Out of Friday Closed Session, EDA announces Settlement Agreement with Linda Hassenplug in financial scandal civil case claim

Following a lengthy closed session to open its meeting of Friday, May 27^th, the Warren County Economic Development Authority Board of Directors announced a civil case Settlement Agreement with Linda Hassenplug related to her former Little Rug Rats daycare center. Hassenplug, Jennifer McDonald’s mother, was one of the co-defendants named by the EDA in its civil litigation effort to recover as much as $21 million in assets the EDA believes to have been misdirected to the personal financial gain of herself and others by former EDA Executive Director Jennifer McDonald between 2014 and 2018.

That Settlement Agreement as described to Royal Examiner by EDA Board Chairman Jeff Browne, is for payment of $50,000 at a 6% interest rate at the time Hassenplug and her husband’s house is sold. As we understand the agreement there is no imposed timeframe on the Hassenplugs having to leave their home. But as with the “no-fault” $9-million civil case Settlement Agreement also involving real estate reached with McDonald earlier, resolution of EDA claims outside the courtroom reduces the time and resources put into legal actions related to asset recovery tied to the financial scandal. Settlements with four or five other civil case defendants have also been reached.

The WC EDA office off Kendrick Ln. where the May 27 meeting was held, and another financial scandal civil case Settlement Agreement was announced.

In other business the EDA board approved a change in its bylaws as it currently operates with two vacant board positions. That change reduces the number of members required to be present to create a meeting quorum from four to three. The four-person quorum was created for a full seven-person board. At two members down, the EDA board is currently at five.

Also approved at the meeting was an annual housekeeping matter, reaffirmation of the Support Agreement with First Bank and Trust of Winchester on the EDA’s reworked loan package. As Browne explained, that renegotiated loan package accomplished several years ago saved the EDA several hundred thousand dollars over the life of the loan.