After hearing slightly over two hours of prosecution and defense arguments in support of their conflicting sentencing recommendations – 22 years by the prosecution, 6 years by the defense – Western District of Virginia federal Judge Elizabeth K. Dillon went down the middle, sentencing former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald to 14 years in prison for her role in the circa-2014 to 2018 EDA “financial scandal”. However, following a defense request that McDonald be allowed not to report to prison prior to June 18, and a request by lead prosecutor Sean Welsh that the court be reasonable in not extending imposition of the defendant’s imprisonment for too long a period, Judge Dillon granted the request that McDonald remain free on her existing bond conditions and self-report to prison authorities “not earlier than June 24th”. It was not clear whether a recent unanticipated hospital visit by McDonald this past weekend impacted that request. It was also confirmed by attorneys post hearing recess that per federal guidelines defendants are generally required to serve 85% of non-mandatory sentences, though how that standard is applied can vary from facility to facility. If our calculation is correct, full implementation could cut 2.1 years off the 47-year-old McDonald’s 14-year sentence.

An estimated $26 million was moved to unapproved or believed falsely presented uses during McDonald’s leadership of the Town-County EDA. Trial testimony indicated that as much as $6.5 million of that went directly to McDonald’s personal use. On November 1, 2023 a federal court jury of six men and six women found McDonald guilty on all 34 criminal counts she was charged with, including bank fraud (10 counts), wire fraud (7 counts), money laundering (16), and aggravated identity theft (1 count). Judge Dillon later overturned four of those convictions citing inadequate evidence by statute.

Jennifer McDonald has about a month before she must again dress in incarceration garb. Below is the Harrisonburg federal courthouse where she was sentenced to 14 years on Wednesday, May 29. Royal Examiner File Photos

The first phase of what was initially said to be a three-part sentencing hearing was held on April 9, with part 2 initially forecast to be held within a week, leading to a sentencing date then being set after the court had time to review submitted arguments. But with a month-and-a-half delay to Phase 2, it appeared the court had sufficient time to review applicable case law in anticipation of those Phase 2 arguments leading to her sentencing decision coming at the conclusion of those Wednesday, May 29th arguments.

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 the charges cited above. McDonald was initially arrested and charged criminally at the state level in mid-2019.

Also during Wednesday’s hearing, McDonald was hit with a series of financial penalties. Those included $5.2 million ($5,201,329 to be precise) forfeiture of assets which the prosecution sought, what appeared to be $3,000 in court costs, as well as a “Restitution” amount cited at $2.7 million.

While a statement of financial impacts on the EDA was cited as submitted, and quite an amount of time was spent on arguments about the financial and governmental impacts of McDonald’s crimes related to the illicit movement of EDA assets, only one person rose to the court’s call for impact statements from “victims” of her crimes. That person, perhaps ironically, was ITFederal principal Truc “Curt” Tran. Tran and his company have been cited as the largest single beneficiary of illicitly moved “financial scandal” EDA assets at $12 million alleged to have been moved to it under “false pretenses” for re-development of 30 acres of the former Avtex property. Those false pretenses appeared to be publicized access to about $40 million in federal government contracts, evidence later indicated Tran’s company only had a right to bid on, and none of which was apparently won. Readers may recall one of this reporter’s first stories at the newly formed Royal Examiner in mid-2016 was that the 30-acre parcel publicly discussed for purchase by ITFederal at $2.1 million, was gifted to Tran and his company for one dollar behind closed meeting doors. It might also be recalled that former U.S. Sixth District of Virginia Congressman Bob Goodlatte championed Tran and ITFederal as outstanding economic development partners for this community.

“Jennifer, Jennifer, Jennifer, what have you done,” Tran began from the courtroom podium, looking directly at McDonald to his left at the defense table with her federal court-appointed attorneys Andrea Harris and Abigail Thibeault. One of McDonald’s convictions was of “Aggravated Identity Theft” for allegedly using Tran’s name as an interested party in one of the later-discovered-to-be fraudulent real estate transactions. Tran did cite that transaction of the time – “I still don’t know where the Buck Mountain property is,” he told the court, pointedly looking at McDonald.

However, twice Judge Dillon had to caution Tran to return to impacts of that real estate transaction in which his name was used without his knowledge when he appeared to pivot to blame McDonald for his lost government contracts to enable the Avtex site development. After the second caution, Tran ended his impact statement. Tran was found liable for over $12 million to the EDA in one civil liability case heard in Warren County Circuit Court. His finding of liability is on appeal, along with several other high-dollar EDA civil case defendants.

Front Royal Police Department arrest report for the past 7 days:

A Chicago man is in custody after fleeing from law enforcement on Saturday (May 4). Marco A. Cruz-Monroy, 27, faces multiple charges in Frederick County, including assault on a law enforcement officer and driving under the influence of drugs (DUI/DUID).

Around 9:45 a.m., motorists on I-81 reported a Dodge pickup driving recklessly, with objects being tossed from the vehicle. Virginia State Police located the truck near the 304-mile marker and attempted to stop it for reckless driving. Despite initially slowing and moving to the shoulder, the truck sped off, prompting a pursuit.

During the chase, the Dodge intentionally rammed a trooper’s vehicle, forcing it off the road. The pursuit continued to the Exit 315 ramp, where Cruz-Monroy’s truck struck a civilian vehicle, causing both vehicles to crash. Cruz-Monroy then barricaded himself in his truck, refusing to comply with commands before eventually surrendering.

While being evaluated by EMS, Cruz-Monroy became combative and bit a trooper, who suffered minor injuries and was treated at Winchester Medical Center. Cruz-Monroy is now in custody at Northwest Adult Detention Center, held without bond, with additional charges pending.

No civilians were injured during the chase or the crash.

In the wake of the April 9, Part One Sentencing Hearing of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald, the website court calendar of the 10th Western District of Virginia has finally posted a date for Part Two of that hearing. That date is Wednesday, May 29, 2024, on the 10 a.m. docket in the Harrisonburg federal courthouse where McDonald was convicted of 30 criminal counts related to the FR-WC EDA “financial scandal” circa 2014 to 2018. Those who have followed that story since it began unraveling, including on these pages from the fall of 2016 to late 2018, will recall an estimated $26-million in EDA assets was moved to unauthorized or what is now believed to be fraudulently presented uses. Trial testimony indicated McDonald moving about $6.5 million to her personal use unauthorized by the then EDA Board of Directors.

As reported in our coverage of that April 9 hearing, Part Two will hear Judge Elizabeth K. Dillon’s rulings on a number of objections filed by both the prosecution and defense counsels to the precedence of evidence submitted by the other side in written summaries to the court leading up to the April 9th start of McDonald’s sentencing hearing. Also argued on April 9 were “Forfeiture” of defendant McDonald assets, “Restitution”, and “Special Conditions” being sought at sentencing from both the prosecution and defense. While Judge Dillon ruled on a number of these objections on April 9, she took some under advisement, seeking written support from both sides to their motions arguments.

The federal courthouse in Harrisonburg, where final pre-sentencing arguments will be heard on May 29. At that Part 2 hearing, a date will be set by Judge Dillon for Part 3, when Jennifer McDonald is expected to be sentenced from 6 to 22 years in prison on her jury convictions on 30 criminal counts related to the estimated $26-million EDA ‘financial scandal’ during her executive director leadership. Royal Examiner File Photos Roger Bianchini

In addition to those rulings, prosecution and defense counsel are expected to make final arguments in support of their sentencing proposals, and Judge Dillon will set a date for Part Three of the Sentencing Hearing. Part Three is when the 47-year-old McDonald is anticipated to find out the court’s ruling on arguments for relative leniency to prison sentencing guidelines, six years, by her legal team versus the prosecution’s high-end request. The prosecution is seeking a 22-year sentence with 24 months sought for an Aggravated Identity Theft conviction of McDonald regarding the use of Truc “Curt” Tran’s name in one involved “financial scandal” real estate transaction, tacked on to a total of 240 months (20 years) being sought on McDonald’s other 29 convictions on fraud and money laundering counts.

In a crackdown on internet crimes against children, the Warren County Sheriff’s Office, in collaboration with the Northern Virginia/DC Metro Internet Crimes Against Children (ICAC) Task Force, has announced the arrest of Steven C. Sherman, a 57-year-old man from Inwood, WV. This arrest is part of a broader effort to combat the online solicitation of minors in the region.

Name: Steven C. Sherman – Description: 6’06” white male, blue eyes, and red hair – Address: Inwood, WV – Felony Offenses:
§18.2-374.3. Use of communications systems to facilitate certain offenses involving children. (x3 counts) Photo Courtesy of Eastern Regional Jail

The operation, which began covertly on February 28, 2024, involved undercover officers posing as minors online to identify and apprehend individuals attempting to exploit children. Mr. Sherman reportedly initiated unsolicited contact with an investigator who was posing as a juvenile under the age of 15. Over the course of their communications, he allegedly requested lewd photos and engaged in the transmission of obscene materials, believing he was interacting with a young girl.

On April 16, 2024, following a detailed investigation and with the assistance of the Berkeley County Sheriff’s Office, Mr. Sherman was arrested without incident and is currently held at the Eastern Regional Jail. Facing serious charges for his actions, he appeared before a magistrate and was ordered to be held without bond, pending extradition to Virginia. His court date is May 9, 2024, at the Warren County Juvenile and Domestic Relations Court.

The Warren County Sheriff’s Office has expressed gratitude towards the Berkeley County Sheriff’s Office for their support in the operation and emphasized the importance of inter-agency cooperation in tackling such critical issues. The community is also encouraged to come forward with any information related to soliciting or exploiting minors by contacting Criminal Investigations Sergeant M.R. Ramey at (540) 635-7100 or via email at mramey@warrencountysheriff.org.

This case highlights the ongoing risks and challenges posed by online interactions and the importance of vigilance in protecting vulnerable populations, especially children, from exploitation. The Warren County Sheriff’s Office remains committed to fighting against internet crimes targeting children and urges the public to report any suspicious activities.

As this case progresses, the community hopes for a resolution that reinforces the safety and security of its children and serves as a deterrent to others who might exploit the internet’s anonymity for harmful purposes.

In a move to protect children from online predators, the Warren County Sheriff’s Office has made a notable arrest following a proactive undercover operation aimed at the online solicitation of minors. This operation took place in the Warren County and Front Royal areas, showcasing the department’s commitment to safeguarding the community’s vulnerable youth.

The operation came to a head on Wednesday, March 27, 2024, when Samuel Funkhouser, a 33-year-old man from Romney, West Virginia, reached out to an undercover investigator posing as a juvenile under 15. During their communication, Funkhouser requested inappropriate photos and content, believing he was interacting with a young girl. He also sent obscene materials to the investigator, some of which included illegal content involving bestiality. This unsolicited and disturbing interaction was initiated entirely by Funkhouser, leading to swift actions by law enforcement.

Samuel Funkhouser, 5’11” white male, hazel eyes, and brown hair from Romney, WV
Felony Offenses: §18.2-374.3. Use of communications systems to facilitate certain offenses involving children (x3 counts) § 18.2-361.01. Sexual abuse of animals (x3 counts)

The investigative team, part of the Northern Virginia/DC Metro (NOVA/DC) Internet Crimes Against Children (ICAC) Task Force, coordinated by the Virginia State Police, worked diligently to identify and locate Funkhouser. On April 10, 2024, they executed their arrest with the support of the Hampshire County Sheriff’s Office. Funkhouser was apprehended without incident and is now held at the Potomac Highlands Regional Jail. He faces a court date on May 15, 2024, with no bond offered due to the severity of the charges.

The Warren County Sheriff’s Office urges the community to remain vigilant and report any suspicious activities concerning the exploitation of minors. Investigator C.J. McDaniel, who can be contacted at (540) 635-7100 or cmcdaniel@warrencountysheriff.org, is leading the call for community support to bring further perpetrators to justice.

This case highlights the critical importance of inter-agency collaboration, as the Hampshire County Sheriff’s Office played a vital role in the successful capture of Funkhouser. The Warren County Sheriff’s Office extends its gratitude to all partners involved in this operation and remains steadfast in its resolve to combat internet crimes against children. The community is encouraged to stay informed and engaged in protecting every child from the dangers of online predators.