Crime/Court
Jury takes less than hour to find ‘Sammy’ North liable in wife’s ‘scheme’ to move $110,000 from EDA to real estate transaction for personal gain
After just over five hours of testimony, evidence, and opening and closing arguments by plaintiff and defense counsel Tuesday, a seven-person Warren County Circuit Court civil case jury found former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald’s husband Samuel ‘Sammy’ North liable on all of its claims regarding his part in a 2015 real estate purchase on a parcel at 1309 Robinhood Lane achieved with the transfer of $110,000 in EDA funds. Those EDA claims included (i) fraud, (ii) unjust enrichment, (iii) conversion, (iv) conspiracy, (v) ultra vires (related to his wife’s exceeding her authority as an EDA official), and (vi) punitive damages.
Financially, North was found liable for the base compensatory claim of $110,000, as well as $165,000 on a finding of Statutory Conspiracy, another $350,000 in Punitive Damages on a ruling of Malicious Intent, bringing liability to $625,000. With interest, estimated at $268,000 added, North’s total liability is approximately $893,000.
Defense attorney Frank Reynolds indicated he would file a motion to overturn the verdict as unsubstantiated by civil case law just as counsel for four other EDA financial scandal civil defendants tried and found liable in July have done. Hearings on those defense motions are scheduled to be heard by Judge Bruce D. Albertson on November 30. A schedule for defense filings and plaintiff responses to facilitate the North case’s inclusion in that late November hearing was discussed prior to adjournment around 5 p.m. Tuesday afternoon, October 25. North’s civil liability trial was originally scheduled for July but was continued in the wake of a bankruptcy filing by North, which according to plaintiff counsel was later withdrawn.
Asked about the verdict, current FR-WC EDA Board of Directors Chairmen Jeff Browne, present for the trial as he was for the July cases, told Royal Examiner, “Well, it’s another win. It shows that we’ve got a good legal team and we had a good case. And it makes a real difference for the people of Warren County.”
EDA lead counsel Cullen Seltzer and assistant Kimberly Paulsrud, the latter who handled the projected graphic presentations in support of the plaintiff’s case at trial Tuesday. Royal Examiner file photos
Asked if he was concerned when alerted that the jury had reached a verdict so quickly – about 45 minutes, Browne said, “No, not really. My sense was that, that was a good sign.”
It might be noted that in closing arguments both sides’ counsel had called the evidence presented to the jury as “simple” in its nature, though disagreeing on the substance of that evidence as to the defendant’s knowledge or lack thereof on McDonald’s use of EDA assets.
“And the jury listened to that evidence and made a decision,” Browne noted of the verdict and the time taken to reach it. He noted that more civil cases will be coming to court in March to April of 2023. Of the November hearing on the recent defendant motions to overturn jury verdicts, Browne added, “I don’t think there will be any changes in November, I hope not. And we’ll have the opportunity to start gathering assets.”
With the North verdict and liability ruled by the jury added to the four made in July, pending no reversal of verdicts on November 30, the EDA is poised to recover over $15 million in assets on these five cases. Coupled with an out-of-court “no-fault” settlement with McDonald, on paper at least, involved civil case defendants have been ruled or offered liability for about $24 million of the estimated $26-million EDA “financial scandal” circa 2014-2018.
Trial debate
As with the July civil trials of April Petty, William Lambert, Donald Poe and Earthright Energy, and Truc “Curt” Tran and ITFederal related to the EDA financial scandal uncovered in 2018, plaintiff and defense arguments in the EDA versus North case revolved, at least in part, around what the defendant knew or didn’t know about Jennifer McDonald’s lack of unilateral authority to move EDA assets related to the defendant’s use of those assets in what plaintiff counsel referred to as “a scheme”.
Defense counsel Reynolds argued that plaintiff council had failed to present any evidence proving his client knew his wife did not have the authority to transfer $110,000 of EDA funds for his purchase of a townhouse at 1309 Robinhood Lane in September 2015. In fact, defense counsel argued that the $110,000 transfer to facilitate the $107,500 purchase, plus closing costs, by her husband could have been authorized by an EDA Asset Committee. Reynolds pointed to his client’s and Settlement Title staff’s recollection of the presence of then-EDA Board Chair Patty Wines, since diseased, at the Robinhood Lane property closing, to argue that it could have been an authorized transfer related to the EDA’s efforts to develop affordable workforce housing for young professionals.
However, EDA lead attorney Cullen Seltzer countered those arguments with one of the three witnesses he called, former Warren County and EDA attorney Dan Whitten. In fact, Tuesday’s trial was accomplished in one day with the calling of a total of only four witnesses: Closing company Service Title’s Records Custodian Kelly Shaney, Whitten, and Jennifer McDonald by the plaintiff, and defendant Samuel North by the defense.
Under direct examination Whitten pointed out that any transfer of over $50,000 of EDA funds for acquisitions would have to be approved by the full EDA Board of Directors in an open session vote. Whitten testified that McDonald’s 2015 transfer of $110,000 for her husband’s purchase of 1309 Robinhood Lane had never been discussed in open or closed session, and never approved by the EDA board. EDA counsel Seltzer also pointed to North’s invocation of his 5th Amendment right not to self-incriminate when asked at deposition why the Robinhood Lane parcel had been purchased.
Jeff Browne, left, and Dan Whitten at EDA Board of Directors meeting prior to Whitten’s departure to another county attorney role.
On cross examination, Whitten expressed no knowledge of an EDA Asset Committee in 2015 that might have discussed or forwarded the transaction. Also on cross examination by the defense, McDonald testified that the EDA’s Asset Committee predated her 2008 to 2018 tenure as EDA executive director. During defense closing argument, Reynolds hammered at Whitten’s lack of knowledge of and absence from any EDA Asset Committee meetings to indicate a gap in the plaintiff’s case alleging the $110,000 transfer was unauthorized. But in his rebuttal closing argument, EDA attorney Seltzer countered that no EDA committee, likely comprised of two board members, could have authorized a transfer of $110,000 per the EDA policy on full-board approval of such transfers over $50,000.
Financial difficulty or not
In opening arguments and some evidentiary submissions, EDA counsel presented a scenario of financial difficulty by North and his wife in 2015 leading to the decision to move EDA assets to facilitate North’s purchase of 1309 Robinhood Lane. Seltzer presented records indicating that North’s plumbing business had lost over $71,000 between 2013 to 2016, while the couple was claiming gambling income/losses totaling $1.125-million over the same four-year period. Defense counsel countered that the “income/losses” tax claims actually indicated a break-even gambling scenario, rather than a high loss one of over $500,000 creating financial difficulty for the couple.
In closing, Reynolds told the jury that the plaintiff had failed to show “one bit of information here other than they were married to each other” to implicate his client in a conspiracy to defraud the EDA. North had testified on direct examination that his wife handled the couple’s taxes and financial affairs, and he had been unaware of the large gambling claims until shown them at deposition. In response to a question from his attorney, North estimated the most he’d ever lost gambling in a year was $2,000. Queried by EDA counsel about his signing off on tax returns he had not reviewed, North said he trusted his wife on such matters, adding that, “Finances were never my niche.”
Implication of 5th Amendment responses
One key piece of plaintiff evidence that opened their evidentiary case was a video excerpt of the above-referenced deposition given by the defendant to EDA counsel on March 30, 2021. During questioning on details of the Robinhood Lane purchase, North invoked his 5th Amendment right not to self-incriminate what Seltzer later told the jury was a total of 45 times. Called as the plaintiff’s final witness, questioned about her transfer of the $110,000 for her husband’s September 2015 purchase of the 1309 Robinhood Lane parcel, a parcel EDA counsel noted North would gift to his wife in November of that year, McDonald invoked her 5th Amendment right not to self incriminate about 11 times before Seltzer ended his direct examination.
‘Sammy’ North’s arrest on criminal charges – later dropped along with others facing speedy trial statute violations – related to the EDA financial scandal swirling around his wife’s tenure as EDA executive director, is a reminder of the potential criminal liability around the EDA civil litigations surrounding alleged co-conspirators of Jennifer McDonald related to her movement of EDA assets over a several year period. Since the criminal aspect was turned over to federal authorities from a state special prosecutor’s office, only McDonald has been re-indicted on criminal charges.
During closing arguments plaintiff and defense counsel debated the implication of those 5th Amendment responses by both North at deposition and McDonald on the stand. Reynolds noted simple care in the face of possible criminal indictments on related matters, while Seltzer for the EDA stressed to the jury that the 5th Amendment is invoked specifically in support of one’s Constitutional right not “to self-incriminate” regarding potential criminal charges.
It would appear from its quick finding of civil liability that the latter plaintiff argument held the most weight for the seven jurors during their deliberations.
The Warren County Courthouse has seen a flurry of EDA civil case activity in recent months resulting in 5 of 5 verdicts of personal liability, 7 of 7 including 2 related company liability findings in 2 of those cases.
Crime/Court
McDonald Trial Conclusion — So Close and Yet So Far Away
After a second week (Sept. 19 to 22) and an additional day, Monday, September 25, lost to the “unexpected health issue” or “unexpected circumstance” referenced at a motions hearing last week, the federal criminal prosecution of former Front Royal-Warren County Economic Development Director Jennifer McDonald was again put on hold on Tuesday, September 26. And with the defendant again the only principal absent at the defense or prosecution tables, and no court official and none of the 15 jurors and alternates missing, the smart money “in Vegas” or at Charles Town’s Hollywood Casino is on McDonald as the focal point of that unexpected “health issue” or “circumstance.” In fact, it might be recalled that in the wake of one of her arrests, while her prosecution was initially at the state level, McDonald had to be transported from jail to a hospital for medical care, believed to be heart rate or blood pressure related.
Mug shot of Jennifer McDonald following one of her two summer of 2019 arrests following indictments at the state level. She was hospitalized for a time following one of those arrests. Royal Examiner File Photo
In fact, during an 8:30 a.m. motions hearing, defense counsel forwarded a motion for a mistrial due to the repeated delays and uncertainty on a time frame moving forward at trial. Lead prosecuting attorney Sean Welsh countered the mistrial argument, citing case histories and circumstances of longer delays in which mistrial motions were denied. Welsh also told the court he didn’t feel the defense had “proved anything beyond speculation” to justify a mistrial, including any “cumulative” negative impact on jurors from delays.
After the hearing was closed to the media or the public several times to let health details and other personal variables of involved parties not be made public, Judge Elizabeth K. Dillon posed the alternative of “briefly suspending the trial” and resuming it as an alternative to a mistrial. Dillon said she would take the defense mistrial motion “under advisement.” However, the effort to pin down a coming week in which to continue the trial, which appears to currently be delayed for an unknown amount of time, seemed to indicate the judge preferred the alternative to declare a mistrial.
Prosecutor Welsh pointed out how close the trial likely is to being completed and handed over to the jury for deliberation. He noted the prosecution team had called 56 witnesses to the stand, with just one remaining to be called. He forecast that it now seemed the defense would call only one witness, with closing arguments possibly coming within two days. The defense witness list has been cited at two, with a third potentially to be added. The defendant is not anticipated to take the stand.
The initial motions hearing convened at 8:30 a.m. was recessed at 9:34 a.m. until 11 a.m. when the jury was instructed to report to court Tuesday. Reconvened at 11 a.m., the hearing was again closed for a time as the court queried jurors on their prospective plans for the coming weeks under consideration for restarting the trial without the current day-to-day uncertainty it would proceed. A time frame of two to six weeks was cited for reconvening the trial if a decision to suspend was reached. However, the prosecution wondered if additional medical information might not be helpful in pinning down how soon a restart might be feasible. When Welsh proposed such input, possibly by subpoena, as early as the following day, Judge Dillon called that scenario “highly unlikely.” The court adjourned at 11:30 a.m. with no clear path forward apparent.
So, a decision on how this trial will proceed and when, and possibly even if it will proceed, is currently on hold pending additional information to be received by the court.
As previously reported, after inheriting the case from two state prosecutors’ offices on August 25, 2021, a federal grand jury handed down 34 federal criminal indictments on a variety of charges, including bank fraud, wire fraud, money laundering, and aggravated identity theft against the former FR-WC EDA executive director.
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.
The 10th Western District of Virginia federal courthouse in Harrisonburg, site of the again stalled criminal prosecution of Jennifer McDonald. Photo 10th Western District of Va. federal courthouse website.
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.
An early 2018 EDA board meeting, before suspicions arose about then EDA Executive Director Jennifer McDonald, center-facing camera, movement of EDA assets. EDA board Treasurer William “Billy” Biggs is seated, back to the camera at the far right. Monroe, New York resident Larry Tuttle Sr. testified that he didn’t know Biggs and had never discussed business opportunities with the EDA treasurer despite Tuttle’s name appearing on some financial documents suspected to have been involved in the movement of EDA assets. Royal Examiner File Photo Roger Bianchini
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
UPDATE 2: ‘Unexpected Circumstance’ Delays McDonald Federal Criminal Trial for rest of week
(Writer’s Update: On Wednesday, Sept. 20, for the second consecutive day the federal criminal trial of former FR-WC EDA Executive Director Jennifer McDonald was cancelled. This time there was no hearing to discuss reasons or other procedural matters as there was the previous day. One might guess the cause was a continuation of the “unexpected health issue” or “unexpected circumstance” mentioned at hearing the previous day, as reported below. Further information will be reported as it becomes available. And in a later update, the trial has been cancelled for the rest of the week. It is scheduled to resume Monday, Sept. 25 at 8:30 a.m.)
With 10th Western District of Virginia Federal Court Judge Elizabeth K. Dillon’s 9:30 a.m. arrival, court was convened on schedule Tuesday, September 19, in the criminal trial of Jennifer McDonald related to the estimated $26-million Front Royal-Warren County Economic Development Authority (FR-WC EDA, EDA) “financial scandal,” circa 2014 to 2018. As has been reported, after inheriting the case from two state prosecutors offices on August 25, 2021, a federal grand jury handed down 34 federal criminal indictments on a variety of charges, including bank fraud, wire fraud, money laundering, and aggravated identity theft against the former EDA executive director. Those charges relate to the alleged unauthorized transfer of EDA assets to McDonald’s own personal benefit, as well as that of alleged co-conspirators.
But rather than starting the trial on the second day of a week in which it has been forecast the trial could be coming to a fairly rapid conclusion with closing arguments by weeks end, the judge was informed that an unanticipated issue would put the trial on hold that day.
An “unexpected health issue” was referenced by lead prosecutor Sean Welsh as the reason for what apparently will be a one-day delay of the trial. However, defense counsel told the judge that the jury had been told an “unexpected circumstance” would be the reason they would not be needed at court that day. It might be noted that the lone missing person at the prosecution or defense tables during this discussion appeared to be defendant Jennifer McDonald.
In the defendant and jury’s absence several procedural matters were broached for additional discussion. One was review of submitted jury instructions. Another was gaining defense approval of allowing a prosecution witness’s testimony that had been scheduled to be heard Tuesday, to be submitted alternately without the need of her returning the following day from her Virginia Beach home to testify. It was explained her testimony would be fairly brief and was to be introduced to allow a related piece of evidence to be admitted as a prosecution exhibit (why does that sound familiar?). A final matter discussed before court recessed was the possible addition of a third defense witness identified as “James Woods”.
Following the court recess this reporter and another present (see you tomorrow, Alex?) tried to place the name James Woods. All we could come up with was the actor. — Wouldn’t want to miss THAT testimony, “Woods” we?
Crime/Court
Warren County Grand Jury – September 2023 indictments
IN THE CIRCUIT COURT OF WARREN COUNTY, THE GRAND JURY CHARGES THAT:
TREVOR SUTPHIN
On or about April 18, 2023, in the County of Warren, Trevor James Sutphin did unlawfully and feloniously take, obtain, or withhold a credit card or credit card number from the person, possession, custody, or control of another without the cardholder’s consent, in violation of §18.2- 192 of the Code of Virginia, 1950, as amended. VCC: FRD-2360-F9
JEREMY CHAPMAN
On or about June 19, 2023, in the County of Warren, Jeremy Austin Chapman did unlawfully and feloniously, having received a visible or audible signal from a law-enforcement officer to bring his motor vehicle to a stop, drive such motor vehicle in a willful or wanton disregard of such signal so as to interfere with or endanger the operation of the law-enforcement vehicle or endanger a person, in violation of §46.2-817 of the Code of Virginia, 1950, as amended. VCC: REC-6624-F6
CRYSTAL NOREEN
On or about December 18, 2022, in the County of Warren, Crystal Nicole Noreen did unlawfully and feloniously possess a Schedule I or II controlled substance in violation of Section 18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR- 3022-F5
CHRISTOPHER MCCAULEY
COUNT ONE: On or about July 25, 2023, in the County of Warren, Christopher Michael McCauley did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
COUNT TWO: On or about July 25, 2023, in the County of Warren, Christopher Michael McCauley did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
TOBY FINCHAM
On or about May 24, 2023, in the County of Warren, Toby Randall Fincham did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act, in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
ERIC JENKINS
COUNT ONE: On or about June 13, 2022, in the County of Warren, Eric Levi Jenkins did unlawfully and feloniously possess with intent to distribute a Schedule I or II controlled substance, to wit: Methamphetamine, having previously been convicted of two or more such offenses or of substantially similar offenses in any other jurisdiction which occurred before the date of the offense alleged in the indictment, in violation of Section 18.2-248 (C), of the Code of Virginia, 1950, as amended. VCC: NAR-3087-F9
COUNT TWO: On or about June 13, 2022, in the County of Warren, Eric Levi Jenkins did unlawfully and feloniously possess with intent to distribute a Schedule I or II controlled substance, to wit: Psilocyn, having previously been convicted of two or more such offenses or of substantially similar offenses in any other jurisdiction which occurred before the date of the offense alleged in the indictment, in violation of Section 18.2-248 (C), of the Code of Virginia, 1950, as amended. VCC: NAR-3087-F9
COUNT THREE: On or about February 6, 2023, in the County of Warren, Eric Levi Jenkins, while a prisoner in a state, local, or community correctional facility or in the custody of an employee thereof, made, procured, secreted, or possess a weapon capable of causing death or bodily injury, in violation of Section 53.1-203 of the Code of Virginia, 1950, as amended. VCC: PRI-3295-F6
TRINA TODD
On or about May 13, 2023, in the County of Warren, Trina Anne Todd did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act, in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
JEREMY RALSTON
On or about June 30, 2023, through July 4, 2023, in the County of Warren, Jeremy Allen Ralston did unlawfully and feloniously violate a protective order issued pursuant to § 16.1-279.1 by making contact prohibited in such order with a family or household member, the accused having previously committed two or more prior offenses of violating a protective order. The accused committed the instant offense within twenty years of the first conviction. Either the instant or one of the prior offenses was based on an act or threat of violence, in violation of § 16.1-253.2 of the Code of Virginia, 1950, as amended. VCC: PRT-5002-F6
NO PHOTO AVAILABLE
On or about April 17, 2023, in the County of Warren, Denise Danielle Roles did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act, in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
KENNETH HANNA
COUNT ONE: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously manufacture, sell, give, distribute, or possess with the intent to manufacture, sell, give, or distribute, a controlled substance classified in Schedule I or II of the Drug Control Act, in violation of §18.2-248 of the Code of Virginia, 1950 as amended. VCC: NAR-3043-F9
COUNT TWO: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously sell, give, or distribute or possess with the intent to sell, give, or distribute more than one ounce but not more than five pounds of Marijuana, in violation of §18.2-248.1 of the Code of Virginia, 1950, as amended. VCC: NAR-3032-F5
COUNT THREE: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously maliciously cause bodily injury to Caitlin Silvis by means of any acid, lye, or other caustic substance or agent in violation of Section 18.2-52 of the Code of Virginia, 1950 as amended. VCC: ASL-1327-F9
COUNT FOUR: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously possess a Schedule I or II controlled substance, in violation of Section 18.2-250, of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
COUNT FIVE: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously distribute a Schedule 1 or II controlled substance in violation of Section 18.2-248, of the Code of Virginia, 1950, as amended. VCC: NAR-3045-F9
COUNT SIX: On or about October 17, 2022, in the County of Warren, Kenneth Wayne Hanna did unlawfully and feloniously distribute a Schedule I or II controlled substance in violation of Section 18.2-248, of the Code of Virginia, 1950, as amended. VCC: NAR-3045-F9
DOUGLAS HATCHER
COUNT ONE: On or about March 23, 2023, in the County of Warren, Douglas T. Hatcher did unlawfully and feloniously, while being over the age of eighteen or older, used a communications system or another electronic means, for the purposes of soliciting, with lascivious intent, a person the accused knew or had reason to believe was a child at least fifteen years of age but less than 18 years of age to knowingly and intentionally expose his sexual or genital parts to a child to whom he was not legally married or propose that the child expose her sexual or genital parts to the accused. The accused is seven or more years older than the child the accused knew or had reason to believe was a child at least 15 years of age but less than 18 years of age who was the subject of the solicitation, in violation of Section 18.2-374.3(D) of the Code of Virginia, 1950, as amended. VCC: OBS-3690-F5
COUNT TWO: On or about March 23, 2023, in the County of Warren, Douglas T. Hatcher did unlawfully and feloniously, while being over the age of eighteen or older, used a communications system or another electronic means, for the purposes of soliciting, with lascivious intent, a person the accused knew or had reason to believe was a child at least fifteen years of age but less than’18 year’s of age to knowingly and intentionally expose his sexual or genital parts to a child to whom he was not legally married or propose that the child expose her sexual or genital parts to the accused. The accused is seven or more years older than the child the accused knew or had reason to believe was a child at least 15 years of age but less than 18 years of age who was the subject of the solicitation, in violation of Section 18.2-374.3(D) of the Code of Virginia, 1950, as amended. VCC: QBS-3690-F5
MICHAEL SUTPHIN
COUNT ONE: On or about June 6, 2023, in the County of Warren, Michael Anthony Sutphin did unlawfully and feloniously impede the blood circulation or respiration of P.H. without such person’s consent by knowingly, intentionally, and unlawfully applying pressure to the neck of such person resulting in wounding or bodily injury, in violation of § 18.2-51.6 of the Code of Virginia, 1950, as amended. VCC: ASL-1347-F6
COUNT TWO: On or about June 6, 2023, in the County of Warren, Michael Anthony Sutphin did unlawfully and feloniously while being a parent, guardian, or a person responsible for the care of P.H., a child under 18 years of age, cause or permit serious injury to the life or health of such child by a willful act, omission, or refusal to provide necessary-tare, in violation of Section 18.2-371.1 of the Code of Virginia, 1950, as amended. VCC: FAM-3806-F4
ROBERT RILEY
COUNT ONE: On or about March 7, 2023, in the County of Warren, Robert Michael Riley did unlawfully and feloniously distribute a Schedule I or II controlled substance in violation of Section
18.2-248, of the Code of Virginia, 1950, as amended. VCC: NAR-3045-F9
COUNT TWO: On or about March 7, 2023, in the County of Warren, Robert Michael Riley did unlawfully and feloniously distribute a Schedule I or II controlled substance, in violation of Section
18.2-248, of the Code of Virginia, 1950, as amended. VCC: NAR-3045-F9
COUNT THREE: On or about March 13, 2023, in the County of Warren, Robert Michael Riley did unlawfully and feloniously possess with intent to distribute a Schedule I or II controlled substance, in violation of Section 18.2-248 of the Code of Virginia, 1950, as amended. VCC: NAR-3043-F9
COUNT FOUR: On or about March 13, 2023, in the County of Warren, Robert Michael Riley did unlawfully and feloniously possess with intent to distribute a Schedule I or II controlled substance, in violation of Section 18.2-248 of the Code of Virginia, 1950, as amended. VCC: NAR-3043-F9
CARLTON WATSON
On or about June 24, 2023 in the County of Warren, Carlton Derek Watson did unlawfully and feloniously assault and batter Katherine Cook, a family or household member, after having been at least twice previously convicted of a combination of assault and battery, malicious or unlawful wounding in violation of Section 18.2-51, aggravated malicious wounding in violation of Section 18.2-51.2, malicious bodily injury by means of a substance in violation of Section 18.2- 52, strangulation in violation of Section 18.2-51.6, or an offense under the law of another jurisdiction which has the same elements of the preceding offenses. The accused committed the prior offenses against a family or household member within the past twenty years, with the offenses having occurred on different dates, in violation of Section 18.2-57.2 of the Code of Virginia (1950) as amended. VCC: ASL-1316-F6
JOHN LANDERS
On or about August 5, 2023, in the County of Warren, John Franklin Landers, II, did unlawfully and feloniously assault and batter Amira Pinson, a family or household member, after having been at least twice previously convicted of assault and battery against a family or household member within the past twenty years with such offenses occurring on different dates, in violation of Section 18.2-57.2 of the Code of Virginia (1950) as amended. VCC: ASL-1316-F6
NO PHOTO AVAILABLE
On or about May 24, 2023, in the County of Warren, Amanda Hope Whittaker did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
JASON CLARY
COUNT ONE: On or about June 7, 2023, in the County of Warren, Jason Elliott Clary did unlawfully and feloniously drive or operate a motor vehicle while under the influence of alcohol, this being a third offense committed within five years of an offense under Section 18.2-266, in violation of Sections 18.2-266 and 18.2-270 of the Code of Virginia, 1950, as amended. VCC: DWI-54 50-F6
COUNT TWO: On or about June 7, 2023, in the County of Warren, Jason Elliott Clary did unlawfully and feloniously drive a motor vehicle while violating Section 18.2-36.1, 18.2-51.4, 18.2-266,
subsection A of Section 46.2-341.24, or a substantially similar local ordinance or law of another jurisdiction after having been previously convicted of a violation of Section 18.2-36.1, 18.2- 51.4, 18.2-266, subsection A of Section 46.2-341.24, or a substantially similar local ordinance or law of another jurisdiction The revocation of the license of the accused was based on a conviction of at least one offense committed after July 1, 1999, in violation of Section 46.2-391 of the Code of Virginia, 1950, as amended. VCC: LIC-6860-F9
COUNT THREE: On or about June 7, 2023, in the County of Warren, Jason Elliott Clary, while a prisoner in a local community correctional facility or in the custody of an employee thereof, did feloniously, unlawfully, and intentionally secrete or have in his possession a chemical compound which he has not lawfully received, in violation of Section 53.1-203 of the Code of Virginia, 1950, as amended. VCC: PRI-3260-F6
JOSEPH HEATH
COUNT ONE: On or about November 7, 2022, in the County of Warren, Joseph John Heath did unlawfully and feloniously, knowingly and intentionally possess a controlled substance, to wit: Methamphetamine listed in Schedule I or Schedule II of the Drug Control Act, in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
COUNT TWO: On or about November 7, 2022, in the County of Warren, Joseph John Heath did unlawfully and feloniously, knowingly and intentionally possess a controlled substance, to wit: Fentanyl listed in Schedule I or Schedule II of the Drug Control Act, in violation of § 18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
MICHAEL KENNEDY
On or about July 19, 2023, in the County of Warren, Michael Dale Kennedy, Jr., did unlawfully and feloniously, knowingly, and intentionally possess a controlled substance listed in Schedule I or Schedule II of the Drug Control Act, in violation of §18.2-250 of the Code of Virginia, 1950, as amended. VCC: NAR-3022-F5
JERRY BURACKER
COUNT ONE: On or about October 12, 2022, in the County of Warren, Jerry Wayne Buracker did unlawfully and feloniously forge, with the intent to defraud and to the prejudice of another’s rights, a draft or check, or any other writing, in violation of §18.2-172 of the Code of Virginia, 1950, as amended. VCC: FRD-2520-F5
COUNT TWO: On or about October 12, 2022, in the County of Warren, Jerry Wayne Buracker did unlawfully and feloniously utter or attempt to employ as true a check, knowing such document to be forged, in violation of § 18.2-172 of the Code of Virginia, 1950, as amended. VCC: FRD-2521-F5
AVERY WOOD
COUNT ONE: On or about November 16, 2022, in the County of Warren, Avery Miguel Wood did unlawfully and feloniously, while being a person eighteen (18) years of age or older, use a communications system for the purposes of soliciting with lascivious intent a person the accused knew or had reason to believe was a child less than fifteen years of age to knowingly and intentionally expose his sexual or genital parts to a child to whom he was not legally married or propose that such child expose her sexual or genital parts to the accused, or propose to such child
the performance of sexual intercourse, or anal intercourse, cunnilingus, fellatio, or anilingus or any act constituting an offense under § 18.2-361. The accused is seven or more years older than the
child the accused knew or had reasons to believe was a child less than fifteen years of age who was the subject of the solicitation. This is a first offense in violation of Section 18.2-374.3(C)
of the Code of Virginia (1950), as amended. VCC: OBS-37Q2-F9
COUNT TWO:c On or about November 16, 2022, in the County of Warren, Avery Miguel Wood did unlawfully and feloniously, while being a person eighteen (18) years of age or older, use a communications system for the purposes of soliciting with lascivious intent a person the accused knew or had reason to believe was a child less than fifteen years of age to knowingly and intentionally expose his sexual or genital parts to a child to whom he was not legally married, or propose that such child expose his sexual or genital parts to the accused, or propose to such child
the performance of sexual intercourse, or anal intercourse, cunnilingus, fellatio, or anilingus or any act constituting an offense under § 18.2-361. The accused is seven or more years older than the
child the accused knew or had reasons to believe was a child less than fifteen years of age who was the subject of the solicitation. This being a second or subsequent offense in violation of Section
18.2-374.3(C) of the Code of Virginia (1950), as amended. VCC: OBS-37Q3-F9
COUNT THREE: On or about November 22, 2022, in the County of Warren, Avery Miguel Wood did unlawfully and feloniously and knowingly reproduce, sell, give away, distribute,
electronically transmit, display, purchase, or possess child pornography with intent to sell, give away, distribute, transmit, or display it, in violation of Section 18.2-374.1:1(C) of the Code of Virginia (1950), as amended. VCC: QBS-3680-F9
Crime/Court
Assault Suspect Apprehended After Intense Manhunt
Joint Law Enforcement Efforts Lead to Quick Arrest in Front Royal Assault Case.
In a series of swift developments starting Sunday, the Front Royal Police Department, with the assistance of several law enforcement agencies, apprehended a suspect involved in a grievous assault that left one individual critically injured.
The chain of events began on the evening of September 17, 2023, when officers responded to a distressing report of a break-in and assault on S. Marshall Street. Upon their arrival, they found a severely injured individual outside a home. The injuries were so grave that after an initial treatment at Warren Memorial Hospital, the victim was immediately transferred to Winchester Medical Center for emergency surgery.
The gravity of the situation was clear, and the Front Royal Police Department wasted no time in their investigation. Their efforts quickly bore fruit as they identified Anthony M. Stewart as the prime suspect. However, by the time this identification was made, Stewart had already fled the scene. Described as a 5’10” male with brown eyes and hair, Stewart’s last known address was in Front Royal, Virginia. With charges including aggravated malicious wounding, burglary, and violation of protective order provisions hanging over his head, the manhunt was intense.
Anthony M. Stewart Description: 5’10”, male, Brown Eyes, Brown Hair Address: Front Royal, Virginia Offenses: § 18.2-51.2. Aggravated malicious wounding. § 18.2-89. Burglary. § 16.1-253.2. Violation of provisions of protective orders.
A day after the incident, on September 18, the chase concluded. Stewart was detained by the combined efforts of the United States Marshals Service and the Martinsburg Police Department in Martinsburg, West Virginia. He was then placed in the custody of the Eastern Regional Jail. Presented before the magistrate, he was denied bond and is currently awaiting extradition back to Virginia. His court hearing for the said offenses is scheduled for October 12, 2023, at the Warren County Juvenile and Domestic Relations Court.
In their official statement, the Front Royal Police Department expressed its gratitude towards the Warren County Sheriff’s Office, Martinsburg Police Department, and the United States Marshals Service for their invaluable help in apprehending Stewart. Detective M.R. Ramey, who is leading the investigation, urges anyone with additional insights on the case to reach out at (540) 636-2208 or mramey@frontroyalva.com.
The swift and collective efforts of law enforcement showcase the community’s commitment to safety and justice. Such coordination and determination provide a clear message: those who threaten the peace and security of Front Royal residents will face the full force of the law.
Crime/Court
A Day in the Federal Criminal Prosecution of Jennifer McDonald
After an unexpected near-testimony adventure to Harrisonburg Federal Court the previous day — “We need you here now!” — on Wednesday, September 13, your humble reporter was called to testify in the third week of the federal criminal prosecution of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald. McDonald is charged on 34 counts related to the Town-County EDA (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 in what has been estimated as a $26-million unauthorized movement and use of EDA assets to the personal benefit of her and alleged co-conspirators.
Actually, it was the fourth week since the trial’s August 21st start. However, the post-Labor Day holiday week of September 5th to 8th was lost to a COVID outbreak among unnamed involved parties. The trial was initially forecast to take six weeks to complete. It might be noted that on September 13, McDonald was the only person with a COVID mask on at the defense table. And no one that I saw on the prosecution side or among the 15 jurors and alternates present wore a mask. Judge Elizabeth K. Dillon began the day mask-less, however, after a witness appeared wearing a mask who explained she had recently had COVID, the judge opted for a mask the rest of the day despite two court clerks spraying the witness stand next to the Judge’s seat down with disinfectant following that witnesses’ testimony — better safe than sorry.
As instructed, this witness, thanks to navigator/tag-team driver Paula’s assistance, arrived by 8 a.m. at the Harrisonburg federal court building for the scheduled 8:30 a.m. trial start that day. We then made our way to the third-floor courtroom area, where we settled in hallway seats with other scheduled witnesses as motions arguments were already being heard inside the courtroom.
The 10th Western District of Va. federal courthouse in Harrisonburg is where the criminal trial of former FR-WC EDA Executive Director Jennifer McDonald is being held. Due to ‘complexity’ issues revolving around its over a million pages of documentary evidence, as well as recusal issues in WC, it has passed through 2 state prosecutors offices in Warren and Rockingham Counties before landing on the federal court’s doorstep. A federal grand jury returned 34 criminal indictments against McDonald on August 25, 2021. Photo 10th Western District of Va. federal courthouse website
Those motion discussions apparently included a third denial by Judge Dillon of the defense’s attempt to have this witness’s testimony excluded from the trial. That most recent motion was made the previous afternoon as this witness traveled south after being called around 2:45 p.m. by the prosecution’s victim-witness coordinator and told the trial was moving faster than expected and I would be needed to testify prior to adjournment on Tuesday, September 12.
Information garnered from some present through some of those motions filings was that the defense was trying to exclude evidence related to McDonald’s gambling excursions to Charles Town’s Hollywood Casino over a number of years paralleling her alleged misdirection of EDA assets to her own use and benefit. At any rate, the combination of that defense motion and an accident on I-81 southbound a bit north of Harrisonburg that blocked all lanes, leading to a ponderously slow detour on Route 11 around the wreck, led to no testimony from this witness the afternoon of Tuesday, September 12.
During a pre-trial meeting with lead prosecutor Sean Welsh, this witness was informed he would be questioned about his interview (late January 2018) with McDonald and subsequent Royal Examiner article published February 8, 2018, during which the EDA executive director claimed to have won a total of $1.8-million over a three-year period playing the slot machines at Charles Town’s Hollywood Casino. McDonald asserted it was this cash flow that allowed her to make some high-dollar residential real estate investments through her Da Boyz Real Estate LLC, among other purchases and financial assistance to some family members. It should be noted that as an EDA director, she was not allowed to invest in commercial real estate transactions. See “EDA Director Jennifer McDonald parlays casino winnings into real estate investments”
Under direct examination by Welsh, this witness verified the content of the above-linked story and the circumstance of it coming about, along with other details. Those details included recollection of what information was on what McDonald told me were tax receipts issued with her winnings, which she is holding up in a photo accompanying the article.
Photo accompanying this reporter’s Feb. 8, 2018, Royal Examiner story on Jennifer McDonald’s claim of winning $1.8 million in 3 years of slot machine playing at Charles Town’s Hollywood Casino, which she said she turned into real estate investments and other personal family expenditures. Royal Examiner File Photos Roger Bianchini
That recollection was that while containing the ID of Hollywood Casino and a variety of numbers, that I could not verify them as or as not the winning tax receipts McDonald asserted them to be. Asked by the prosecution how my professional relationship with McDonald had been leading up to that interview and story, I responded that it had generally been cordial and helpful, dating to her time as an assistant to past EDA Executive Directors Stephen Heavener and Paul Carroll prior to her succeeding them around 2008. I also testified that despite a shared personal skepticism (with my then-Royal Examiner colleague and editor Norma Jean Shaw) about the huge gambling winnings aspect of the story, we decided to publish it as presented and see how it played to the public, including involved parties at the EDA and town and county governments.
And without even a nod “goodbye” from the defense side of the room, I guess because they didn’t want me to testify in the first place, I was released as a witness, meaning at last, I would be able to observe the trial as it progressed from this point forward as my work schedule permitted me to go to Harrisonburg.
And it proved to be an interesting balance of the day in court. Subsequent witnesses called by the prosecution included, in order of appearance following my testimony, Larry Tuttle Sr., the cousin of McDonald’s step-father George Hassenplug; Rappawan Vice-President William Vaught Jr.; McDonald’s aunt Jeanette Campbell, a broker with Campbell Realty/Century 21; Hollywood Casino Risk-Compliance Director Laura Gatto; and Virginia State Police Investigator Brad Gregor. I will begin my description of the testimony of these witnesses with Hollywood Casino’s Laura Gatto, as it relates most directly to my above-referenced testimony.
On direct examination, Gatto explained “player records” kept through what she termed “player cards” with which the casino tracks the gambling efforts, wins and losses, including money in/money out on slot machines. She also noted the casino would not pay out jackpots — wins over $1200 — if someone is using another person’s player card. And while on cross-examination defense counsel would attempt to demean the accuracy of these tracking systems, Gatto responded by noting that while not given to be used by casino players to report their tax payments and debt, the casino itself uses these records as a tool to build its business model and in recording its tax responsibilities.
Back on direct examination, Gatto said that McDonald reached the level of “Icon Player” on the slots. And if I got the numbers right, and they were big ones, Gatto stated that Hollywood Casino’s player records indicated that in the period from 2014 to 2018 on the house slot machines, Jennifer McDonald cashed out $17,059,450.25 while cashing in $21,778,337.46. That is over a $4.7 million deficit of playing versus winning, $4,718,887.21, to be exact. And if I am interpreting these numbers correctly, it would seem to indicate that while there may have been points where McDonald was on the plus side, perhaps even significantly, it would seem unlikely that she would have been plus $1.8 million in late January 2018. That is because to come out $4.7 million on the downside at the end of 2018, she would have had to hit an 11-month losing streak totaling over $6.5 million. Now, I’m a word guy, not a numbers guy, but even I can see that’s an exceptionally bad slide, especially for an “Icon Player.” But I guess there’s a reason they call them “one-armed bandits.”
I will note here that three of the other four prosecution witnesses I saw testify, Larry Tuttle Sr., McDonald’s stepfather’s cousin; Rappawan Vice-President William Vaught Jr.; and McDonald’s aunt, Campbell Realty broker Jeanette Campbell, testified as to their knowledge or lack thereof, and participation in real estate transactions, particularly one on Buck Mountain Road (see more below), related to the alleged misdirection of EDA assets to the defendant’s personal use or benefit. I hope to recount more of that testimony, as time and unfolding trial events allow, in a future story.
State Police interview into evidence
Following a lunch break, VSP Investigator Brad Gregor was called to the stand to comment on a two-hour videotaped interview he did with McDonald on December 19, 2018, the day before she resigned by email as the EDA Board of Directors met in Closed/Executive Session to discuss her future with the EDA. That video was introduced as Prosecution Exhibit 531-A, with its transcript introduced as Exhibit 532 (that is a lot of exhibits, and who knows how many pages each exhibit may be). During Gregor’s testimony, amidst the prosecution’s playing of the video of the interview, it was noted that McDonald had requested a meeting with the State Police in response to some allegations about her financial activities being circulated through social media and elsewhere. Kristie Atwood’s name was mentioned during Gregor’s testimony.
The FBI and VSP, in April 2019, during a search for potential evidence of criminal wrongdoing at the EDA Kendrick Ln. office, including Jennifer McDonald’s former office, which had been sealed off as a potential crime scene with her seized and locked down work computer since her Dec. 20, 2018, resignation under investigative pressure.
What McDonald didn’t know at the time was that in response to that same information being in the public domain, as well as Virginia State Police hands, VSP had launched an investigation into her financial affairs. And it was Gregor, a white-collar crime expert of 10 years with VSP after retiring from 29 years with the FBI, who was assigned to head that VSP investigation. Particularly through opening portions of the interview, one can see Gregor leading McDonald into explanations of her financial role and authority at the EDA versus her targeted discussion of why she thought she was being scapegoated by her board and others for what she asserted were group decisions on financial transactions that suddenly her board of directors had “forgotten” they had authorized.
The issue of two EDA signatures, including a board representative’s along with hers, being required procedurally by the EDA on financial transactions was referenced by McDonald in the video interview with Gregor. That dual signature defense claim has led to prosecutorial counterclaims of forged signatures, including during early hearings when the case was still at the state level. The federal indictment on aggravated identity theft would indicate that it would be re-raised at this trial in at least one situation, believed to be a claim by ITFederal principal Truc “Curt” Tran regarding his signature appearing in one of McDonald’s real estate transactions. I believe it likely that would be the one involving all three witnesses heard earlier on September 13, Larry Tuttle Sr., Rappawan Vice-President William Vaught Jr., and Jeanette Campbell, regarding the Buck Mountain Road property bought and sold within about a month at a $600,000 loss.
That EDA board closed session scheduled for December 20, 2018, the day after the Gregor-McDonald interview, was called in the wake of increasing municipal and EDA scrutiny through 2018 about some of McDonald’s financial activities, including those personal real estate transactions involving the cash she claimed to have won through her Hollywood Casino slot machine activities. It was anticipated that her board would terminate her out of that Executive Session. In fact, McDonald told Gregor during that videotaped interview that she anticipated losing her job the next day due at least in part to then Warren County Administrator Doug Stanley turning her EDA board against her in retaliation for what she claimed was sexual harassment she was enduring from Stanley and another member or two of the community at the time. Stanley was one of the prosecution’s first witnesses in this trial, and his cross-examination reportedly one of the most, if not the most, explosive points of the trial. And darn, I missed it because I was on the far side of the prosecution’s witness list.
The EDA financial scandal has led to multiple civil court cases, with a string of liability convictions, appeals of some of those liability jury findings, and out-of-court settlements surrounding the estimated $ 26 million dollars alleged to have been moved illegally by McDonald and alleged co-conspirators to her and their personal benefit. McDonald herself settled out of civil court with the EDA, sending an estimated $9 million of real estate assets to the EDA under a “no-fault” settlement agreement in which she admitted no wrongdoing in acquiring those assets.
See Royal Examiner’s “EDA in FOCUS” NEWS section archives dating to the Examiner’s founding year of 2016 for further details – and a chronology of events.
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