Madden requests, Athey empanels special grand jury in EDA case

Things have gotten interesting around the Warren County Courthouse this week… Photo/Roger Bianchini

Following a tumultuous five-day period culminating with the Tuesday, March 26 filing of a nine-defendant, 199-point civil suit filed on behalf of the Front Royal-Warren County Economic Development Authority seeking recovery of over $17.6 million in misdirected or embezzled assets, Commonwealth Attorney Brian Madden has requested the empanelment of a Special Grand Jury related to the allegations in the EDA civil suit. See Related Story:

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In a March 27 press release announcing his request submitted to Circuit Court Judge Clifford L. Athey Jr. the previous day, Madden said that the requested special grand jury would, “assist with an ongoing investigation into possible criminal activity based on the actions of the former director of the Economic Development Authority (EDA).”

Of that ongoing investigation, Madden noted that, “Since August of last year we have been working with the Virginia State Police as they investigated suspicious financial activities. Yesterday’s lawsuit filed by the EDA’s attorneys raises issues that are not presently being addressed by the VSP.”

“In reviewing the bill of complaint most of the allegations arise from an outside investigation conducted at the EDA’s request. To date this office has not been able to review any report generated by the outside investigation,” Madden observed, concluding, “Considering the complex issues involved and the allegations against those not directly related to the EDA, we believe the best a venue for future investigation into possible criminal activity is with a Special Grand Jury.”

Last year Madden prosecuted the person at the center of the EDA civil lawsuit, former EDA Executive Director Jennifer McDonald, in a misdemeanor filing of a false police report case brought forward by the Virginia State Police after the Front Royal Police investigation into that situation was turned over to VSP. McDonald was acquitted in an October 31 trial – trick or treat – when General District Court Judge W. Dale Houff ruled the prosecution had not presented enough evidence related to motive (Norma Jean Shaw’s investigation of McDonald’s use of cash in her real estate business and Curt Tran’s involvement in the criminal justice academy) or corroboration (Marla Jones FRPD interview) for the trial to proceed to the defense case.  (but we won’t go there again, Brian – too much).

Judge Athey’s order states that the Special Grand Jury shall be empanelled effective April 1, 2019 and conclude on or before September 30, 2019, adding that “the Commonwealth’s Attorney’s office may commence its investigative activities immediately”.

In explaining his authorization of the special grand jury empanelment, Athey wrote, “A primary purpose for impaneling a Special Grand Jury is to provide a just and impartial forum for he investigation of potential criminal activity of a complex nature alleged to have been committed by any governmental authority, agency or official thereof.

“Since the allegations contained in the Civil Complaint filed in this Court by the Industrial Development Authority (IDA) alleges numerous and complex conspiracies between its Executive Director, public officials, and government agencies, the allegations are best investigated and criminal probable cause determined in the citizen-driven forum of a Special Grand Jury.”

… Not to mention around the EDA headquarters in the old American Viscose et al Admin building.

The special grand jury will be selected from a list of up to 200 persons to be supplied by Deputy Judy M. Ruby of the Warren County Sheriff’s Office.

Sheriff Daniel McEathron is one of the nine defendants listed in the EDA civil suit filing stemming from his partnership in McDonald’s private real estate business. McDonald is alleged to have misdirected EDA funds through her two real estate companies.

In the wake of the Tuesday civil case filing the sheriff issued a short press release asserting his innocence of involvement in any McDonald embezzlement or misappropriation of funds schemes alleged in the EDA civil filing.

“I am in shock of the allegations and want the public to know I have done nothing illegal, either personally or professionally,” McEathron said in his release, adding, “Those that know me know who I am and what I stand for and that I would never do anything to compromise my position. Keep my family and my office in your prayers as I work my way through this.”

McEathron recently announced that he would retire early, effective May 1. He previously announced he would not seek re-election this year for his term ending December 31, 2019.

The unfelt poke

Madden’s request and Athey’s March 27 signing off on the special grand jury came on the heels of a March 22 press release and March 25 letter from local attorney John Bell demanding such a special grand jury be empanelled. However queried on any impact from Bell’s communications in this regard, Madden noted that he was out of town between March 23 and 26 and had not seen Bell’s communiqués directed his way.

Madden noted the explosive nature of the March 26 civil filing on behalf of the EDA as adding multiple dimensions to the VSP case he has been involved in.

Bell, who officially announced this week he will run to succeed Madden, who will leave his office on September 1 to assume a judgeship appointment, had this to say about creation of the special grand jury to explore the grounds for potential criminal indictments related to the EDA civil action and allegations contained therein: “It is about time and past time.

“The information in the EDA lawsuit comes as no surprise to anyone who has been following the reporting on this issue for the past year. Now that our outgoing Commonwealth’s Attorney has finally done the right thing, the key will be providing experienced leadership and the right resources to the citizens making up the Special Grand Jury. The people of Warren County will be waiting to see if there is proper follow though to this promising, if late, start.”