In this second segment of the initial interview on June 15, 2017 with Front Royal Police Department Investigators Landin Waller and Crystal Cline, McDonald pushes forward a theory targeting this reporter as a player in the EDA office break-in revolving around inquiries into and source information acquired that ITFederal principal Truc “Curt” Tran was the “secret investor” in the planned Skyline Regional Justice Academy.
McDonald referenced a time I worked at local radio station WFTR (WZRV The RIver 95.3 FM) and claims I accessed public files. However I never actually was in the EDA offices suite while a radio station employee. After being fired from the radio station, perhaps coincidentally at the very time I was seeking information from Congressman Robert Goodlatte and his staff about the congressman’s involvement with and knowledge of ITFederal and its owner, McDonald invited me to come to her office “to talk”, presumably to glean information about what I had learned about Tran and his company.
The following is a transcript of the official incident report for the alleged break-in, reported on May 18, 2017:
Front Royal Police Department Investigation Narrative: Officer Report for Incident 17050871
Date, Time, Reporting Officer: 05/18/17, 14:00, Detective Landin J. Waller Description of the Incident:
On 05/18/17 I, Detective Landin J. Waller, was contacted by Captain Ryman in reference to an incident at the .Warren County Economic Development Authority (EDA) located at 400 Kendrick Lane. Myself and Detective King responded to the scene where we were met by Captain Ryman and Captain Nicewarner. Detective King and I were briefed about the scene by Captain Ryman.
We were advised four (4) 4″ by 6″ personal photographs and a large cut out photograph of Jennifer McDonald were taken from McDonald’ s office and found in the conference room. Three ( 3) of ‘the 4″ by 6″ photographs had McDonald in the picture with her face scratched out with a sharp object. The fourth 4″ by 6″ photograph was a picture of McDonald1 s niece and her toddler aged son with the word “NIGGAR” written in black marker across the face of the child. The large cut out photograph had a black plastic handle steak knife plunged through the forehead of the photo and it was stuck to the head rest of a brown leather office chair where McDonald admittedly normally sits.
There were no signs of forced entry to the buildings windows, and doors. As I noted there was undisturbed dust on the window ledges and on the blinds at every window. The window to McDonald’s office was raised up about two inches and not secured; However there was cobwebs and undisturbed dust on the blinds and window ledge. The two doors of access to the building and office did not have pry marks or signs of tampering.
The scene was photographed and processed by Detective King. Detective King took overall, midrange, close-up, and close-up with scale photographs. All photographs will be attached to this report in the images file. There were 6 items of evidence collected and packaged from this scene. Item #1: (4″ by 6″ photograph of niece and son), Item #2: 4″ by 6″ photograph of McDonald with Dolphin), Item #3: (4″ by 6″ photograph of McDonald with Niece), Item #4: (4″ by 6″ photograph of McDonald and family) , Item #5: (cutout picture of McDonald) , Item #6: (black plastic handle steak knife) . Detective King dusted the conference ‘ table and drawer for latent prints but was not successful.
I interviewed the two employees that were at the office, Jennifer McDonald and Missy Henry. These interviews were audio recorded and will be added to the case file.
From the interview with McDonald, I was informed that she was the Director of the EDA inhere she has been employed since 1999, She advised there are two other employees, Missy Henry and Maria Jones, that work out of this office. McDonald advised me she left the office last evening (05/17/18) at 17:00 or 17:30. She said she went to a Rotary meeting at 19;30. McDonald said left from the Rotary meeting and went directly home and the next morning she arrived to work at about 07:30. McDonald said she went to her office and she and Missy were talking when she noticed some pictures were missing from her office but she was not sure which ones. She said a while later she was notified by Missy of the scene in the conference room – McDonald did say that last Thursday morning she noticed a large knife (from the kitchen area of the EDA) was in her chair in the conference room on 05/11/17, but did not notify the police but thought it was odd.
I asked McDonald if she could think of anyone that might be mad enough to do something like this, she said “yes”. She informed me that there is a group of people who have made derogatory statements about the Work-Force Housing Project in the Royal Examiner. McDonald went on to explain there was a piece of land that was to be gifted to the town for this project; However, the EDA missed the deadline for the land to be gifted and now the land must be purchased. She said the piece of land in question was gifted by her family members (Aunt & Uncle). She stated the Royal Examiner has posted articles about this land deal in which many persons have commented negatively about her and the EDA. She listed Councilwoman Bebhinn Egger, Mike Graham, Stan Brooks, Shea Parker, Tom Conkey, Roger Bianchini, and Norma Jean Shaw as persons who she felt were angry with her.
McDonald informed me that herself, Missy, and Maria Jones are the only ones with keys to the outside of the building and to the office door. She did say there was a spare key for each door in a real estate type lock box that was located on the iron railing of the stoop. She advised that Maria Crigler, The Administrative Assistant of Northern Shenandoah Valley Regional Commission, (the neighboring business) also has the code to the lock box because they have a spare key in the lock box. McDonald informed me the keys are kept in the lock box incase someone forgets their key to the office and needs to gain entry to the office. I was then informed that all 9 employees at Northern Shenandoah Valley Regional Commission have the code to the lock box.
I also interviewed Missy Henry in the conference room. Henry stated she has been employed at the EDA as an Administrative Assistant since 2012. She advised that she left the office on 05/17/17 at 17:05 and did not return to the office around 0800 on 05/18/17. Henry advised me she was the first to notice the conference room scene. Henry also advised me that she had just changed the code to the lock box this past Monday to a 3 digit code instead of a 4 digit code. She advised that no one has been notified of the change except herself, Jennifer and Maria.
I spoke to all the employees at Northern Shenandoah Valley Regional Commission and determined that the last employee to go leave the building was Brandon Davis. X was advised that Davis1 wife went into labor last night and he stopped by the office to grab some items from his desk before going to the hospital. I have yet to speak with him, but all the other employees did not notice anything out of the ordinary on 05/17/17.
Later on that day, I spoke with employee Marla Taylor Jones by phone. Marla advised she is the current Director of Marketing with the EDA and has been since 2009. She said she arrived to work at 08:10 on 05/17/17 and left at 17:00. She did say she noticed a man who was inside the gate of the property and he was holding a phone or a video recorder and it appeared he was recording. She described the male as a white male with a beard wearing blue plaid shirt, shorts, and a ball cap. ‘ She said he went outside to ask him if he needed assistance but he walked through the breezeway and towards Ameri-Sist which is a business on the east end of the building. Jones said she had Henry call Ameri-Sist to see if the man came to their business, but was informed that no one had stopped in. Jones also said that when she was leaving at 17:00 she noticed an old red Ford Explorer or Blazer with a white male inside and the engine was running. She said he was on the road behind the building and she asked him if he needed help. She said he told her he had just made a delivery and was routing his next delivery. She said she thought this was a bit unusual.
On 05/18/17 after clearing the initial asked McDonald if I might have the spare I wanted to set up surveillance cameras, keys. On 05/18/17 at 17:30 hours Myself, Sergeant Cline set up surveillance video scene, I responded back to* the EDA and keys to the building and office because McDonald agreed and gave me the spare Detective King, Detective Fogle and inside the office.
Watch Part 2 of Jennifer McDonald initial interview with Front Royal Police Department that occurred on June 15, 2017:
EDA presents budget proposal to Board of Supervisors; delinquent taxes from contractors
On Tuesday, February 11 at the evening work session of the Warren County Board of Supervisors, the EDA Board and staff presented its budget proposal to get through the final 3 1/2 months of this fiscal year and to continue into FY 2021.
Also included on the agenda was a discussion with Building official David Beahm and Commissioner of the Revenue Sherry Sours on the payment of delinquent taxes and business license fees by contractors prior to issuance of building permits.
County Administrator Doug Stanley discussed the Department of Environmental Quality Financial Assurance requirements. Also, Stanley, along with County Attorney Jason Ham, discussed the management and lease agreements of the Front Royal Golf Club.
See the presentations, including discussion of the Town’s $8 million-plus debt to the EDA on the new police station and the status of the Front Royal Golf Club in this exclusive Royal Examiner video:
EDA report to County – long-time annual auditor withdraws from lagging 2018 audit process
During one of six operational updates from entities with which it is either directly or indirectly involved at its Tuesday, February 4 meeting, the Warren County Board of Supervisors got what Front Royal-Warren County Economic Development Authority Executive Director Doug Parson called “bad” and “very disappointing” news.
That news was that long-time EDA auditor Yount-Hyde-Barbour had withdrawn from the EDA’s 2018 audit process. That process is running considerably behind as the EDA tries to get to the bottom of the final year of a number of years during which a contracted financial investigation by Cherry Bekaert, known for its forensic audit discoveries of criminal financial behavior, alleged a number of years of financial improprieties within EDA operations.
The Cherry Bekaert investigation conducted from mid-September 2018 into the spring of 2019 has resulted in a $21.3-million EDA civil litigation against what currently stands at 14 human and business entity defendants and multiple financial felony indictments by a special grand jury empaneled to investigate potential criminality tied to the EDA civil litigation. At the center of both the civil and criminal cases is former EDA Executive Director Jennifer McDonald.
It was Yount-Hyde-Barbour that was contracted by the EDA to conduct its annual audits during most, if not all of the years during which the EDA financial scandal is believed to have occurred. In recent months retired Warren County Finance Director Carolyn Stimmel and Heather Tweedie of the auditing firm Hottel-Willis have been pouring through the EDA’s 2018 financial records trying to ascertain what EDA assets went where, how, to what purpose and most importantly, were those purposes legitimate and authorized by the EDA Board of Directors.
Yount-Hyde-Barbour had been expected to take the result of Stimmel and Tweedie’s work to belatedly conduct their annual audit for 2018. Completion of that audit has been termed crucial to the
EDA’s future ability to function as it attempts to traverse the operational aftermath of the financial crimes alleged to have occurred under McDonald’s decade of executive leadership of the EDA.
One EDA civil case defendant’s attorney wondered aloud during a past motions hearing that if their client was a defendant for the financial actions alleged against them, why the EDA auditor that had rubber stamped the EDA’s finances annually through the years of alleged embezzlements and misdirection of assets, wasn’t also a defendant.
Could Yount-Hyde-Barbour’s withdrawal from the 2018 audit process be an indicator of potential legal issues between the auditor and the EDA? In response to media questions Sands Anderson attorney Dan Siegel, present with lead EDA civil case attorney Cullen Seltzer for a closed session discussion with County officials of the EDA’s civil case landscape, said only that EDA counsel continues to explore potential legal liability in many directions.
VDOT Revenue Sharing
In other business Tuesday, after a week’s delay to allow new supervisors to gather additional information, the county board unanimously approved the County’s contribution to the Virginia Department of Transportation (VDOT) Revenue Sharing Program. It was explained that the program that runs through multiple municipal fiscal year budgets allows involved municipalities to get a 50% revenue match from the State on needed and desired road improvements throughout the county.
Numbers presented projected the County’s contribution in the coming FY 2021 budget at $250,000. It was a number projected to remain constant in FY 2021 through FY 2024. Six total involved road project costs were cited at $2.9-million over a number of years, with a 25% County contribution total of $753,312.50 and a 25% contribution from involved Sanitary District and POA fees at $703,313.50.
Short-term rental permit
By a 3-2 margin, a divided board approved a short-term rental Conditional Use Permit (CUP) for Stephen J. Aron Jr. despite some objections from neighbors in the gated River Ridge Property Owners Association. Tony Carter and Archie Fox cast the two dissenting votes.
Carter cited neighbor concerns about security issues tied to the applicant’s efforts to recoup some of his residential property improvement costs in purchasing what he said at the earlier public hearing was the run-down home of what he described as the less than conscientious previous occupants. In explaining her vote for the CUP, Delores Oates noted that renters wouldn’t be given the code to the gate, but would utilize a locked key box key to activate entry to the gated community.
Carter replied that, that solution still allowed entry and access of strangers to a community that many residents may have located to for the additional security provided by locked access available only to residents and their guests.
During the January public hearing it was noted in favor of the request that many short-term rental operations do quite a bit of vetting of guests. The applicant indicated he intended to be conscientious about those allowed to stay at the residence he and his family plan to spend a great deal of time at themselves.
In addition to the EDA, other operational updates the county received were from VDOT, RSW Jail, the Virginia Cooperative Extension Service, Department of Social Services and the Town of Front Royal.
See a related story on the Town report; and see the full Warren County Board of Supervisors meeting – other than the 3-hour-plus closed session – in this Royal Examiner video:
Economic development proceeds amidst legal and Spotted Lanternfly threats
This reporter sat down with Front Royal-Warren County Economic Development Authority Board of Directors Vice-Chairman Jeff Browne and Executive Director Doug Parsons on Friday, January 31, to discuss the work they do amidst challenges they face in the aftermath of the financial scandal that developed during the executive leadership of Jennifer McDonald and a previous EDA board majority.
In what we hope is the first of at least monthly video interviews on EDA business and affairs, listen as Browne and Parsons describe how their time is budgeted as they continue the EDA’s work of business retention and recruitment in an environment of dueling civil litigations. They continue to offer an olive branch to the Front Royal Town Council to work together in good faith to determine exactly what the EDA owes the Town in allegedly misdirected EDA assets generated by Town taxpayers, as opposed to an increasingly expensive attorney-driven civil suit filed by the Town against its existing co-created EDA.
It is litigation, as is pointed out in the interview, in which town taxpayers face the unhappy task of funding both sides, as Town taxpayers for the plaintiff and as County taxpayers for the defendant.
And speaking of olive branches, Browne and Parsons conclude the interview by describing the economic threat presented by the expanding presence of the fruit-tree and grapevine feeding Spotted Lanternfly in Frederick County to our north; and how Warren County citizens and businesses can be on the alert to spot, report and mitigate early signs of the destructive bug’s presence in our county.
Watch the discussion in this exclusive Royal Examiner video:
Judge denies EDA civil suit defendants’ motions for removal from case
In a written ruling signed January 24 and filed in the Warren County Circuit Court Clerk’s Office on January 27, Judge Bruce D. Albertson denied a host of EDA civil litigation defense motions for removal from the case as alleged co-conspirators with central defendant, former EDA Executive Director Jennifer McDonald.
Among defendant attorneys involved in the December 12 motions hearing were those representing April Petty, Jesse Poe, Donald Poe and his Earth Right Energy (ERE) solar panel installation company, and ITFederal and its principal Truc “Curt” Tran.
The basis of those defense counsel arguments for dismissal of their clients from the civil case primarily revolved around the plaintiff’s notion of an overarching conspiracy that somehow links the various defendants to central figure and former EDA Executive Director McDonald; and that there are legally definable contractual breaches making those defendants individually liable for funds that came their way through McDonald.
At the December motions hearing christened “Groundhog Day” by one media rep present (guilty as charged) for the bulk of four-and-a-half-hours of repetitive legal arguments put forth by each defense attorney on essentially identical claims for removal of their clients from the civil case, lead plaintiff attorney Cullen Seltzer’s counter was briefer.
That was because Seltzer’s reply was essentially a one-response-fits-all argument. That response was that there did not have to have to be direct knowledge among all defendants of each interlocking conspiracy McDonald is alleged to having been a party to, for that conspiracy to exist to the benefit of separate defendants in separate transactions. Seltzer scoffed at the idea of McDonald as “a rogue tornado” distributing EDA assets to various defendants without a general common knowledge that something illegal was transpiring to each defendant’s benefit.
“I deny each Demurrer and Plea in Bar for the reasons cited by the plaintiff,” Judge Albertson wrote in his brief, three paragraph ruling.
However, the judge also ruled that a plaintiff claim of “Breach of Fiduciary Duty” against all defendants, cited only McDonald and her former Administrative Assistant Michelle Henry for such action.
“Plaintiff alleges that this count applies to all defendants due to the conspiracy count. The manner in which this count is written, however, names only Ms. Henry and Ms. McDonald as parties that have breached this duty. I find that his count does not apply to the other defendants as written in the Amended Complaint,” the judge ruled.
The judge also continued a decision on Earth Right Energy’s “Plea in Bar and separate Motion for Sanctions” based on other arguments heard December 12. There was disagreement between ERE attorney Ryan Huttar and EDA counsel on the validity of contracts between the EDA and ERE in amounts over $10,000, which is most, if not all involved contracts.
EDA counsel noted that any EDA transaction or contract over $10,000 had to be approved by the EDA Board of Directors, which EDA counsel stated did not happen in the Earth Right Energy cases. However, Earth Right attorney Huttar contended the company’s contracts, including a $27-million one with the Warren County Public School system negotiated while Greg Drescher was both an EDA board member and superintendent of schools, were legally binding.
It appears a decision on those arguments will require additional factual information to be brought to the court.
Economic Development Authority Board of Directors Meeting – January 24, 2019
The Economic Development Authority held their monthly Board of Directors meeting on January 24, 2020.
One of the topics was the sale of the Stokes Market (most recent the Main Street Market) to William Huck, owner of C&C Frozen Treats on Main Street in Front Royal. Huck has been trying to remodel the property he owns adjacent to C&C but because of costs higher than anticipated and issues with zoning and permitting, he has been exploring other options to open his newest business known as My Lagniappe – it’s a Louisiana expression that means ‘An extra or unexpected gift or benefit, such as that given to customers when they purchase something.’ If you know Huck, you know he always offers his customers a little lagniappe.
The solar panels on the roof of the EDA office building was also a point of discussions. The EDA is advertising for any party interested in purchasing the solar electric system currently stationed on top of the EDA Building at 400 Kendrick Lane, Front Royal.
The RSW Jail has said they are not interested in the solar panels. The cost of installation and unknown purchase price makes the project not cost effective.
Discussion also included workforce housing, the 2018 audit, Afton Inn renovations and the big one, running out of money by March.
Watch the EDA Board at work in this exclusive Royal Examiner video:
Town given okay to amend its civil suit against EDA, with some explanation
Following a conference call with involved attorneys at their respective offices at 8:45 a.m., Friday morning, January 24, Judge Bruce D. Albertson granted the Town of Front Royal leave to amend its current $15 million civil filing against the Front Royal-Warren County Economic Development Authority. The Town has 30 days to file an amended suit and the EDA will have the option of filing a demur to dismiss the amended suit as not factually supported legally.
The Town initially filed its suit seeking the return of $3 million of its assets believed to have been misappropriated as part of the EDA financial scandal, on June 21, 2019. That filing was described by Town Attorney Doug Napier at the time as largely precautionary to prevent any statute of limitations deadlines from being passed on yet-to-be-determined fraudulent EDA transactions utilizing Town assets.
Just over three weeks later on July 12, the suit was amended to $15 million, as previously reported, still without any elaboration on the sources of that number.
Of the January 24 judicial okay to again amend its suit, Town Attorney Napier said any coming amendment would “have to be legally cognizable” – or accompanied by legally supportable documentation. Napier said the Town had a scheduled meeting with its contracted auditor, Mitchell and Company, next week. That meeting may shed light on which direction, and how far in either, the Town’s amended civil suit against the EDA will next go.
The EDA’s civil litigation against what has grown to a total of 14 human and business entity defendants currently stands at $21.3 million. And despite his being dropped from the list of EDA civil case defendants in the wake of his death last spring from a possibly self-inflicted gunshot wound, electronic computer and phone records of former Sheriff Daniel McEathron have recently been subpoenaed from his estate in the EDA civil suit.
The initial amendment to the original Town claim against the EDA coincided with the Town’s pulling back from participation in the “EDA Reform Committee” and three-way EDA-Town-County joint meeting efforts geared toward fixing what had gone wrong to allow the alleged misappropriations and embezzlements circling the former EDA executive director, Jennifer McDonald, to happen over a number of years.
At the helm of the EDA for a decade prior to her December 20, 2018 resignation, McDonald has been the central figure in both the civil and criminal cases brought as a result of the Cherry Bekaert investigation of EDA finances begun in September 2018. She currently faces 34 financial felony charges brought by the special grand jury empaneled to investigate potential criminality tied to EDA finances in recent years.
Stated justification for one publicly voiced Town financial dispute with the EDA, the 4% bond interest rate the Town has been asked to cover on construction of the new Front Royal Police Department headquarters, has pointed heavily at “promises” made by McDonald. Those promises revolved around anticipation the FRPD project would qualify for the New Market Tax Credit Program offered municipalities for economic growth capital improvement projects.
However, as a non-job creating project the FRPD construction did not qualify for what would have been a 1.5% interest rate over the 30-year life of the bond issue with funding through the NMTC Program. As that dispute festers on the edge of Town-EDA litigation, the Town has refused to pay what appears to be an undisputed $8.4-million in principal payments bill the EDA has submitted to the Town on the FRPD project.
Written references in a Memorandum of Agreement and Resolutions of support of the NMTC funding cite “anticipation” of the program’s funding and support of that funding being pursued.
Despite late 2017, early 2018 recommendations of then Town Manager Joe Waltz, Finance Director B. J. Wilson and People Inc. NMTC Program Administrator Bryan Phipps that a guaranteed bank-offered 2.65%, 30-year interest rate would be preferable to competing with multiple municipalities for limited NMTC funds, a council majority chose to hold out for the NMTC financing the FRPD project ultimately did not qualify for.
However, some Town officials have pointed to verbal promises made by McDonald that the funding was in place, as a basis for the Town claim it should not pay more than 1.5% interest rate tied to those promises.
A “legally cognizable” argument on one Town claim against the EDA?
Time will tell.