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McDonald bankruptcy filing removes her from EDA civil suit – July 2022 dates set for remaining civil defendants’ trial

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The Front Royal-Warren County Economic Development Authority civil litigation now seeking about $26 million in asset recovery against 24 defendants including its former executive director was dealt a harsh blow the day before scheduled motions hearings Friday morning, September 25. That blow was a notice of former EDA Executive Director Jennifer McDonald’s Chapter 7 bankruptcy filing Thursday afternoon, September 24.

As noted in the filing and as discussed in Warren County Circuit Courtroom “A” Friday, the bankruptcy filing essentially removes McDonald from the civil litigation process. McDonald’s bankruptcy filing included one of her two real estate companies, MoveOn8 LLC.

“As a result of the institution of the bankruptcy proceeding, all actions to collect a debt from Jennifer McDonald, or to recover property from the bankruptcy estate of Jennifer McDonald, have been stayed by reason of the applicability of Section 362(a) of the United States Bankruptcy Code (11 U.S.C. 362(A)),” McDonald attorney Peter Greenspun wrote in the filing received in the Warren County Circuit Court Clerk’s Office Thursday afternoon. The same holds true as to a stay on asset recovery in the MoveOn8 LLC filing.

Jennifer McDonald’s Thursday bankruptcy filing has essentially STOPPED her involvement in the $26-million EDA civil litigation swirling around her alleged embezzlements. Royal Examiner Photos by Roger Bianchini



With EDA lead attorney Cullen Seltzer acknowledging the stay on civil action against McDonald involving her now bankruptcy-trustee seized assets, a scheduled 9 a.m. motions hearing seeking financial sanctions against her for attempting to move a piece of property frozen by the court near the outset of the April 2019 EDA civil litigation filing was removed from the docket. Judge Bruce D. Albertson adjourned the 9 a.m. proceedings 10 minutes after they began.

Motions hearings on the remaining defendants’ cases commenced shortly after 10 a.m. as scheduled. Two defense attorneys connected by remote audio hookup told the court they were likely to file similar “interlocutory appeals” motions to the one April Petty and Jesse Poe attorney William Shmidheiser informed the court in person he would be filing. Those petitions will seek to have defendants removed from the single “mass trial” the plaintiff is seeking in alleging a wide-ranging conspiracy of McDonald and associates to profit from the alleged McDonald-directed embezzlements and misdirection of EDA assets.

Before making his case that his clients should be removed from the single trial of all defendants, as the 10 a.m. hearing began Shmidheiser called McDonald’s bankruptcy “the elephant in the room” that should be discussed with all involved defense attorneys linked in. That led EDA attorney Seltzer to repeat his acknowledgment that the case against primary defendant McDonald was stayed from further action due to the bankruptcy process.

Several times during subsequent discussion McDonald was referred to as “the hub” of the conspiracy “wheel” the plaintiff is alleging existed between the former EDA executive director and those believed to have benefitted financially one way or another from her alleged misdirection and embezzlement of EDA assets.

While criminal charges related to the EDA civil suit have been dropped against McDonald and others due to speedy trial statute concerns, the threat of refiling remains, leading to possible invocation of 5th Amendment rights if called to testify or be deposed in other defendants’ cases.

Former EDA and McDonald Administrative Assistant Michelle Henry’s attorney John Cook told the court the McDonald bankruptcy filing made his client’s case problematic, in that Henry has filed to force McDonald to pay for her legal fees in the civil case.

Also on the table Friday was McDonald’s ability or willingness to testify as a witness as the civil cases proceed in the wake of her bankruptcy filing. That she could be deposed as a witness in other cases seemed agreed upon. But whether she would quickly choose to invoke her 5th Amendment right not to self-incriminate, with the refiling of criminal charges also still a possibility, remained at issue.

Judge Albertson took defense counsel concerns about the bankruptcy filing’s impact on the other defendant’s cases under advisement, observing, “I think we can proceed with (setting) dates in the event I rule the stay is not warranted.”

EDA attorney Seltzer noted the large number of witnesses to be deposed, over 50 he acknowledged; as well as the limited days per month, three, available for those depositions, depositions he predicted would at a minimum take a full day due to the number of defendants and their counsel involved. Due to those factors, coupled with lingering pandemic limitations on court processes, Seltzer raised an eyebrow or two predicting the civil trial wouldn’t happen before July of 2022.

That prediction led to an added sense of urgency by Petty and Jesse Poe’s attorney. Responding to a question, Shmidheiser told the court he probably would file his interlocutory appeal by the end of the week, as he sought a November date for a hearing on the appeal. Judge Albertson set November 23, at 3:30 p.m., for what is anticipated to be a 30 to 40 minute or so hearing.

Shmidheiser also told Judge Albertson that one of his primary hopes for the day’s hearing was that specific dates would be set for the lengthy deposition process of witnesses, as opposed to the vague “three days a month” tag currently on the table. Agreeing that pinning down dates for depositions was a preferred course of action, Albertson set about finding dates all attorneys could be available for.

Due to varying attorney’s schedules, preferences and other court variables, Tuesdays-Wednesdays-and-Thursdays were set between January and May 2021 to get the deposition ball rolling. Deposition dates agreed to were January 13-14-15; February 16-17-18; March 30, 31, April 1; and May 11-12-13.

Acknowledging the process would likely continue through the remainder of the year, Albertson set a pre-trial motions date of February 19, with a 24-day trial scheduled 4-1/2 months later from July 5 to 29, 2022.

Some of us may need an ambulance to get to the EDA civil trial now scheduled for 24 days in July of 2022.

Seltzer did acknowledge it was possible some defendants’ motions to be removed to individual trials could be successful, leading to earlier trials for those defendants.

As for the bankruptcy situation, one attorney present familiar with bankruptcy cases, later explained to the media that the EDA could file to have certain McDonald assets separated from the bankruptcy sale process to accommodate creditors, citing her alleged embezzlements. However, without a conviction in support of those allegations that filing might be hard to get approved by a bankruptcy trustee, Shmidheiser said. He added that the bankruptcy transfers McDonald’s liability from the EDA civil case now in Warren County Circuit Court to a judge-overseen trial in a Harrisonburg U.S. Western District of Virginia Bankruptcy Court.

According to the McDonald Bankruptcy Docket posted by the U.S. Western District of Virginia Court:

The First Meeting of Creditors is scheduled for 9 a.m. on Friday, November 13, 2020 (by telephone);

Deadline for filing Proofs of Claims has not yet been set, because McDonald filed her case as a “No Asset Case”;

Deadline for filing Complaints for Exception to Bankruptcy Discharge is Tuesday, January 12, 2021. The Warren EDA will have to file a Complaint for Exception to Discharge case by the deadline, or its claim will be discharged in bankruptcy, we were told;

McDonald ‘s Bankruptcy Schedules are due to be filed by October 8, 2020 – but if time extensions are requested, they are generally liberally granted.

The Trustee is listed as Bob Stevens of Charlottesville, along with the Office of the U.S. Trustee, with a Roanoke address.

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EDA in Focus

Warren County EDA reaches bank agreement on McDonald parcel, moves C-CAP rental forward among other actions in final meeting of 2021

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The Board of Directors of the Front Royal and Warren County Economic Development Authority (EDA) held the combined November and December meeting via Zoom. All Board members attended the meeting.

The Board adopted two resolutions. One resolution to approve C-CAP using Suite C located at the EDA office building to store food for distribution. The use of Suite C is at no cost to the organization while it transitions to a lease in Suite B and C-CAP will provide evidence of an insurance policy to cover the use of Suite C. The EDA and C-CAP will negotiate the terms of a lease on Suite B and possibly Suite C at the Kendrick office location at an agreed rental rate.

The second resolution authorizes the EDA Chair and Treasurer to finalize details of an agreement with Atlantic Union Bank where it gives up its claim in the Jennifer McDonald bankruptcy and the EDA will release its claim on the property formerly owned by “Little Rugratz” on Virginia Avenue. The existing bank loan is more than the value of the property and the release of the EDA claim allows the bank to sell the property. In return, by the bank releasing its claim in the bankruptcy, the EDA can recover a higher percentage of the recovery from the McDonald bankruptcy and save money in attorneys’ fees.

The Board is working with Public Works to address the maintenance issues at the Kendrick Lane building including HVAC repairs and installation of water shut-off valves.


The EDA and County are working on soliciting bids for appraising all the EDA properties. The first priority is the Baugh Drive building.

Chair Jeff Browne updated the board on Nature’s Touch and the VDOT grant. Scott Jenkins stated all the marketing material for the Commonwealth is updated and was approved by VEDP (Virginia Economic Development Partnership).

Greg Harold presented the final draft of three Standard Operating Procedures (SOP) that will be used as guides for EDA and prospective purchasers of EDA property. He stated the documents were not “static”, but are “living” documents that will be modified as needed. The three SOPs approved are Letters of Intent, Contract Management, and Property Disposition Due Diligence. The documents will be posted on the website by December 15.

The EDA and Warren County are working on a Memorandum of Understanding (MOU) to govern the transition of EDA’s staff moving to the County payroll and EDA’s role in future economic development in the county. One change beginning immediately is the County will permanently take over receiving and coding EDA bills prior to the EDA Chair and Treasurer approving the expenses.

The EDA Board approved the meeting schedule for 2022 and future meetings will be in person. The next EDA meeting will be on Friday, January 14th at 9 a.m. The location will be posted on the website as well as the remaining dates for 2022.

(From an EDA Press Release of December 5th)

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Crime/Court

Little civil consequence of more criminal prosecution delays in EDA case

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Contacted about the new dates in late 2022 of trials in the now federal prosecutor-handled criminal indictments against former Front Royal-Warren County Economic Development Authority (EDA) Executive Director Jennifer McDonald, current EDA Board of Directors Chairman Jeff Browne said while it has little, if any, impact on the EDA’s civil litigation seeking recovery of assets, he understands public frustration from continued delays on the criminal side of the EDA financial scandal.

“I don’t believe the delay in the criminal case impacts our civil case. We have no control over the criminal case, but it is frustrating that Warren County residents must wait so long for justice to be served. I understand the reasons for the delay, but it still is frustrating,” Browne told Royal Examiner.

The reason for the delay continues to be, as it has been from the outset for the most part, the volume of evidentiary documentation in the case, as well as the introduction of new attorneys into the legal equation who must absorb the information in that documentation estimated at well over a million pages.

File photo of Jennifer McDonald booked in August 2019 during state criminal prosecution process. That was her second arrest related to the local/state criminal investigation of EDA finances during her executive director leadership of the EDA. Royal Examiner File Photos


Most recently, federal Judge Elizabeth Dillon granted McDonald’s newest attorney, court-appointed Andrea Harris’s request for a continuance of McDonald’s criminal trials slated for the first week of this month. The federal prosecutor from the Western District of Virginia did not object to the continuance. Consequently, new trial dates between October 11 and November 18, 2022, are now on federal docket. Since the delay came at the request of the defense, speedy trial guidelines will not come into play.

As Royal Examiner previously reported, on August 31 McDonald was re-arrested on a 34-count indictment handed down by the Western District of Virginia Federal Prosecutor’s Office in Harrisonburg.

On April 16, 2019, FBI and Va. State Police jointly seized material from EDA offices, including the former executive director’s office computer which had been locked down from outside access since Dec. 20, 2018.

Of those 34 counts, 16 were for money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” – our best guess representing ITFederal principal Truc “Curt” Tran. The 40-paragraph True Bill elaborating on the charges to a Harrisonburg Grand Jury is dated August 25, and signed by then-Acting U.S. Attorney Daniel P. Bubar. McDonald was once again released on bond.

Dan Whitten, left, Greg Drescher, back to camera, former county attorney and EDA Board chairman respectively, as well as Tim Grant, seated at computer, lock down McDonald’s office and computer as a potential crime scene in the wake of her Dec. 20, 2018, emailed resignation in the wake of mounting closed session scrutiny by her board. Below, the same office following the April 16, 2019, FBI-led seizure of materials from the EDA offices.

The charges and outline of the case in support of them echo earlier criminal indictments filed at the state level before the State Special Prosecutor’s Office in Harrisonburg turned the case over to federal authorities in late 2019. The state special prosecutor had dropped the indictments it had filed to avoid speedy trial issues due to the volume of evidentiary material – estimated at 800,000 to over a million pages at the time. Failure to meet speedy trial deadlines could have led to defense motions for dismissal of charges on the criminal side of the EDA financial scandal case.

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EDA in Focus

EDA emerges from lengthy Closed Session to consider assistance to Angel Tree Program and C-CAP winter food storage

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(Editor’s note: The Salvation Army notified Royal Examiner that their holiday toy collection/distribution program is known as Angel Tree, as opposed to the Marine Corps Toys for Tots effort. We in turn notified the EDA Board Chairman and received permission to make the correction to this press release.)

The EDA Board of Directors met today for their regular monthly meeting. All board members were present along with legal counsel. The Board went into closed session for approximately two and half hours to discuss transition, personnel, loan restructure, and disposition of property. The Board returned to open session at approximately 11:30.

The Board discussed the transition and how the county and the EDA were working well together. Taryn Logan, Assistant County Administrator, is also the Interim EDA Executive Director working on new prospects and marketing of EDA property. Ed Daley, County Administrator will work with the EDA on current projects. The County and EDA are actively recruiting a new Executive Director and administrative assistant. Jeff Browne thanked board members for stepping up to keep the EDA operation running smoothly.

Jeff Browne discussed the use of a portion the EDA administrative building through December 22nd for the Salvation Army Angel Tree holiday toy collection and distribution campaign. The EDA will also assist C-CAP in finding proper storage for needed food through the winter.


Jeff Browne and Scott Jenkins discussed the use of interns beginning in January to assist with EDA research and future projects. Scott Jenkins reviewed the “job description”. Taryn Logan stated the use of interns by the county has been a very successful venture in the past. Ed Daley, County Administrator, also supported the proposed program.

Marjorie Martin (Jorie) will assume the duties to update the website working with Queen Consulting. Meeting dates, and updated site information will posted.

The Board is working with vendors to clean the air conditioning ducts in the EDA administration building.

Next EDA Board Meeting: Combined meeting for November and December, December 3, 2021: The meeting will be held via zoom at 9:00 AM

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EDA in Focus

County Supervisors change November meeting date – stay mum on Closed Session EDA litigation discussion

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The only open session action taking by the Warren County Board of Supervisors at a Special Meeting of Tuesday, October 26, was authorization to change the date of a November Supervisors meeting from the 16th to the 18th. That item was a late addition to the agenda made and acted on prior to a scheduled closed session.

The bulk of the 5 p.m. meeting, about an hour-and-a-quarter, was taken up by a Closed/Executive Session to discuss Economic Development Authority litigation. As Royal Examiner readers know, that is an oft-behind closed doors topic over the last two-plus years in the wake of the $26-million to $62 million FR-WC EDA financial scandal that began unravelling in mid-2018. No announcement or action regarding that litigation was offered during the brief open session to adjournment shortly after 6:20 p.m.

As has been previously reported, the EDA financial scandal involves civil and criminal cases, the latter now handled at the federal level by the U.S. Attorney’s Office in the Western District of Virginia headquartered in Harrisonburg. Before criminal indictments were dropped by the Special Prosecutor at the state level due to speedy trial concerns surrounding the mountain of documented evidence, estimated at over a million pages, there were as many as 23 co-defendants alleged as co-conspirators of former EDA Executive Director Jennifer McDonald. The federal prosecutor launched action on August 31, filing a 34-count indictment against McDonald, including 16 counts of money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” (ITFederal principal Truc Tran perhaps?)

In related civil litigation, McDonald and the EDA reached an agreement in which $9-million-dollars of assets were ruled out of McDonald’s bankruptcy court filing as owed to the EDA, though without any admission of fault by McDonald. As part of that agreement the EDA recently announced assumption of ownership of McDonald Real Estate LLC MoveOn8’s undeveloped 41-acre Happy Creek parcel valued at over a million dollars.


The EDA and Town of Front Royal are also engaged in dueling civil countersuits initiated by the Town, claiming disputed lost assets related to the financial scandal. During the tenure of Interim Town Manager Matt Tederick, other than then-Mayor Eugene Tewalt, the town council chose to ignore EDA offers to sit down in a non-litigious, good faith effort to determine exactly what was owed to the Town related to the alleged misdirected EDA assets involved in Town and County capital improvement and economic development projects financed through the EDA. The Town has since initiated an effort to create its own unilateral Front Royal EDA (FREDA) operating independently of the over half-century-old Town-County EDA, which technically the Town is still a legal, if now silent, partner in.

That independent EDA effort has become a political hot potato in the coming Town Special Election to fill resigned member Jacob Meza’s seat. In recent years the County had fully funded EDA operational costs, with each municipality covering its own debt service related to EDA financing of projects. Independent conservative council candidate Bruce Rappaport has made the unilateral Front Royal EDA a major target of his campaign, citing it as a waste of town taxpayer money and destructive wrench in the cog of Town-County relations.

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‘Ghosts of EDA Loans Past’ come back to haunt county supervisors

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The most interesting part of Tuesday evening’s Warren County Board of Supervisors meeting was likely behind closed doors after the board adjourned to Closed/Executive Session for a legal-based answer to North River Supervisor Delores Oates question as to what benefit to the County and its taxpayers there was in approval of a Resolution admitting a “moral obligation” to continue to pay the debt service on bank loans made by the EDA during its developing financial scandal, circa 2016 or so. There was one of three loans at issue of particular interest – the $10-million-dollar loan to Truc “Curt” Tran’s ITFederal company poised to jumpstart commercial redevelopment at the 149-acre portion of the former Avtex Superfund site known as the Royal Phoenix Business Park.

North River Supervisor Delores Oates particularly wondered why it remains in the County’s interest to continue covering debt service on the Town/EDA-sponsored ITFederal loan. Anxious to see commercial redevelopment begin on a portion of the former Avtex Superfund site in town, the Front Royal Town Council made a one-month, which grew to three-months, ‘bridge loan’ of $10-million to the ITFederal project to illustrate Town support of that project to a skeptical bank targeted to finance the project. Below, five-plus years later an unoccupied, un-permitted building constructed at an estimated cost of $2 million or less memorializes the entire debacle. Further below, I guess the building looks kind of like what ITFederal presented back in 2016 – at least the first floor. Royal Examiner Photos by Roger Bianchini

Of particular interest, because the “moral obligation” for that loan was initially believed covered by the Town of Front Royal, whose elected officials agreed to provide a $10-million-dollar “bridge loan” requested by then EDA Executive Director Jennifer McDonald to indicate to First Bank and Trust that “the community” stood behind the loan and proposed project it supported. That request for and Town show of financial support for the ITFed project came despite the fact the company showed virtually no assets other than the three acres at the Royal Phoenix/Avtex site valued at slightly over $2-million-dollars that was “gifted” to the company by the EDA behind closed doors for one dollar.

A clue to what the county supervisors heard over about 15 minutes in Closed Session may have been offered by the board’s action out of it. After some hesitancy in response to the Chair’s call for a motion on the Resolution, Oates’ motion for approval of the “EDA First Bank and Trust Support Agreement”, seconded by Walt Mabe, passed by a unanimous roll call vote. The vote commits the County to continue to absorb those “moral obligation” payments through the Fiscal Year 2021-22 at an estimated cost of $214,000.


In open session, responding to questions about the Resolution in support of the “EDA First Bank and Trust Support Agreement”, County Administrator Ed Daley mentioned consolidation of three loans, including the above-mentioned ITFederal loan (at $9,551,500), as well as a First Bank and Trust Line of Credit ($8,691,600), and a First Bank of Strasburg loan ($3,450,000). Contacted later, Daley cited one condition that would bring the EDA’s payments to the bank on the ITFederal loan in line with what ITFederal pays the EDA monthly at about $42,000. Before the EDA payments fluctuated to more or less than the ITFed payments, sometimes as much as $7,000 a month more.

After County Administrator Ed Daley, left, summarized the proposed ‘First Bank and Trust Support Agreement’ and Supervisor Oates asked ‘Why?’ the County should continue to assume moral obligation payments it may not be responsible for, Interim County Attorney Jason Ham, right, suggested a Closed Session might be most appropriate to answer that question.

Despite the commitment to an estimated $214,000 in payments through this fiscal year, the board’s unanimous vote in support of its moral obligation payments likely reflects negative consequences were the County to bail on covering an EDA debt mid-fiscal year. But again, the agreement is only to the end of the current fiscal year, June 30, 2022. What might the future of “moral obligations” related to the “Ghost of EDA Loans Past” bring in FY-2022-23? – Stay tuned for another seasonal episode of “A Front Royal-Warren County EDA Carol”.

Thermal Shelter bathrooms

County Administrator Daley was also prominent in responding to another matter raised by three speakers during Public Comments about things, not on the meeting agenda. That was the elimination of two bathrooms in the Health and Human Services Complex at the old 15th Street middle school utilized by the County and involved churches and civic organizations to house the community’s homeless indoors at night during the winter. Opening that discussion was First Baptist Church Pastor Christy McMillin-Goodwin, followed by Aneita Bryant and Jim Bunce.

First Baptist Church Pastor Christy McMillin-Goodwin opened Public Comments discussion of how communications broke down between involved Thermal Shelter parties on the removal and delayed replacement of indoor bathrooms nearest the winter homeless shelter.

That trio said an alternate plan for mobile outdoor restrooms was unadvisable due to security and additional personnel to monitor out-of-building night trips, as well as potential severe weather issues. Noting a replacement plan that would not have new indoor facilities in place in time for this winter’s thermal shelter setup, these speakers wondered how the removal plan had been initiated without notice to those involved in helping the County operate the thermal shelter. Bryant suggested allowing access to the next closest indoor facilities.

In responding, Daley said he had been at point for the County in initiating the bathroom removal due to failing pipes that caused toilet backup issues. He said he had envisioned a much quicker turnaround in replacing the removed indoor facilities in that section of the building than ended up being the case. He promised to work proactively with those involved to see that an adequate alternate overnight option was available when the thermal shelter opens as winter arrives.

Public Hearings

Also Tuesday following public hearings, the board unanimously approved three Conditional Use Permit applications, two for short-term tourist rentals and one for a private use campground. Following application summaries by Planning Department Deputy Director Matt Wendling the first two CUP applications, Charles and Lou Ann Dotson’s for the Private Use Campground on their property on Burma Road in the Man-Da-Lay Subdivision; and Jacob W. Lott Jr. and Sandra J. Kiepfer for a short-term tourist rental on their 1.6-acre lot on Little Indian Road in the Blue Mountain Subdivision in Linden went to a vote with no public hearing speakers. Wendling did note that a letter from the chairman of the Blue Mountain Property Owners Association had been received, expressing “no problem” with Lott and Kiepfer’s short-term tourist rental application.

Up last were Nicole and Sean McMinn with a short-term tourist rental permit application for their 2.42-acre property on Sagar Drive in the Highland Estates Subdivision in the Fork District. Again, there were no public speakers after the applicants responded to the board chair’s offer to summarize their request. The D.C.-based couple told the board they had run into little opposition from neighbors, and what opposition there had been from neighbors was not from those closest, but with property over a thousand feet from theirs.

Nicole McMinn and her husband Sean marshaled neighbor and tourism-related business support for their short-term tourist rental permit application.

And while there were no public speakers, the McMinns noted a number of letters to the board from supporters of their short-term tourist rental CUP application, which they asked to be read into the meeting record. Board Clerk Emily Ciarrocchi then read nine letters of support, including one with “25 to 30” signatures. Several of the letters, including one from the owner of the Downriver Canoe Company, noted positive impacts on tourism-related businesses from short-term renters. One letter noted, “They come; they spend; they leave”.

The board then made its final unanimous vote of approval on a motion by Archie Fox in whose district the applicant’s property lies, seconded by Walt Mabe.

Following that vote, Happy Creek Supervisor Tony Carter noted a “Bless you” included in one of the letters read by the clerk that was well-timed to a sneeze by someone present in the government center meeting room.

Approaching an election he chose not to be a part of two days after Halloween this year, Tony Carter was on a comic roll Tuesday evening suggesting politician as perhaps the scariest costume for the Oct. 31 to Nov. 2 window.

In fact, facing a future out of the public eye politically – Carter did not file to be on the ballot for reelection to his Happy Creek seat in November – Carter appeared at times Tuesday to be auditioning for Comedy Club spots during his member report and at various other times during the meeting. In fact, his coming local election, Halloween costume advice during his member report led three of his four colleagues to decline to try and “follow that act”.

See all the fun, business, and other public perspectives, including opening Public Comments speaker Michael Williams question as to whether a recent church-sponsored candidates forum in which the moderator was shown prior to the forum to have contributed to one church-associated candidate’s campaign could threaten that church’s tax-exempt status on U.S. Constitutional separation of church and state guidelines, in the County video:

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EDA in Focus

EDA gets McDonald company property as part of settlement agreement

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On Wednesday, October 20, Warren County Economic Development Authority Board of Directors Chairman Jeff Browne verified the EDA’s acquisition of the 41-acre “Happy Creek Road” parcel owned by former EDA Executive Director Jennifer McDonald’s Moveon8 real estate LLC. Acquisition of the undeveloped property assessed at just over a million dollars according to county court records is part of the $9-million-dollar no-fault settlement agreement reached between the EDA, McDonald, and the Harrisonburg Bankruptcy Court handling McDonald’s 2020 bankruptcy filing. The EDA will now be able to market the property as a developable EDA asset. It is located near the intersection of Happy Creek Road and Leach Run Parkway.

Browne said that in addition to receiving full value on the Happy Creek parcel, the EDA was in line to receive a percentage of the sale price of other McDonald assets distributed through the bankruptcy court proceeding. Exactly how close those percentages might get the EDA to the $9-million-dollar settlement figure remains to be seen. It was not immediately clear as to whether the EDA will have an outright full value claim to any other McDonald-held properties or assets.

The FBI and VSP were both involved in the April 2019 search of McDonald’s former office; below, being locked down after her resignation under mounting investigatory pressure by her board on Dec. 20, 2018. Royal Examiner File Photos by Roger Bianchini

McDonald is the central figure in the EDA financial scandal that began unravelling in mid-to-late 2018. She resigned in December 2018 under mounting pressure from her board of directors. She has been accused in civil and criminal court of utilizing her EDA position to misdirect EDA assets to her and others personal benefit. Western District of Virginia federal authorities have taken over the criminal side of the EDA case after a state special prosecutor’s office in Harrisonburg dropped criminal charges against McDonald and as many as 23 co-defendants due to speedy trial concerns as it wrestled with the volume of evidentiary material – estimated at 800,000 to over a million pages at the time. With charges against some defendants originating with the county commonwealth attorney’s office that initially handled the criminal investigation during Brian Madden’s tenure heading the department, failure to meet speedy trial timelines could have led to defense motions for dismissal of criminal charges against the defendants.


Jennifer McDonald booked during state criminal prosecution process in 2019.

On August 31, 2021, federal prosecutors made their initial move, handing down a 34-count indictment against McDonald. Of those 34 counts, 16 were for money laundering, 10 for bank fraud, 7 for wire fraud, and 1 count of aggravated identity theft regarding someone identified as “T.T.” – ITFederal principal Truc Tran perhaps?

ITFederal principal Truc ‘Curt’ Tran on site at EDA parking lot, adjacent to his now floundering construction project, on Dec. 20, 2018, the day Jennifer McDonald resigned as executive director of EDA. Tran expressed distress at the potential of McDonald’s departure at the time. Could Tran, whose $10-million loan for the Royal Phoenix project was the largest single item listed in the initial EDA civil litigation, have now accused McDonald of ‘aggravated identity theft’ regarding EDA financial dealings with him and his company?

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GLORY BEA: A Shenandoah Christmas Story, by Rich Follett and Larry Dahlke, set in the 1930’s in the Shenandoah Valley and the Depression has hit the valley residents. This story is being presented by Selah[...]
7:30 pm Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Dec 10 @ 7:30 pm – 9:30 pm
Sweeter, Still… Holiday Concert @ Front Royal United Methodist Church
Friday, December 10, 2021 7:30pm Front Royal United Methodist Church 1 West Main Street | Front Royal, VA 22630 COVID-19 Guidelines: Masks are required for attendees Sunday, December 12, 2021 4:00pm Trinity Episcopal Church 9108[...]
Dec
11
Sat
2:00 pm Clara, Little Mouse, and the Gol... @ Skyline Middle School
Clara, Little Mouse, and the Gol... @ Skyline Middle School
Dec 11 @ 2:00 pm – 3:00 pm
Clara, Little Mouse, and the Golden Key @ Skyline Middle School
Dancing By His Grace Classical Ballet Ensemble presents Clara, Little Mouse, and the Golden Key, featuring selections from Tchaikovsky’s Nutcracker Ballet, at the Skyline Middle School in Front Royal, Virginia. Join us for our original[...]
7:00 pm Glory Bea: A Shenandoah Christma... @ LFCC's William H. McCoy Theatre
Glory Bea: A Shenandoah Christma... @ LFCC's William H. McCoy Theatre
Dec 11 @ 7:00 pm – 8:30 pm
Glory Bea: A Shenandoah Christmas Story @ LFCC's William H. McCoy Theatre
GLORY BEA: A Shenandoah Christmas Story, by Rich Follett and Larry Dahlke, set in the 1930’s in the Shenandoah Valley and the Depression has hit the valley residents. This story is being presented by Selah[...]
Dec
12
Sun
2:00 pm Clara, Little Mouse, and the Gol... @ Skyline Middle School
Clara, Little Mouse, and the Gol... @ Skyline Middle School
Dec 12 @ 2:00 pm – 3:00 pm
Clara, Little Mouse, and the Golden Key @ Skyline Middle School
Dancing By His Grace Classical Ballet Ensemble presents Clara, Little Mouse, and the Golden Key, featuring selections from Tchaikovsky’s Nutcracker Ballet, at the Skyline Middle School in Front Royal, Virginia. Join us for our original[...]
3:00 pm Glory Bea: A Shenandoah Christma... @ LFCC's William H. McCoy Theatre
Glory Bea: A Shenandoah Christma... @ LFCC's William H. McCoy Theatre
Dec 12 @ 3:00 pm – 4:30 pm
Glory Bea: A Shenandoah Christmas Story @ LFCC's William H. McCoy Theatre
GLORY BEA: A Shenandoah Christmas Story, by Rich Follett and Larry Dahlke, set in the 1930’s in the Shenandoah Valley and the Depression has hit the valley residents. This story is being presented by Selah[...]
3:00 pm Valley Chorale’s Christmas Concert @ Calvary Episcopal Church
Valley Chorale’s Christmas Concert @ Calvary Episcopal Church
Dec 12 @ 3:00 pm – 4:30 pm
Valley Chorale's Christmas Concert @ Calvary Episcopal Church
This year’s yuletide concert is titled THIS SHINING NIGHT.  Join us for a selection of seasonal songs — ranging in style from classical to spirituals to pop — sure to brighten your holiday and lift[...]
4:00 pm Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Dec 12 @ 4:00 pm – 6:00 pm
Sweeter, Still… Holiday Concert @ Trinity Episcopal Church
Sunday, December 12, 2021 4:00pm Trinity Episcopal Church 9108 John Mosby Hwy. | Upperville, VA 20184 COVID-19 Guidelines: Masks are required for attendees