Poe, new McDonald indictments are a near perfect wording match

EDA Special Grand Jury witnesses line up outside the ever-familiar Warren County Courthouse – just kidding as the fall leaves would indicate. Thought you faithful readers deserved a different courthouse photo than our normal rotation. Royal Examiner File Photo/Roger Bianchini

The three Special Grand Jury indictments served on Earth Right Energy (ERE) controlling partner Donald Fears Poe on Tuesday, July 23, were entered into the Warren County Circuit Court Clerk’s Office records the following day. And as suspected the two financial fraud charges mirror the language in the two new indictments served on former EDA Executive Director Jennifer McDonald on Monday, July 22.

Donald F. Poe jailed on EDA-related fraud charges

In fact other than one word change – substituting “from” for “belonging to” in Poe’s indictment – reflecting their relative positions outside and inside of the EDA, Count One of McDonald and Poe’s new indictments are a precise word-for-word match.

That match includes the dates of the alleged offense being between September 1 and September 22, 2018, and the allegation that Poe and McDonald both did “feloniously conspire with another to obtain by false pretense United States currency having a value of more than $500 from the Front Royal Warren County Virginia Economic Development Authority with the intent to defraud” in violations of state codes.

The differences in Count Two of the McDonald and Poe indictment also reflect their positions inside and outside of the EDA. Whereas a McDonald Count Two indictment reads:

“On or between September 18, 2018 through September 20, 2018, in the County of Warren, Jennifer R. McDonald did unlawfully and feloniously to wrongfully and fraudulently use, dispose of, conceal, convert, or embezzle property belonging to the (FR-WC EDA), with a value of $500 or more, which she had received for the benefit of said (FR-WC EDA) by virtue of her office, trust, or employment” in violation of state codes;

Jennifer McDonald’s RSW mug shot upon her rebooking into the jail this week for her Tuesday motions hearing – Photo RSW website

Poe’s Count Two states that:

“On or about September 18, 2018 through September 22, 2018, in the County of Warren, Donald Fears Poe did unlawfully and feloniously obtain by false pretense United States Currency, having a value of more than $500 with the intent to defraud” in violation of state codes.

As noted in yesterday’s above-referenced story, the Cherry Bekaert fraud investigative working papers notes a $409,812 wire transfer dated September 19, 2018 from the EDA operational account to Earth Right Energy for work at the EDA Kendrick Lane office complex.

Also as noted in yesterday’s story on Poe’s arrest, the Cherry Bekaert summary findings track EDA-ERE financial interactions from July 10 through September 19, 2018.

During that period the fraud report cites seven payments totaling nearly $1.28 million dollars made to Earth Right Energy. Six of those payments came out of the EDA Operating Account, with one $18,000 payment cited from United Financing.

Of those seven payments, four totaling $841,904 were cited for solar installation at the massive Baugh Drive warehouse property and three totaling $437,984.21 were for solar installation and related work at the EDA’s Kendrick Lane office and tenant complex. The final of those payments, of three on the Kendrick Lane solar installation, was made September 19 in a wire transfer of $409,812.48. The Kendrick Lane work appears to have been done, though it is not clear if it was completed since at last public report the EDA still was unable to break down electrical usage between the different tenant locations in the Kendrick Lane office complex.

However it appears the bulk of the $841,904 Cherry Bekaert alleges was paid to Poe’s Earth Right Energy Solar Energy company “for solar equipment and installation that was never received” relates to the Baugh Drive project, which the EDA elected not to pursue.

Donald F. Poe upon being booked into RSW Jail on three EDA-related indictments Tuesday afternoon – Photo RSW website

And while ERE attorneys have pointed to a $334,851 reimbursement to the EDA on the Baugh Drive project, as noted above the Cherry Bekaert report cites a considerably larger amount in payments made to Poe and minority partner Justin Appleton’s company on that project that was not followed through on.

Poe’s third charge is giving false testimony under oath, or perjury, cited as occurring on June 21, 2019. That likely involves Poe’s being called before the Special Grand Jury investigating potential criminality tied to the EDA civil litigation filed March 26. Poe, his Earth Right Energy partner Appleton and the company are three of the nine defendants named in that suit.

Sheriff, ITFed principal Tran, Donnie Poe named with McDonald in EDA civil suit

As with previous indictments filed by the Special Grand Jury, 14 against Jennifer McDonald and two against Michelle Henry, the three sealed indictments handed down against Poe by the grand jury on July 23 were signed by Special Grand Jury Foreman Bryon T. Biggs.

Poe is not likely to appear in Warren County Circuit Court on a bond hearing before next Wednesday, July 31, when Harrisonburg-based 26th Judicial District Chief Presiding Judge Bruce D. Albertson is due back to hear motions in the McDonald and Henry cases.

Henry freed on $2,500 secured bond in EDA case; McDonald hearing July 31