melus’s shoulders. “I agree with Mr. Melus – we are looking down the barrel of 19,000 documents,” she said noting that if it was going to be such a problem the defense team could have communicated that on June 1 when the recent round of plaintiff requests began.

After hearing both sides’ explanation of the pre-trial predicament over about 35 minutes, Judge Albertson read some material while considering a decision. Citing the lateness of the plaintiff motion related to the scheduled start of the trial, he denied the motion for an immediate production of the missing material, with the plaintiff’s exception to the ruling noted. Asked if he also was denying the related motion to “compel” production of certain evidence, the judge responded, “Yes, it’s too close to trial … This should have been done earlier.”

Judge Albertson then denied a defense motion asking that material related to “other business enterprises” of Mr. Tran be withheld as not relevant to his EDA dealings. As previously reported by Royal Examiner, during a July 8 motions hearing on this case Judge Albertson noted he had previously expressed some “skepticism” about the defense objection to EDA evidence about Tran and his company’s use of portions of the $12 million it received in two loans related to proposed development here, primarily at the Avtex/Royal Phoenix Business Park site in Front Royal, for other business ventures in Alexandria or elsewhere. The EDA’s compensatory claim is for approximately $9 million, as Tran has kept current on his $40,000-plus a month loan payments over several years.

The EDA contends Tran acquired the EDA loans fraudulently and conspired with then-EDA Executive Director Jennifer McDonald in doing so. Disputed evidence cited also related to EDA involvement in development of a Criminal Justice Academy and Tran’s Front Royal Farms plan, neither of which came to fruition along with the failed Avtex site business proposal.

 

Our own local ‘road to nowhere’ – as the smaller than originally proposed ITFederal building, to left on a 30-acre developmental parcel valued publicly at $2.1 million, gifted behind closed doors to ITFed for one dollar to ‘jump-start Avtex redevelopment’ remains empty 7 years later and without a required Town occupancy permit.

Also as previously reported, Tran’s counterclaim appears to revolve around the contention he was taken advantage of by McDonald, and that the EDA Board of Directors at the time should have identified the alleged financial improprieties McDonald is now accused of by the EDA prior to Tran’s involvement. Pointing to a primary disputed aspect of the EDA-Tran/ITFed counterclaims of liability, Judge Albertson observed, “If he’s part of a conspiracy with McDonald, he’s not a victim of the negligent contention.”

And following what is slated to be a two-day trial in the EDA versus William Lambert civil liability case, and one day of jury selection for the EDA vs. Tran and any further motions, we will see the two sides begin their presentations on their respective “roadmaps” of what transpired between McDonald, Tran, ITFederal, and the EDA in the single largest compensatory damages civil case related to the FR-WC EDA financial scandal.

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Town Announces Withdrawal of its Civil Litigation Against the FR-WC EDA

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At 2:12 p.m., Wednesday, November 15, the Front Royal Town Council Clerk’s office issued a press release announcing the dropping of the Town’s civil litigation against the Front Royal-Warren County Economic Development Authority (EDA, FR-WC EDA). The release portrays the withdrawn litigation as a good faith effort to reduce EDA “financial scandal”-related legal expenses ultimately falling on the shoulders of town and county taxpaying citizens. The fifth paragraph of the six-paragraph release, opening with a reference to former EDA Executive Director Jennifer McDonald, recently convicted on 34 criminal counts related to the EDA “financial scandal” in the 10th Western District of Virginia federal court, reads:

“The legal proceedings flowing from McDonald’s misdeeds have been ongoing for several years. The local community, as both town residents and county taxpayers, has already shouldered substantial legal costs. In order to prevent further financial strain on the citizens and in recognition of the actual amounts remaining in dispute between the Town of Front Royal and the EDA, the Town of Front Royal has decided to non-suit its lawsuit against the EDA. This move is intended to save public funds and reflects our commitment to the community’s welfare. We hope this gesture will be met with a similar commitment from the EDA.”

It might be noted that after the Town filed its civil litigation against and withdrew from future involvement with the jointly created EDA, the now unilaterally County-overseen EDA filed a countersuit, citing financial obligations of the Town related to the EDA “financial scandal” and projects, including funding the construction of a new town police station, done on behalf of the Town during that time-frame.

One familiar with the dueling litigations and a portion of the Town’s justification framed around the fact that town officials no longer appointed EDA board members (a voluntarily given up authority*), thus had no EDA oversight responsibilities, might wonder if a reassessment of the strength or weakness of Town’s legal position in the now-abandoned litigation might have also factored into the decision to abandon the civil suit.

But whatever the driving factor, let’s celebrate what seems a positive move toward improved County-Town relations.

Click here to read the Town of Front Royal Press Release.

* FOOTNOTE: The Town-County compromise on withdrawing the Town’s responsibility for EDA operational funding may be recalled as part of the effort to end the double-taxation of town citizens for joint Town-County operations, since town citizens are also county citizens and ended up paying taxes twice for jointly overseen operations. The EDA funding agreement was part of a move that put operational funding of jointly beneficial operations totally on the County side. As we recall, other departments where similar agreements were reached to stop town citizens from being double taxed included Fire & Rescue, Parks & Recreation, and Samuels Public Library.

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McDonald Found Guilty on All 34 Criminal Counts in EDA ‘Financial Scandal’ Prosecution

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Just after 1 p.m. on Wednesday, November 1, slightly over four hours after beginning deliberations on the 34 criminal counts against former Front Royal-Warren County Economic Development Authority Executive Director Jennifer Rae McDonald regarding allegedly embezzled or misdirected EDA assets, the six-man, six-woman 10th Western District of Virginia federal jury returned guilty verdicts on all 34 counts. McDonald and her two federal court-appointed attorneys sat quietly at the defense table as each charge, and each verdict was read into the court record consecutively by a court clerk.

Over the objection of lead prosecutor Sean Welsh, Judge Elizabeth K. Dillon allowed McDonald to remain free on bond under the existing guidelines under which she has been free since the 34 federal criminal indictments were handed down by a federal grand jury on August 25, 2021. As has been reported, federal prosecutors inherited the case from two state prosecutors offices, Warren County (recusal due to staff work familiarity with some defendants) and Rockingham County (complexity, time involvement). After her arrests at the state level in mid-2019, McDonald was also free on bond or home arrest for the bulk of the time since she was initially charged at the state level.

Judge Dillon cautioned McDonald, as she said she would any defendant, against violating the terms of her bond, including showing up for her sentencing hearing at an as-yet undetermined point of time, or risk facing additional criminal charges carrying as much as 10 years imprisonment and $250,000 in fines. The judge noted a common 90-day time-frame between conviction and sentencing. She gave the defense 30 days to file any post-conviction motions.

File photo of former EDA Executive Director Jennifer McDonald, circa 2012, in a playful mood with, from left, former Town Engineer/Manager Steve Burke, County Attorney Doug Napier, and Town Attorney Blair Mitchell. Royal Examiner File Photos Roger Bianchini

In challenging the continuation of McDonald’s bond, prosecutor Welsh pointed to conflicting stories told by two of the defense witnesses the previous day as an indicator the defendant was continuing a pattern of deception to the court to justify her actions in moving EDA assets she now stands convicted of moving fraudulently. Those witnesses were former prosecution witness and former EDA Board of Directors member Ron Llewellyn, and former post-EDA financial scandal-era McDonald employer Justin Simmons. They told conflicting stories about an incident the defense asserts happened this October 22, involving McDonald and Simmons encountering Llewellyn at a church parking lot, leading to an unpleasant verbal exchange. Llewellyn denied the encounter occurred, citing that he was out of town that day at a football game in Salem. The prosecutor asserted certain evidence about a law enforcement search of McDonald’s home property when she wasn’t there and descriptions of her state of mind from a live-stream viewing of it on her phone indicated the church parking lot incident could not have occurred that day.

Defense counsel Andrea Harris countered that the incident time-frames were not mutually exclusive of both possibly having occurred. She said there was no evidence her client posed a threat to her community or to herself, and asserted that her track record of compliance with bond conditions and court appearances with all the charges facing her, indicated she was not a flight risk.

Judge Elizabeth Dillon cautioned defendant Jennifer McDonald not to violate the ongoing conditions of her bond as she awaits a sentencing hearing on her 34 convictions in federal court on Wednesday. Or she could face an additional decade in prison and $250,000 in fines, the judge warned.

In the wake of defense counsel Harris recounting McDonald’s track record of appearing for scheduled hearing and trial dates, other than when she was being treated medically, as noted above Judge Dillon extended McDonald’s bond conditions pending sentencing.

As previously reported, after inheriting the case from two state prosecutors offices, Warren County (recusal due to staff work familiarity with some defendants) and Rockingham County (complexity, time involvement), on August 25, 2021, a 10th Western District of Virginia Federal Grand Jury handed down 34 federal criminal indictments against McDonald on charges including bank fraud (10 counts), wire fraud (7), aggravated identity theft (1), and money laundering (16). While total EDA “financial scandal” losses have been estimated at $26-million, including $12 million in the ITFederal loan and related EDA investment, evidence presented at trial indicated McDonald moved over $5 million, perhaps as much as $6.5 million, to her personal benefit. She was initially arrested and charged criminally at the state level in mid-2019.

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After a Spooky Courthouse Halloween McDonald Criminal Trial Goes to the Jury

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After over four hours of closing arguments (prosecution 2:33; defense 1:32; prosecution rebuttal:21-minutes) in the wake of presentation of the defense case in less than an hour with the calling of just three witnesses, the 34-count federal criminal case against former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald went to the jury at 5:45 p.m. Tuesday afternoon, October 31.

But that wasn’t until after court was delayed for nearly a half hour by an alarm and recorded message: “Fire Emergency reported in the building. Please evacuate the building by the nearest exit. Do not use the elevators,” that went off repetitively for nearly a half hour after beginning at 4:45 p.m. To our knowledge, Fire and Rescue first responders found no fire in the building this Halloween day. But it was a pretty spooky interlude on the final day of the off-again, on-again trial that began on August 21 and saw two delays, the second one of a month, due to various involved party health issues.

First responders may have been as puzzled as building occupants who evacuated as told despite no signs of the ‘fire emergency’ they were told was reported in the building. Royal Examiner Photos Roger Bianchini

Perhaps the most interesting legal development of the day was defense counsel Abigail Thibeault’s closing argument focus on what the prosecution had dismissed as one of the more unbelievable defendant explanations of her movement of EDA money to her own use. That was the defense-alleged secret “Voluntary Settlement Agreement” between the EDA Board of Directors and McDonald to assure her silence and non-suit over what she claimed were sexual harassment and sexual assaults by County officials, including former County Administrator Doug Stanley, among other high-profile local officials. The price of that silence was an alleged $6.5 million the defense contends was agreed to be secretly paid to McDonald, thus explaining some of the movements of EDA assets to her own use that the prosecution presented as evidence of fraud and criminal misdirection of EDA money.

“This is about sexual assault … This story is much bigger” than what the prosecution had presented to them, Thibeault told the jury of the notion that an economically and sexually privileged, male-dominated county elite had set McDonald up to take a fall for challenging their dominance.

During closing arguments, the defense contended their client actually did have significant Hollywood Casino slot machine winnings, evidence of which the prosecution and its investigative teams downplayed. Below, boys will be boys? Jennifer McDonald on the job prior to her December 20, 2018 resignation among escalating questions about her movement of EDA assets into personal uses. The defense contended in closing arguments that McDonald is the victim of a predatory male elite in Warren County and that, in the end, the EDA board became a tool of that elite.

Lead prosecutor Sean Welsh countered Thibeault’s assertions in rebuttal, telling the jury the Voluntary Settlement Agreement theory was countered by multiple pieces of evidence the prosecution had presented to them. He pointed to other prosecution witness-testified false allegations McDonald is alleged to have made to explain some of her financial transfers to achieve real estate and other transactions. Among those were Larry Tuttle’s alleged financing of several McDonald/Da Boyz LLC real estate deals he testified he had no financial assets to accomplish. Why lie about such things if there was a simple explanation, such as the EDA Board of Directors authorizing the transfer of assets to McDonald? Welsh asked the jury.

The defense team and defendant, among others, wait for the all-clear to re-enter the federal courthouse in Harrisonburg Tuesday afternoon around 5 p.m. after a ‘fire emergency’ announcement cleared the building on Halloween Day.

After the 10th Western District of Virginia federal courthouse building was evacuated and cleared of any fire and the prosecution’s closing rebuttal was completed, a final round of procedural instructions from Judge Elizabeth K. Dillon was given to the jury. The jury was then sent out to select a foreman and determine whether they wanted to begin deliberations immediately or return the following day. After 10 minutes, the court was informed the jury had decided to return on Wednesday to begin the final chapter of this trial. Questioned about a preferred starting time by the judge, they opted for a 9 a.m. start Wednesday morning.

As previously reported, after inheriting the case from two state prosecutors offices, Warren County (recusal due to staff work familiarity with some defendants) and Rockingham County (complexity, time involvement), on August 25, 2021, a 10th Western District of Virginia Federal Grand Jury handed down 34 federal criminal indictments against McDonald on charges including bank fraud, wire fraud, aggravated identity theft, and money laundering. Those charges are related to the alleged misdirection of an estimated $ 26 million in municipal and EDA assets to personal use and enrichment of McDonald and alleged co-conspirators.

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Judge Denies ‘Renewed’ McDonald Defense Mistrial Motion – Defense Case to Open Tuesday, October 31

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Following a closed evidentiary hearing Thursday afternoon, October 27, Judge Elizabeth K. Dillon denied a “renewed” defense motion for a mistrial due to repeated delays in the federal criminal prosecution of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer Rae McDonald. The defense initially called for a mistrial on September 26. While taking that motion under advisement, Judge Dillon expressed a preference for the alternative of “briefly suspending the trial” to accommodate apparent health issues with the defendant and resuming it as an alternative to a mistrial. The trial is now scheduled to resume at 8 a.m. Tuesday morning, October 31, with the anticipated opening of the defense case. November 1 has also been set aside to accommodate the defense presentation, any motions, closing arguments, and jury instructions before the case is handed over to the jury for deliberations.

The scheduled start of what is expected to be a brief defense presentation, perhaps taking less than a full day with three or less witnesses being called, was again delayed on Friday, October 27. The scheduled 10th Western District of Virginia federal court starting time of 8:30 a.m. was adjusted late Thursday to a 3 p.m. Friday start. And shortly after that late Friday start and the beginning of the remote connection of several witnesses to be called during the hearing, Judge Dillon asked if either counsel wanted to request that the hearing be closed to the public.

Tuesday and Wednesday, October 31 and November 1, have been set aside for the conclusion of the criminal trial of Jennifer McDonald at the federal courthouse in Harrisonburg, Va. – Royal Examiner File Photo Roger Bianchini

“Yes, your honor,” was the reply from the court-appointed defense team of Andrea Harris and Abigail Thibeault. It might be noted that defendant McDonald was again not present at the defense table, as she had not been after lunch break the previous day. A clue as to that absence and the defense request for a closed hearing may have been heard during the beginning of the remote witness connection process. One of those witnesses was referred to as “doctor” and a comment concerning “the name of the patient you’ll be discussing” was made. According to the PACER court website, a total of five people testified during the closed hearing of October 27, all of them cited as doctors: “1. Dr. Miklos Szentirmai – via Zoom 2. Dr. David Saenz – via Zoom 3. Dr. John Craig Henry – via Zoom 4. Dr. Anne Bagley 5. Dr. Melanie Matson – via Zoom …”

As noted in yesterday’s story on the closing of the prosecution case and delay in opening the defense case, defense counsel told the court that their client had a cardiac pacemaker installed recently in the wake of health issues leading to a recurring elevated heart rate and blood pressure that led to a delay of a month, Sept. 26 to Oct. 26, in the trial.

File photo of Jennifer McDonald following one of her arrests at the state level in July 2019. Following one of those arrests, McDonald was transported for medical care believed related to elevated heart rate and blood pressure issues that have seemingly recurred during this trial.

Background
As previously reported, after inheriting the case from two state prosecutors’ offices, Warren County (recusal due to staff work familiarity with some defendants) and Rockingham County (complexity, time involvement), on August 25, 2021, a 10th Western District of Virginia Federal Grand Jury handed down 34 federal criminal indictments against Jennifer McDonald on charges including bank fraud, wire fraud, money laundering, and aggravated identity theft. Those charges are related to the alleged misdirection of an estimated $ 26 million in municipal and EDA assets to personal use and enrichment of McDonald and alleged co-conspirators. The latter are yet to be indicted criminally at the federal level, likely due to speedy trial issues. A number of alleged co-conspirators were charged criminally at the state level, with charges then dropped by Warren County prosecutors to prevent defense motions for dismissal due to looming speedy trial statute violations. The case has been defined as “complex” due to the amount of evidentiary material involved, cited at well over a million pages of doc

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Prosecution Rests in McDonald Trial – Recent Health Procedure of Defendant Revealed as Start of Defense Case Delayed After Lunch Break

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The prosecution in the federal criminal trial of former Front Royal-Warren County Economic Development Authority (FR-WC EDA, EDA) Executive Director Jennifer McDonald rested after the testimony of the final of its 57 witnesses Thursday morning, October 26. That witness was Kevin Nicholson, a Federal Bureau of Investigation (FBI) forensic accountant. In direct examination, Nicholson testified about the path of funds originating with the EDA to McDonald, as well as her husband Samuel North, that were used in a series of personal real estate and other transactions, including the paying off of various personal bills, as well as the use of ITFederal principal Truc “Curt” Tran’s name in one of those real estate transactions on property located at 2890 Buck Mountain Road.

During Monday’s hearing announcing the two-day delay of the trial to Thursday due to technical evidentiary issues, the prosecution had estimated Nicholson being on the stand for 90 minutes to two hours. After an hour and 20 minutes of direct examination tracing those multiple financial transactions the prosecution asserts were evidence of the various levels of fraud and the one aggravated identity theft charge involving Tran that McDonald is accused of, Nicholson was cross-examined for five minutes by the defense, with another two minutes of re-direct examination. During cross and re-direct examination defense and prosecution counsel sparred over the exclusion of some transactions in Nicholson’s chart references and the terminology of “loan” or “line of credit” used by Nicholson during his testimony. The defense also elicited an admission by Nicholson that he had worked with the prosecution in the assembly of some of the evidence presented in support of the prosecution’s case.

The lengthy and often delayed federal criminal trial of Jennifer McDonald related to the EDA ‘financial scandal’ seems to be winding down to a close at Harrisonburg’s federal courthouse – if the defendant’s health holds up. Royal Examiner File Photos Roger Bianchini

Following Nicholson’s hour and 20 minutes on the stand, the prosecution rested at 10:35 a.m. However, rather than moving directly to the opening of the defense case, the jury was dismissed as the defense filed motions for dismissal of several of the charges against their client as unproved by the prosecution evidence presented. Those dismissals involved several cases of bank and wire fraud, as well as the aggravated identity theft involving the use of Tran’s name in the Buck Mountain Road transaction. After an involved defense presentation, the prosecution argued against the standards cited by the defense, asserting that they had proved not only fraud but the use of Tran’s name to facilitate a real estate transaction they believe the bank would not have approved with only McDonald’s name attached to it.

Judge Elizabeth K. Dillon said she would need time to review some of the evidence cited in the dueling arguments, and she would reserve a decision on the defense motions for dismissal of some counts — 8 thru 10 and 14 thru 17 — “at this time.” Judge Dillon then asked if the defense was ready to present evidence in their case. This led to a brief consultation with their client, after which the defense team of Andria Harris and Abigail Thibeault asked for five minutes to consult with their client. At that point, at 10 minutes of noon, Judge Dillon called the jury back in and released them for lunch. Following the five-minute break, the judge noted that defense counsel had told her that McDonald would invoke her Fifth Amendment Constitutional right against self-incrimination, declining to testify. Judge Dillon then queried McDonald on her decision, asking if it was, in fact, her decision alone not to testify.

“Yes, mam,” McDonald responded.

The judge then overruled a prosecution objection to the calling or recalling of certain witnesses by the defense. Former EDA board member Ron Llewellyn, who had testified for the prosecution, was present in the hallway outside the courtroom as a potential defense witness. It was a situation he did not seem overly pleased about. However, Judge Dillon noted that the prosecution could object to certain lines of questioning during the disputed witness’s testimony.

Court then adjourned for lunch at 12:01 p.m. When court was reconvened at 1 p.m., the judge took both prosecution and defense counsel into chambers for discussion. The jury was brought in at 1:15 p.m. while the judge and counsel were still in chambers. Twenty minutes later, the judge and counsel returned to the courtroom. Judge Dillon then dismissed the jury, instructing them to return for an 8:30 a.m. start of the defense case the next day, adding that she anticipated the case being turned over to them for deliberations before the end of the day on Friday.

Ongoing health issues?

An unexpected piece of information was revealed by defense counsel shortly after court was convened Thursday morning at 8:30 a.m. That was that their client had recently “had a pacemaker installed” in the wake of her health issues that delayed the trial for a month, from September 26 to October 26. Those issues, according to sources, were a collapsed lung due to pneumonia and consequent raised heart rate and blood pressure that sent McDonald back to the hospital when the trial had been expected to resume in the last week of September.

McDonald was not in court with her counsel after the lunch break. One person present outside the third-floor courtroom after lunch said there had been word EMTs were present outside the courthouse. Attorneys on both sides of the aisle declined comment on whether EMTs had been summoned for the defendant. However, with her recent elevated blood pressure and heart rate issues, it might be noted that the courthouse elevator became un-operational early in the day on Thursday. While leaving for lunch break, McDonald had stepped aside to let several people following her to the stairs to pass, as she said it might take her a while to make it down. One might wonder how the long climb up those stairs after lunch might have impacted her health-wise, apparently not too long after having a pacemaker installed.

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McDonald Trial Again Delayed on ‘Unanticipated Circumstances’ — But Only Till Thursday

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After a delay four days short of a month (Sept. 26 to Oct. 23) due to “unforeseen circumstances” or “unforeseen health issues” depending on which attorney’s table you were describing that situation from last month, on Monday morning, October 23, the federal criminal trial of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer Rae McDonald was again put on hold — though this time only for two days. Well, three if you count Tuesday, October 24, which was going to be lost anyway due to the Harrisonburg Federal Courtroom being committed to another case that day.

After court convened at 8:30 a.m. Monday morning (Oct. 23), Judge Elizabeth K. Dillon made the ruling to reschedule the trial to restart Thursday morning at 8:30 a.m. after hearing of an evidentiary situation delaying defense counsel’s ability to review some material that was apparently not transferred to the federal level from state prosecutors offices in a timely or usable manner. Lead prosecuting attorney Sean Welsh described “approximately 5,000 emails and 10,000 attachments” forwarded recently to McDonald’s federal court-appointed attorneys that apparently had what Judge Dillon described as “issues with the flash drive”. Those issues may have had to do with document encryption.

If this reporter heard correctly, lead prosecutor Welsh indicated the bulk of the new material did not directly involve the defendant. Despite that, and those flash drive issues being corrected as the prosecution noted, the defense still needed additional time to review the newly readable material to see if it impacted their defense case strategy in any way. The judge referenced a “status conference” held the previous day, Sunday, perhaps explaining defendant McDonald’s absence from the defense table again on Monday, as both sides appeared to know the trial would not be reconvened that day.

Jennifer McDonald after the second of her two state prosecution arrests in the summer of 2019. Below, VSP and FBI at EDA offices in April of 2019, when they searched premises for potential ‘financial scandal’ evidence, including McDonald’s former office and work computer. She was charged criminally at the state level in July and August of that year. Mug Shot Courtesy RSW Jail; Royal Examiner File Photo

Judge Dillon closed the hearing convened at 8:30 a.m., to the public after five minutes of public discussion of the issue. The hearing was reopened about 15 minutes later at 8:50 a.m. After some discussion on the trial reconvening date, having earlier acknowledged the loss of Tuesday to another scheduled case being heard in the Harrisonburg federal courtroom, Judge Dillon said she was inclined to go with her first suggestion of Thursday morning, giving the defense ample time to review the newly available evidence.

With the prosecution down to the final of its 57 witnesses, estimated Monday to be on the stand two hours or less, and the defense likely to call just one or two witnesses, Judge Dillon forecast the 34-count criminal case against McDonald going to the jury by Friday after closing arguments. The jury was then called into the courtroom to explore their availability for deliberations through the coming weekend. Two of the 15 jurors and yet-to-be-named alternates were absent Monday due to health or travel issues. After polling the 13 jurors present, if the case proceeds as expected, in addition to Friday, jury deliberations were slated for Sunday, Monday, Tuesday, and Wednesday, October 29 through November 1, as necessary. Due to two jurors schedules, Monday deliberations would conclude at 2 p.m., and Tuesday’s at about 4:25 p.m.

With the jury released at 9:15 a.m. until Thursday morning following the deliberation scheduling, Monday’s hearing was recessed at 9:17 a.m. It was scheduled to reconvene at 1 p.m., with the prosecution and defense slated to discuss with the court technical issues moving forward, among those jury instructions.

The 10th Western District of Va. federal courthouse in downtown Harrisonburg. Royal Examiner Photo Roger Bianchini

Background

As previously reported, with well over a million pages of documentation related to the EDA “financial scandal” the McDonald case has been labeled “complex” at the state level. That “complexity” contributed to its being handed over to the 10th Western District of Virginia Federal Court by the State Special Prosecutor’s Office in Harrisonburg/Rockingham County.

Consequently, after inheriting the case from two state prosecutors offices, Warren County (recusal due to staff work familiarity with some defendants) and Rockingham County (complexity, time involvement), on August 25, 2021, a 10th Western District of Virginia Federal Grand Jury handed down 34 federal criminal indictments against defendant Jennifer McDonald on charges including bank fraud, wire fraud, money laundering, and aggravated identity theft. Those charges are related to the alleged misdirection of an estimated $26-million in municipal and EDA assets to personal use and enrichment of McDonald and alleged co-conspirators. The latter are yet to be indicted criminally at the federal level, likely due to speedy trial issues. A number of alleged co-conspirators were charged criminally at the state level, with charges then dropped by Warren County prosecutors to prevent defense motions for dismissal due to looming speedy trial statute violations.

In addition to McDonald settling out of civil court in a “no-fault agreement” to give an estimated $9-million in real estate assets to the EDA, last year a number of alleged co-conspirators were successfully prosecuted in Warren County Circuit Court civil actions by FR-WC EDA contracted counsel. Several other people also settled out of court with the EDA. Total recovery or civil liability on paper was around $24+ million. However, several of those jury civil liability verdicts have been appealed.

EDA civil cases liability chart from around July 2022 – It does not include out-of-court settlements or Samuel North’s liability case ruling several months later.

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Pressure: 30.03"Hg
UV index: 0
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57°F / 34°F

Upcoming Events

Dec
6
Wed
5:30 pm Free Holiday Meal @ Trinity Lutheran Church
Free Holiday Meal @ Trinity Lutheran Church
Dec 6 @ 5:30 pm – 7:00 pm
Free Holiday Meal @ Trinity Lutheran Church
If one has read the Surgeon General’s 2023 report on America’s epidemic of loneliness and crisis of disconnection, one can then understand the significance that a Holiday Meal can have on the community at large. [...]
6:30 pm Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Front Royal Wednesday Night Bingo @ Front Royal Volunteer Fire Deptartment
Dec 6 @ 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
9
Sat
8:00 am Breakfast with Santa @ Rivermont Volunteer Fire Department
Breakfast with Santa @ Rivermont Volunteer Fire Department
Dec 9 @ 8:00 am – 11:00 am
Breakfast with Santa @ Rivermont Volunteer Fire Department
Rivermont Volunteer Fire Department is having a Breakfast with Santa on Saturday, December 9th, from 8:00 a.m.- 11:00 a.m. Adults are $10.00 Kids are $5.00 Children 5 and under are free!
12:00 pm Christmas Lunch for Kids, Vets a... @ Front Royal Elks Lodge
Christmas Lunch for Kids, Vets a... @ Front Royal Elks Lodge
Dec 9 @ 12:00 pm – 4:00 pm
Christmas Lunch for Kids, Vets and Seniors @ Front Royal Elks Lodge
The Front Royal Elks Lodge will hold it’s annual Holiday Lunch for Kids, Veterans and Seniors on Saturday, December 9. Festivities will begin at 12 noon. Mr. and Mrs. Clause are said to be coming!
4:30 pm Astronomy for Everyone @ Sky Meadows State Park
Astronomy for Everyone @ Sky Meadows State Park
Dec 9 @ 4:30 pm – 7:30 pm
Astronomy for Everyone @ Sky Meadows State Park
Historic Area. 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 light conservation. Then join NASA’s Jet Propulsion[...]
Dec
12
Tue
7:30 pm American Legion Community Band C... @ Boggs Chapel at R-MA
American Legion Community Band C... @ Boggs Chapel at R-MA
Dec 12 @ 7:30 pm – 9:30 pm
American Legion Community Band Christmas Concert @ Boggs Chapel at R-MA
The American Legion Community Band, located in Front Royal, Virginia, was formed in 1986 and has been playing concerts in the area ever since. The conductors and band members are all volunteer musicians from the local[...]
Dec
13
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 13 @ 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
16
Sat
10:00 am 10th Virginia Infantry Encampment @ Sky Meadows State Park
10th Virginia Infantry Encampment @ Sky Meadows State Park
Dec 16 @ 10:00 am – 4:00 pm
10th Virginia Infantry Encampment @ Sky Meadows State Park
Historic Area. Journey back in time and immerse yourself in the sights, sounds, and smells of a Civil War Encampment during the holidays. Interact with the 10th VA Infantry, also known as the Valley Guards,[...]