Recent Chairman Scott Jenkins Will Represent EDA Board in McDonald Criminal Convictions Pre-sentencing Arguments

The now unilaterally County overseen Front Royal-Warren County Economic Development Authority (EDA, FR-WC EDA) convened a Special Meeting Friday morning, March 8. Shortly after the meeting’s 8 a.m. opening a Resolution was approved appointing the recently departed EDA Board of Directors Chairman Scott Jenkins to represent the EDA in the looming criminal sentencing hearing of EDA “financial scandal” era Executive Director Jennifer McDonald. Due to conflicting time commitments to his seasonally based Mountain Home Bed & Breakfast business, Jenkins did not apply for reappointment to the EDA board when his term ended February 29.

There was no further word on the planned resignation and replacement of two more members, Jim Wolfe and Marjorie “Jorie” Martin. At a recent meeting those members, who are also members of the EDA Asset Committee, indicated they would be resigning prior to the end of their terms, a year away for Wolfe and two years for Martin, and likely by the end of March. Queried about the reasons for their resignation plans, Martin told Royal Examiner on March 12 that her resignation is “on hold”. We had not heard back from Wolfe by publication of this story.

The EDA board, pictured here in February, could be down 3 members if Jim Wolfe, center left, and Jorie Martin to Wolfe’s left, follow then-Chairman Scott Jenkins, far head of table, into retirement from the board. – Royal Examiner Photos Roger Bianchini

After being delayed from February 12 to accommodate completion of medical examinations McDonald was undergoing at the request of her defense team, her sentencing is now slated for April 9 in the Western District of Virginia federal courthouse in Harrisonburg. As readers will recall McDonald’s trial, which began August 21 last year with a forecast five to six-week duration, was delayed several times due to physical issues of participants, most notably McDonald who received a pacemaker after dealing with COVID, heart rate and blood pressure issues during the trial. After beginning deliberations the morning of November 1, shortly after 1 p.m. that day nearly 10 weeks after the trial’s start, the federal jury handed down convictions on all 34 counts against McDonald related to charges of the unauthorized or fraudulently based movement of millions of dollars of EDA assets. However, Judge Elizabeth K. Dillon upheld defense motions for dismissal of four of those convictions, as we recall related to communications about the planned movement of real estate assets.

Now scheduled for April 9, the Federal Courthouse in Harrisonburg will be the site of arguments regarding the severity of the sentencing of Jennifer McDonald for her role in the EDA “financial scandal”.

As to having an EDA representative familiar with some aspects of the aftermath of the misdirection of EDA assets estimated in the neighborhood of $26 million, of which trial testimony or evidence indicated about $6.5 million went to McDonald’s own personal benefit, the motion to appoint Jenkins reads:

“WHEREAS, the Front Royal-Warren County EDA desires to have a representative and agent to speak on its behalf with law enforcement officials and with the Court in connection with the … sentencing of Jennifer McDonald in the US District Court for the Western District of Virginia;

“WHEREAS, the Front Royal-Warren County EDA desires that its representative and agent be permitted to have access to information required for that purpose and access to the EDA’s legal counsel in connection with this service;

“RESOLVED that Scott Jenkins, the most recent chair of the Board of the Front Royal-Warren County EDA whose service on the EDA’s Board ends on February 29, 2024, is appointed the Warren EDA’s agent and representative for the purposes set out herein and may consult in connection with this matter with the EDA’s legal counsel in a manner the EDA intends to be protected by the attorney-client privilege.”

Following approval of the Resolution, former Vice-Chairman JD Walter, now chairman, led the board into a Closed Session on two items, perhaps ironically, the first being: “Discussion pertaining to actual or probable litigation … EDA vs. Jennifer McDonald et al., EDA v. Town of Front Royal et al.” followed by, “Discussion of disposition of publicly held real property …” identified as Stephens Industrial Park – Lot 2.

Jennifer McDonald after her arrest in May of 2019, some 5 months after she resigned by email as her board began exploring in closed sessions the circumstances of certain EDA real estate, financial transactions, and loans achieved during her directorship.

After closed session there were no additional announcements related to EDA “financial scandal” litigation. However, the Board approved “extending the contract due diligence on Stephens Industrial Park, Parcel 2 for 60 days, with no change to the current settlement date.”