Crime/Court
In From New York State Larry Tuttle Sr. Steps to the Plate, I Mean McDonald Federal Trial Witness Box
With the federal criminal prosecution of Jennifer McDonald again on hold, this time from Tuesday, September 19 through Friday, September 22, if not longer, due to what was described by the prosecution as an “unexpected health issue,” we decided to fill the gap with a recounting of earlier testimony this writer witnessed in the wake of his own testimony of Wednesday, September 13. As previously reported, McDonald is charged on 34 counts related to the Front Royal-Warren County Economic Development Authority (FR-WC EDA, EDA) “financial scandal,” as it has come to be known. Those charges include bank fraud, wire fraud, money laundering, and aggravated identity theft.
As reported in my lead story on my two days, September 12 and 13, in the 10th Western District of Virginia federal courthouse, among the other witnesses scheduled that day after my testimony was Larry Tuttle Sr. Tuttle identified himself as defendant Jennifer McDonald’s stepfather George Hassenplug’s cousin. He is a resident of Monroe, New York, he told the prosecution during direct examination. He also noted that he was last employed in 1993, before being in “a terrible car accident,” after which he has survived on Social Security disability benefits of about $1700 a month, he said in response to a direct examination question. Spending some time near Tuttle and what I believe was his wife in the courthouse third-floor hallway prior to either of our testimonies, I could see that he had some difficulty moving around, rising, and sitting back down.
As I watched his testimony following my own, the prosecution’s interest in Tuttle soon became apparent. He testified that as a favor to his cousin, George Hassenplug, he had signed some apparently partial real estate documents sent to him at his New York home during the time frame coinciding with some of the Jennifer McDonald real estate transactions that later came under legal scrutiny as allegedly involving misdirected EDA assets. Tuttle testified that while he knew who Jennifer McDonald was due to his cousin’s relationship with her by marriage to McDonald’s mother, that he did not know her personally and had never met her.
Asked if he was close to his cousin George Hassenplug, Tuttle replied that he “had been” from the 1990s to 2017 and that they had talked on the phone three to four times a week regularly during that period. Tuttle also testified that he didn’t own, nor was he invested in any property. As for real estate experience, he noted that he had a mortgage on a home prior to his accident.
Prosecution counsel asked Tuttle if he knew William “Billy” Biggs or had ever discussed business opportunities with him. Biggs was a long-time Front Royal-Warren County Economic Development Authority Board of Directors member and treasurer during and prior to McDonald’s EDA executive directorship, circa 2008 to 2018. Tuttle replied “no” to both questions, the second one on the “business opportunities” query after a defense objection was overruled by Judge Elizabeth K. Dillon.
Tuttle was then asked a series of questions, many about loans apparently attributed to him involving real estate transactions involving the defendant. Had he ever loaned $3 million to facilitate a real estate transaction brought to him by his cousin? Tuttle laughed as he said, “No.”
Had he ever loaned $1.9 million to McDonald’s Da Boys LLC real estate company? This one drew a somewhat nasally laugh accompanying his “No” response, leading to an apology to the court for snort-laughing his answer, which drew some sympathetic laughter from the jury.
Tuttle was also shown a “Death Settlement Agreement” with his name on it — “I’ve never seen this before in my life,” he testified. Another “No” followed a question about a $1.75-million loan on mortgages.
If I heard correctly, Tuttle estimated he currently had $29 in his savings account, leading to his level of amusement at the financial questions being asked of him, particularly his loaning large amounts of money to facilitate real estate transactions.
Tuttle did say, however, that a portion of paperwork regarding a Buck Mountain Road transaction sent to him attracted his attention enough that he asked his cousin George Hassenplug if he should sign it. He said he was told that he shouldn’t worry, that “the deal will fall through in a couple of months.” Asked if he was involved in a $1.95-million loan related to that sale, he again replied, “No.” It might be recalled that the Buck Mountain Road transaction involved another witness that day in court, William Vaught Jr. That transaction saw the sale and repurchase of that property at an approximate $600,000 loss to the buyer in under a month, as the deal apparently did “fall through,” as predicted by George Hassenplug to his cousin.
William Vaught Jr.’s testimony indicated he was told that ITFederal principal Truc “Curt” Tran was initially involved in that projected purchase but had later backed out. It is believed that the Aggravated Identity Theft federal charge against McDonald involves Tran’s assertion his name was forged in documents related to this real estate transaction. This reporter did not see Tran’s testimony due to his status as a pending witness at the time of that testimony.
Back to Tuttle’s direct examination, he was asked if he had ever received money from Jennifer McDonald. “No,” came his now familiar reply. Had he received $560,000 related to a Rileyville Road transaction? Once again, the answer was “No”.
Asked about his signature on a $1.075-million loan, Tuttle replied that he did not believe it was his. He observed that he “wrote a lot neater” than the signature on the document. He added that it was possible it was his signature, but he doubted it and did not recall signing that document.
Near the end of his direct examination, Tuttle was asked if he’d ever received money for his willingness to put his signature on the documents sent to him by his cousin. “No,” he replied. How about “gifts?” came the follow-up question, to which he responded in the positive, citing what he estimated as a $10 T-shirt sent to him. That led to the prosecution’s introduction of Exhibit 534, a photo of that T-shirt which had “That’s Mr. Tuttle” and letters appearing to be “COTB.” Asked the meaning of the T-shirt lettering, Tuttle said he was told it meant “Taking Care Of Business or something to that effect.”
On a brief cross-examination, the defense raised the specter of a Little League baseball game he had attended at which he had been asked to leave by an umpire after questioning ball and strike calls involving a nephew. The “That’s Mr. Tuttle” on the T-shirt was a reference to his responding, “That’s Mr. Tuttle to you,” to the umpire, defense counsel asserted. Tuttle said he had been asked to leave the game but denied that he had responded, “That’s Mr. Tuttle to you,” to the umpire.
And with that and a brief re-direct examination to clarify a date on one of the documents shown him, Larry Tuttle Sr.’s turn at the plate, I mean on the witness stand, ended.
Crime/Court
Traffic Stop Leads to Narcotics and Firearms Arrest
Early on June 9, 2024, at about 2:06 a.m., a routine traffic stop in Warren County arrested 29-year-old Xavier Davonne Roy of Front Royal. The stop was conducted by Lieutenant S.M. Collins of the Warren County Sheriff’s Office on Virginia Avenue.
Lieutenant Collins noticed something suspicious during the traffic stop and called for backup. K9 Master Deputy Gregory and his canine partner, K9 Roman, were dispatched to the scene. K9 Roman quickly detected something inside the vehicle, leading officers to thoroughly search.
The search revealed a small bag containing a white rock-like substance, a zippered pouch with a more significant amount of a white powdery substance, and a single blue pill. These items are suspected to be illegal narcotics and have been sent to a lab for detailed analysis.
In addition to the suspected drugs, officers found a Ruger handgun loaded with a magazine and a set of digital scales with white powder residue. This combination of items suggested not only drug possession but also intent to distribute.
As a result of the findings, Xavier Davonne Roy was arrested on several serious charges. These include:
- Felony possession of a controlled substance, schedule I or II, with intent to distribute (18.2-248)
- Felony possession of a controlled substance, schedule I or II, while in possession of a firearm (18.2-308.4)
- Felony possession of a controlled substance, schedule I or II (18.2-250)
- Misdemeanor possession of controlled paraphernalia (54.1-3466)
These charges reflect the gravity of the situation and the ongoing efforts of the Warren County Sheriff’s Office to combat drug-related activities in the community.
The use of K9 units like Roman is crucial in such investigations. Dogs trained to detect narcotics often find substances that human officers might overlook. This case highlights the importance of these specialized units in ensuring community safety.
As the investigation continues, authorities are working to identify the substances found and gather more evidence. The results from the lab tests will play a critical role in the prosecution of the case.
This arrest underscores the commitment of the Warren County Sheriff’s Office to maintaining law and order. By taking dangerous substances and firearms off the streets, they aim to create a safer environment for all residents.
Crime/Court
Federal Prosecutors Office Issues Release on McDonald Sentencing
Below is a Press Release issued by the Western District of Virginia Prosecutor’s Office on May 29, the day of Jennifer McDonald’s sentencing in the Harrisonburg federal courthouse. It offers the prosecution’s perspective on the nature of the former Front Royal-Warren County Economic Development Authority Executive Director’s crimes centered on the unauthorized misdirection for personal use of EDA cash assets and acknowledges federal and state authorities work on the case.
Testimony at trial put that total misdirected to her personal use at between $5 million and $6.5 million. Here it is cited at $5.2 million, not coincidently the amount the prosecution asked for at Wednesday’s sentencing hearing and received from the court to be forfeited by McDonald as part of her sentencing. It was explained that “forfeiture” amount was separate from any restitution or court costs that might also be ordered by the court.
As readers will recall the total amount believed misdirected to fraudulent uses in the circa 2014-2018 EDA “financial scandal” was estimated at about $26 million. On paper in civil suits and out-of-court settlements the EDA has recovered around $20 million, tempered by an estimated $8 million in legal fees. However, most of the larger civil case jury verdicts of liability totaling around $20 million are being appealed by defendants (see the Royal Examiner “EDA in Focus” news category for details on those cases). To resolve pending civil liability claims against her, McDonald gave up an estimated $9 million in real estate held by one of her real estate LLC’s to the EDA.
Here is the Office of the Federal Prosecutor’s statement in its entirety:
Jennifer McDonald Used EDA Funds As Her ‘Personal Piggy Bank’
HARRISONBURG, Va. – The former executive director of the Economic Development Authority of Front Royal and Warren County (EDA), who was convicted in November of last year of stealing more than $5 million dollars in authority funds, was sentenced today to 14 years in federal prison.
Jennifer Rae McDonald, 45, of Front Royal, Virginia, was convicted following a 9-week jury trial in November 2023 of seven counts of wire fraud, six counts of bank fraud, sixteen counts of money laundering, and one count of aggravated identity theft.
“For more than four years, Jennifer McDonald used EDA funds as her personal piggy bank, diverting public funds to purchase real estate and to pay her personal expenses” United States Attorney Christopher R. Kavanaugh said today. “Today’s sentence reflects how serious this office takes fraud and the misuse of public funds. I am thankful to the FBI and the Virginia State Police for the tireless work they did to untangle the web of lies spun by this defendant.”
“The FBI is committed to investigating elected officials who abuse their positions for personal gain,” Special Agent in Charge Stanley Meador of the FBI’s Richmond Division said today. “I am proud of the work our team and partners did to uncover Ms. McDonald’s complex fraud scheme and to bring her to justice.”
According to court documents and evidence presented at trial, McDonald was the Executive Director of the EDA, a public entity designed to attract and support businesses in Warren County and the Town of Front Royal. The EDA was overseen by a Board of Directors and supported by an administrative assistant, but at the center of the EDA was McDonald.
Beginning in 2014, McDonald began stealing money from the EDA and, for more than four years, McDonald used the bank accounts and credit facilities of the EDA to divert public funds to purchase real estate and to pay for her personal expenses. She falsified documents in order to mislead the EDA’s Board of Directors, external auditors, and Warren County and Front Royal government officials so she could continue her scheme.
When confronted by law enforcement and others, McDonald drafted fake loan documents, encouraged others to lie before a grand jury and fabricated an outrageous story, alleging the fraud was part of a “secret settlement” and invented more fake documents to cover-up her fraud.
In the end, McDonald pilfered the EDA’s bank accounts and is responsible for $5,201,329 in losses.
At trial, evidence was presented that at least $2.4 million of the money McDonald stole was used to fund her gambling – including net losses of more than $750,000.
The Federal Bureau of Investigation and Virginia State Police investigated the case.
Assistant U.S. Attorneys Sean Welsh and Rachel Swartz and Trial Attorney Andrea Broach are prosecuting the case for the United States. Updated May 29, 2024
Crime/Court
McDonald Sentenced to 14 Years in EDA ‘Financial Scandal’ Case, Will Remain Free Till Told to Report to Prison Board ‘Not Before’ June 24
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.
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.
Crime/Court
POLICE: 7 Day FRPD Arrest Report 5-13-2024
Front Royal Police Department arrest report for the past 7 days:
Crime/Court
Chicago Man Arrested After High-Speed Pursuit on I-81 in Virginia, Charged with Assault and DUI
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.
Crime/Court
McDonald Criminal Convictions Sentencing Hearing, Part 2, Set for Late May
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.
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.