McDonald Sentencing Will Proceed as Scheduled Following Denial of Defense Motion for New Trial

On Tuesday, January 23, Federal Court Judge Elizabeth K. Dillon issued a written opinion denying former Front Royal-Warren County Economic Development Authority (EDA, FR-WC EDA) Executive Director Jennifer McDonald’s defense motions seeking a new trial on criminal counts related to the EDA “financial scandal” circa 2014 to 2018. McDonald’s defense team of federal court-appointed attorneys were seeking a new trial based in part on the exclusion from evidence at trial of a grand jury witness identified as “J.W.’s” testimony to the grand jury. The judge also gave a mixed ruling on defense motions related to acquittal on specific charges McDonald faced, granting acquittal on four counts of bank fraud regarding transactions with United Bank. That leaves McDonald facing sentencing on 30 criminal convictions of the 34 the jury found her guilty of on November 1, 2023. Consequently, McDonald’s sentencing will proceed as scheduled at 10 a.m. on Monday, February 12, in the U.S. Western District of Virginia federal courthouse in Harrisonburg.

“For the reasons discussed below, the court will deny McDonald’s motion for new trial and will deny in part and grant in part her motion for judgment of acquittal,” Judge Dillon wrote, explaining, “Specifically, the court will deny the motion for acquittal as to the aggravated identity theft in Count 18 and will grant the motion as to the bank fraud counts in Counts 14 through 17. Consistent with Federal Rule of Criminal Procedure 29(d), the court also considers whether to conditionally grant a new trial in the event that its judgment of acquittal is reversed on appeal, and concludes that a new trial would not be necessary. Thus, the court declines to conditionally grant a new trial as to Counts 14 through 17.”

Jennifer McDonald’s sentencing on 30 of 34 criminal count jury convictions related to the EDA “financial scandal” will proceed as scheduled in the Harrisonburg federal courthouse on Feb. 12. McDonald has been free for the bulk of time since initially being charged criminally in the spring of 2019. How much time she will be sentenced to on her upheld convictions will be in the hands of federal Judge Elizabeth K. Dillon. Royal Examiner File photos

The excluded grand jury testimony involved a “Settlement Agreement,” which the defense claimed was authorized by then EDA Chairman Patricia Wines, now deceased, to compensate McDonald financially in the amount she was accused of misdirecting to her personal use, about $6.5 million in EDA assets. That alleged agreement, the defense contended, was compensation for alleged sexual harassment McDonald claimed against some male public officials she dealt with in her job as EDA executive director. However, former EDA board members, including Ron Llewellyn, testified they had never heard of such an agreement, which procedurally testimony at trial indicated the full board would have had to authorize.

J.W.’s grand jury testimony

On the issue of “J.W.’s” excluded grand jury testimony, Judge Dillon wrote: “The issue of whether to admit the prior grand jury testimony of J.W. into evidence was argued at trial, and the court issued a written ruling excluding the evidence.*1  Having reviewed its prior ruling (Dkt. No. 199), the court continues to believe it was correct and, regardless, the court does not find that the ‘interest of justice … requires’ a new trial based on the exclusion of this evidence.

“On this issue, McDonald argues first that, even if otherwise inadmissible, the United States opened the door to J.W.’s grand jury testimony by eliciting testimony about from where the purported settlement agreement came and whether an EDA board member had sent it to ‘J.W.’

“In response, the United States correctly notes that it was defendant’s counsel who first elicited any testimony concerning where McDonald’s prior attorney obtained a copy of the purported settlement agreement as well as first identifying the name J.W. Thus, it was the defendant who first elicited testimony that the agreement came from J.W. and the defendant who first elicited any testimony about the identity of J.W. (See 9/14/23 Tr. 181–82, Dkt. No. 230.) As such, the court agrees with the United States that the government did not ‘open the door’ so as to allow the otherwise inadmissible evidence.”

Jennifer McDonald, upper left of table, on the job circa 2016-17 with the EDA Board of Directors, including then Chairman Patty Wines at head of table, as then County Administrator Doug Stanley, standing, gives an update on County business.

As noted above, Judge Dillon concluded: For the foregoing reasons, the court will deny in part and grant in part McDonald’s motion for judgment of acquittal and will deny her motion for new trial. An appropriate order will be entered. (Entered: January 23, 2024).”

See Judge Dillon’s full 21-plus page written ruling here.

Royal Examiner’s coverage of McDonald’s trial and conviction may be accessed under “Crime & Courts” and “EDA in Focus.”