On a day one civil co-defendant dies, McDonald denied criminal case bond

It was a grim Warren County Courthouse the afternoon of Tuesday, May 28 – Royal Examiner File Photos/Roger Bianchini

While no one at the Warren County Courthouse Tuesday afternoon would openly confirm the possible suicide of former Warren County Sheriff Daniel McEathron that morning, there was an oppressive pallor among both deputies on security duty and courthouse staff before and after the May 28 bond hearing of McEathron’s co-EDA civil litigation defendant Jennifer McDonald. It was a pallor that extended to the two media members present who came to know McEathron during varying portions of his 16-year term as sheriff of this community. Perhaps fortuitously it seemed McDonald was unaware of the McEathron situation rapidly spreading into public consciousness outside the courthouse through word of mouth and social media.

Four days after her May 24 arrest on four felony criminal charges related to allegedly embezzled and misappropriated Economic Development Authority resources, and two days after being transported from RSW Regional Jail to Warren Memorial Hospital Sunday morning for reported chest pain, former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald was in court on a bond hearing.

McDonald appeared in RSW Regional Jail orange inmate clothing. Appearing on her behalf was her recently retained high-profile, D.C. area criminal attorney Peter Greenspun. Assistant Commonwealth’s Attorney Bryan Layton appeared on behalf of the commonwealth.

Jennifer McDonald’s RSW mug shot following her May 24 arrest on four felony counts related to EDA civil litigation. Courtesy RSW Jail

In his first court appearance as McDonald’s criminal defense counsel, Greenspun recited McDonald’s lifelong ties to the community, family ties – her husband, mother and an aunt were all present in the courtroom for the hearing – and her 20-year connection to the EDA, which while he acknowledged as part of her current legal situation, added indicated a pattern of stability in her professional life and ties to the community. Greenspun also noted that in the wake of her departure from the EDA, McDonald was now working with Earth Right Energy, a local solar power installation company.

Her attorney said McDonald would be willing to give up her passport, which he said was at the home she shares with her husband. Greenspun told the court his client’s last trip overseas was a 2015 vacation with her husband to the Bahamas.

“She is not really an international traveler,” Greenspun said in dismissing McDonald as a flight risk were she to be released on bond – “I don’t think flight is an issue,” her attorney told the court. Assuring the court McDonald presented neither a flight risk nor a personal danger to the community if released Greenspun asked that his client be granted a personal recognizance bond.
However in arguing against bond, Layton questioned McDonald counsel’s quick dismissal of her as a flight risk, and questioned how deep her ties to the community really are.

Noting Friday’s filing of four felony charges related to the EDA civil suit seeking return of at least $17.6 million dollars in assets, Layton told the court, “Flight risk is a different animal with criminal charges in existence.”

As for McDonald’s health situation, which as her attorney pointed out could be generated by a pre-existing cardiac condition as opposed to stress from her current legal situation, Layton said the commonwealth was willing to take on the financial and medical responsibility of close oversight and treatment if necessary.

As for the defense portrayal of McDonald as a personally and professionally tied stable member of the community, Layton asked the court to consider if the defendant was what she presented herself to be publicly, or what the civil and criminal charges portray her to be.

Happier times on the job at EDA with then EDA Board Vice-Chairman, later Chairman, Greg Drescher, circa Spring 2017

Layton also noted that McDonald’s current employment was with one of her nine EDA civil litigation co-defendants. Earth Right Energy and its two principals Donald Poe and Justin Appleton are all named as defendants who allegedly worked with McDonald to misdirect or defraud EDA assets through improper contractual arrangements. They have denied those charges.

In defense rebuttal Greenspun said, “Mr. Layton’s pitch is ‘We don’t think she’s the nice person she portrays herself to be … she is a black widow-type person – we think there are problems here but we’re not going to tell you what they are.”

As for his client’s health, Greenspun noted she had been hospitalized for over 24 hours of her four days of incarceration. He also pointed out that by mutual agreement of jail and hospital officials McDonald had a stress test scheduled by her physician prior to her arrest moved up a day to be fit in around the day’s bond hearing.

In prefacing his decision Athey said he must look at the defendant in a totality of her situation. Pointing to the $17.6 million dollar amount cited in the civil litigation, the judge said access to 10% of that could offer a criminally-accused person incentive to flee.

McDonald was arrested Friday, May 24 on warrants issued by the Virginia State Police based on three days of testimony and evidence presented to a Special Grand Jury from Wednesday, May 22 to 24. Due to the direct indictment by the special grand jury no detail of the criminal complaint was included in paperwork accompanying court filings.

However the judge offered a hint as to the nature of the four charges when he mentioned “credit card transference” in prefacing his decision not to grant bond. The allegation of forged invoices to pay credit card debts is part of the “Afton Inn embezzlement” portion of the EDA civil suit.

As for McDonald’s health situation related to her heart, Athey said he would order that it be closely monitored while she is incarcerated.

Prompted by the judge, defense counsel requested Discovery from the prosecution. Athey gave the prosecution 30 days to respond, setting June 26 for the filing of that response.

Athey then set July 15 as a hearing date at which time McDonald will enter her plea to the four charges filed by VSP on May 24.