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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

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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for July but was continued in the wake of a bankruptcy filing by North, which according to plaintiff counsel was later withdrawn.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.

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Culpeper man arrested after lengthy investigation by the Blue Ridge Narcotics and Gang Task Force

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The Blue Ridge Narcotics and Gang Task Force has concluded a lengthy investigation with the arrest of a Culpeper, VA, resident.

On Monday (November 28), Daniel Ruiz-Torres, 29, was arrested by the Blue Ridge Narcotics and Gang Task Force following a search warrant along the 200 block of Jenkins Avenue in the Town of Culpeper.

Daniel Ruiz-Torres

 

As a result of the operation, a small amount of cocaine was seized along with drug paraphernalia, packaging materials, scales, $8,844 in currency, and two vehicles. Ruiz-Torres was arrested and charged with one felony count of possession with intent to distribute schedule I/II drugs and one felony count of possession of a schedule I/II drug. Ruiz-Torres was transported to the Culpeper County Jail, where he was held without bond.


The Blue Ridge Narcotics and Gang Task Force (BRNGTF) is composed of law enforcement personnel from the Culpeper, Fauquier, Orange, Madison, and Rappahannock Sheriff’s Offices, Culpeper, Warrenton, Orange Police Departments, and the Virginia State Police Bureau of Criminal Investigation, Culpeper Field Office.

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Charlottesville man charged with solicitation of minors

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On Wednesday, November 9, 2022, Front Royal Police detectives initiated an investigation regarding the solicitation of minors in the Warren County/Front Royal area. Detectives started a proactive approach to apprehend individuals soliciting underage victims for sexual purposes.

An undercover operation ensued, and an adult male began soliciting one of our detectives, who he believed to be a female under the age of 15 years old, for photographs and sexually explicit material. The adult male suspect sent sexually explicit materials to the detective, who was posing in an undercover capacity as a juvenile. Some of the material sent by the offender was Child Sexual Abuse Material (CSAM). The initial conversation was unsolicited and started by the offender in this case.

During the investigation, a designated meeting place was arranged within the Town of Front Royal, and the male traveled and met the undercover detectives posing as a juvenile female for lascivious intent.

 

AVERY WOOD


Through the course of this investigation, police identified the suspect as 53-year-old Charlottesville, VA, resident Avery Wood. After meeting with the detectives, Wood was arrested on November 22, 2022, and transported to the Rappahannock Shenandoah Warren (RSW) Regional Jail. Wood went before the magistrate and was ordered to be held without bond. The court date for the listed offenses has been set for December 15, 2022, at 09:00 a.m. in Warren County Juvenile and Domestic Relations Court.

The Front Royal Police Department is an active member of the Northern Virginia/DC Metro (NOVA/DC) Internet Crimes Against Children (ICAC) Task Force, which is coordinated by the Virginia State Police. We request anyone with information regarding the solicitation or exploitation of a minor contact Front Royal Police Department. Anyone with further information regarding this case, please contact Detective M.R. Ramey at (540) 636-2208 or by email at mramey@frontroyalva.com.

The Front Royal Police Department would like to thank the Frederick and Warren County Sheriff’s Offices for their assistance with this investigation and the successful apprehension of this individual.

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Arizona man sentenced in southwest Virginia meth conspiracy

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A defendant in a drug distribution organization that trafficked methamphetamine from Texas and Indiana into Southwest Virginia was recently sentenced in federal court on drug conspiracy charges, United States Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares announced.

Pedro Loza III, 28, of Bullhead City, Arizona, was sentenced to 72 months in federal prison this week. He was previously convicted of one count of conspiring to possess with the intent to distribute and distribute 50 grams or more of methamphetamine and one count of possessing with the intent to distribute and distribute 5 grams or more of methamphetamine.

In all, five individuals were charged as being part of this drug trafficking conspiracy, four of whom have now been sentenced for their roles in the scheme. Paul Warren Rucker previously pleaded guilty and was sentenced to 120 months in federal prison in July 2022. Defendants Amber Lynn Tackett and Benjamin Alvis entered guilty pleas and are scheduled for sentencing in April 2023. The lead defendant, Alonso Cantu-Cantu, is scheduled for trial in March 2023.

This case arose from a series of indictments stemming from an ongoing methamphetamine trafficking conspiracy operating primarily in the Smyth County, Virginia area. In total, 26 defendants have been charged in connection with the investigation.


This investigation was led by the Drug Enforcement Administration’s Bristol, Virginia Office, with assistance from the Smyth County, Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation, including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County Virginia Sheriff’s Office, the

Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.

Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General assigned to the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.

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Investigation remains ongoing into shooting incident at UVA

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The criminal investigation remains ongoing into the tragic shootings that claimed the lives of three University of Virginia (UVA) students and injured two others on the evening of Nov. 13, 2022. Christopher D. Jones Jr., 22, of Petersburg, Va., had his first appearance in Albemarle County General District Court on Nov. 16, 2022 on three felony counts of 2nd degree murder, two felony counts of malicious wounding, and five felony counts of the use of a firearm in the commission of a felony. Jones is being held at the Charlottesville-Albemarle County Regional Jail without bond.

The investigation confirms that Jones had traveled with other UVA students on Sunday, Nov. 13, 2022, to Washington, D.C. to attend a theater performance at the Atlas Performing Arts Center. Following the play, the students and a professor ate dinner in the District. The professor and 22 students returned to Charlottesville in a chartered bus, arriving at UVA at approximately 10:15 p.m. that same day.

The chartered bus pulled to a stop at Culbreth Garage on The Grounds. As the students were getting up to exit the bus, Jones produced a weapon and began firing. As Jones exited the bus, he fired additional rounds and then fled the scene on foot. Jones left the area in his black Dodge Durango.

At approximately 11 a.m. on Nov. 14, 2022, Henrico County, Va. Police apprehended Jones without incident. The officer observed Jones’ SUV and initiated a traffic stop in the 5700 block of Edgelawn St. in the eastern area of the county.


Investigators are still actively piecing together Jones’ movements between the time he fled the shooting scene and was apprehended in Henrico County. At this stage of the investigation, state police is not in a position to comment on Jones’ motives behind the shootings.

Devin Chandler, 20, of Virginia Beach, Va., and D’Sean Perry, 22, of Miami, Fla., succumbed to their injuries at the scene. Lavel Davis Jr., 20, of Ridgeville, S.C., was transported to UVA Medical Center, where he later died from his injuries sustained in the shooting. Their remains were transported to the Office of the Medical Examiner for autopsy and examination.

A 19-year-old student from Baton Rouge, La. and a 19-year-old student from Houston, Texas were also shot. They both were transported to UVA Medical Center for treatment of life threatening and non-life threatening injuries, respectively.

During the course of the investigation, a handgun was recovered in relative proximity to the shooting scene. No firearms were recovered inside the bus. A search warrant, executed by investigators on Jones’ residence in Charlottesville, resulted in the recovery of a rifle and a handgun. All firearms have been turned over as evidence to the ATF for processing.

The investigation remains ongoing at this time with the assistance of the University of Virginia Police, Albemarle County Commonwealth’s Attorney, Albemarle County Police, Charlottesville Police, U.S. Attorney for the Western District of Virginia, Office of the Virginia Attorney General, ATF and FBI.

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Culpeper residents arrested after investigation by the Blue Ridge Narcotics and Gang Task Force

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The Blue Ridge Narcotics and Gang Task Force has concluded a lengthy investigation with the arrest of two Culpeper, VA residents.

On Tuesday (November 16), Jesse O. Williams, 60, and Jamie L. Cottoms, 31, were arrested by the Blue Ridge Narcotics and Gang Task Force without incident along the 1300 block of Orange Road in the Town of Culpeper. As a result of the arrests, 20 grams of cocaine was seized along with $1,144 in currency. Williams was charged with two felony counts of possession with intent to distribute schedule I/II drug. Cottoms was charged with one felony count of possession of a schedule I/II drug, and one felony count of possession with intent to distribute/sell schedule I/II drug.  Williams and Cottoms were transported to the Culpeper County Jail where they are being held without bond.

Jesse O. Williams – Photos Courtesy of Culpeper Sheriff’s Office

Jamie L. Cottoms


The Blue Ridge Narcotics and Gang Task Force (BRNGTF) is composed of law enforcement personnel from the Culpeper, Fauquier, Orange, Madison, and Rappahannock Sheriff’s Offices, Culpeper, Warrenton, Orange Police Departments, and the Virginia State Police Bureau of Criminal Investigation, Culpeper Field Office.

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Stephens City: Shots fired-barricaded subject call ends peacefully

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At approximately 5:05 pm, the Frederick County EOC received reports of a subject discharging a firearm within a residence on Westmoreland Drive in Stephens City. The house was occupied at the time, with all subjects able to leave the premises unharmed, leaving the suspect as the lone occupant.

Arriving deputies confirmed shots continued to be fired from within the dwelling at 400 Westmoreland Drive, and a perimeter was set up around the immediate area.

As neighboring homes were evacuated and streets shut down, additional resources were activated and deployed, including Crisis Negotiations, SWAT, and Emergency Medical Services. Members of the Virginia State Police, Warren County Sheriff’s Office, Middletown Police Dept., and Stephens City Police Dept. also responded to assist with the developing situation.

The suspect was identified by family members as 45-year-old Daren Eugene Sullivan, who was believed to be under the influence of alcohol and upset over a domestic matter. Over the next several hours, Sullivan would randomly fire off rounds inside the dwelling, with one of those instances appearing to be directed towards two deputies on the perimeter. Sullivan made several threats of self-harm and of a possible forced police shooting.


Members of the FCSO Crisis Negotiation Team continued to attempt to speak with Sullivan during those times when he would answer the phone and respond to them with little progress.

With shots still being fired randomly, albeit less frequently, and attempts to establish a dialogue with the suspect being unsuccessful, non-lethal gas was deployed along with a robotic camera device from the Virginia State Police and drones from FCSO.

After a final round of gas was utilized, images from the drones and robot led commanders to believe that the Sullivan may now be incapacitated.

At 10:19 pm, a SWAT entry team made their way into the house and located Sullivan lying on the floor and unresponsive to verbal commands.

Team members approached the suspect and were able to take him into custody without further incident bringing this situation to an end without any
loss of life. Sullivan was transported to the Winchester Medical Center for evaluation, and criminal charges are forthcoming pending consultation with
the Commonwealth’s Attorney’s Office.

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