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

Aerial view of the old American Viscose Admin building where EDA headquarter are located, and apparently ground zero for an alleged conspiracy to misdirect at least $17.6 million in EDA assets. Royal Examiner File Photos/Roger Bianchini
Mark this day on your calendar – on Tuesday afternoon, March 26, the first legal hammer fell in the wake of a six-month, quarter-million-dollar-plus investigation of Front Royal-Warren County Economic Development Authority (aka Industrial Development Authority) finances.
That hammer was the civil litigation authorized by the EDA Board of Directors on March 22, following a closed session presentation of CPA consultant findings related to the audit and investigation of EDA business practices.
Nine defendants are named in the 199-point civil filing for relief seeking a minimum $17,640,446 in damages split among the named defendants, both persons and LLC’s.
Defendants named in the action filed by the Sands-Anderson law firm shortly after 2:30 p.m. Tuesday are former EDA Executive Director Jennifer R. McDonald (Front Royal); Donald F. Poe (Strasburg); Justin Appleton (Front Royal); Earth Right Energy Solar Commercial LLC, registered agent Mandy Newman (Strasburg); Truc “Curt” Tran (Great Falls, Va.); Warren County Sheriff Daniel T. McEathron (Front Royal); DaBoyz LLC, registered agent Jennifer McDonald (Front Royal); MoveOn8 LLC, registered agent Joseph F. Silek Jr. (Front Royal); and ITFederal LLC, registered agent Terry L. Fox (Burke, Va.).

In early 2018 Jennifer McDonald approached this reporter with a story about three years of slot-machine casino winnings totaling over $2.1 million to help explain a cash-rich real estate business under scrutiny by Royal Examiner Editor Norma Jean Shaw.
The introduction to the complaint states, “From at least 2016 until 2018, Jennifer R. McDonald, in her capacity as Executive Director of the Industrial Development of the Town of Front Royal and the County of Warren, Virginia (“Warren EDA”), engaged in a variety of schemes to unlawfully take money from the Warren EDA for her personal benefit. This is an action against Defendant McDonald and other confederates and co-conspirators to redress these unlawful takings and recover assets that are lawfully the property of Warren EDA.”
Cited in the civil action are EDA projects including the “ITFederal Loan; Subsequent Payments to ITFederal; Work Force Housing – Royal Lane Property Embezzlements; Afton Inn Project Embezzlements; Criminal Justice Training Academy aka Skyline Regional Justice Training Academy; Unlawful Payments Concerning Earth Right Energy LLC; and Unlawful Payment of Town and Warren County Funds for Defendant McDonald Owned/Controlled Real Estate”.

The $10-million loan from the EDA to Truc ‘Curt’ Tran and other appropriations to his ITFederal business are apparently a big chunk of the minimum $17.6 million in misappropriated funds being sought in the EDA civil suit.
The civil filing states that “Defendant McDonald has admitted to improper activities and conduct in her capacity as Executive Director of the Warren EDA, including taking monies from the Town of Front Royal, Virginia (“Town”) and Warren County, Virginia (“County”) bank credit facilities for several purposes other than which they were intended.
“On December 20, 2018, Defendant McDonald admitted in an email communication to being liable for $2,700,000 in Warren EDA losses. This admission undervalues the extent of her theft and unlawful distributions, but is one indication of her consciousness of guilt in her conduct. ”
December 20, 2018 is the day McDonald resigned by email as the EDA Board of Directors was poised to go into a second closed session within a week to discuss her job performance.
Lengthy documentation, as stated above 199 points worth, is cited to describe the alleged scheme to misdirect EDA monies to other uses and pockets.

Neither then-EDA Chairman Greg Drescher, nor Jennifer McDonald appeared happy fielding questions about the workforce housing project at a joint EDA-county board work session on June 5, 2017. The date was coincidentally between two alleged crimes, a reported May 18 EDA office break in and a reported June 15 vandalism at McDonald’s home.
The method of relief for the plaintiff for the $17.6 million-plus in damages suffered by the IDA/EDA is cited as “Rescinding the … unlawful, and/or fraudulent transactions referenced in the complaint; Imposing all fees, costs, and expenses associated with the rescission against the Defendants jointly and severally; granting the $17,640,446 minimum judgment amongst the Defendants; Ordering the Defendants to return all Warren EDA property, real, personal, and financial, to the Warren EDA” and “Awarding the Warren EDA at least $1,000,000 in punitive damages jointly and severally against the Defendants” as well as attorneys fees “further relief deemed necessary in the interest of justice, fairness and equity.”
And you may have wondered by EDA Board Chairman Gray Blanton, who took over the chairmanship following Greg Drescher’s resignation last August as these developments began coming to light, has seemed a tad frustrated, tense and anxious in recent months for the result of the EDA audit investigation to come to light. An attempt to reach Blanton for comment prior to publication was unsuccessful.

Current EDA Board Chairman Gray Blanton has finally gotten the long-anticipated final report on EDA finances – but the news, as suspected, wasn’t good.

Sands-Anderson attorney Dan Siegel, center during May 2018 sign off on Valley Health loan, signed the cover letter to Circuit Court Clerk Darryl Funk with Tuesday’s civil filing on behalf of the EDA.

Sheriff McEathron behind his desk at the county Public Safety Building. He announced last week that he would be retiring early, effective May 1, 2019. / Royal Examiner file photo.
EDA in Focus
Town Mayor Cockrell and County Economic Development Director Petty react to the Shenandoah Rail Trail event and public feedback
Royal Examiner asked several local officials who participated in Thursday evening’s Shenandoah Rail Trail presentation what they thought of the project, the public turnout, and feedback about the project. Front Royal Mayor Lori Cockrell introduced the evening’s event and some Rail Trail Partnership and local officials present for it, including Warren County Director of Economic Development Joe Petty. We queried both the town mayor and county economic development director on their perspectives.

Front Royal Mayor Lori Cockrell and County Director of Economic Development Joe Petty were among local officials mingling before the 7 p.m. start of the program’s agenda.
“I think the partnership prepared an excellent event. It provided information as well as opportunities to ask questions and share concerns and input. There was a large group of engaged people in attendance. I think I counted between 120-130 people,” Mayor Cockrell began, adding, “I was very encouraged by all the positive feedback I received. I even spoke with people who have previously lived in other communities with rail trails who have moved to our area. They were excited about having an opportunity like this locally.
“I also spoke with people who had concerns because they lived on property that borders the rail corridor. I think they had valid concerns. I connected them with members of the partnership who could gather their concerns and hopefully address them moving forward. That’s what last night was all about, getting the community’s input,” Cockrell concluded of the ongoing process of developing a citizen-friendly project.
County Economic Development Director Petty concurred with the mayor’s overall perception: “I thought the meeting went well and there was a good turnout. I was able to have open conversations with members of the community that are in support, have questions, or concerned with the project; and look forward to continuing those discussions with all of them in the future. I believe meetings similar to last night are important in order to engage with the public,” Petty said of the project’s developmental process.

Many citizens and officials arrived early and perused informational table displays manned by Shenandoah Rail Trail Partnership volunteers and staff.
“I also spoke with individuals regarding the economic impacts as defined in the Economic Impact Analysis, and how we can further highlight and explore the local benefits as well as expand on the regional benefits,” Petty concluded.
Mayor Cockrell concurred on the importance of the Economic Development Analysis:
“One area that was not focused on during the event was the specific numbers that came out of the Economic Impact Analysis. Benefits to our community were shared, but I think if citizens had the opportunity to see actual predicted numbers, actual dollars, they might be even more enthusiastic about the project!” she concluded with an exclamation point by email.

It was a full Fire & Rescue Company 1 parking lot – trust me, way beyond the front section pictured here – for the Shenandoah Rail Trail public informational meeting of March 23rd.
EDA in Focus
Shenandoah Rail Trail Partnership makes its case as a beneficial project, not only to Front Royal, but communities throughout the Valley
On Thursday evening, March 23rd, representatives of the Shenandoah Rail Trail Partnership gathered with local municipal officials from the Town of Front Royal and Warren County at the community meeting room of Front Royal Fire & Rescue Company 1 on Commerce Avenue for an informational presentation and community feedback opportunity.

Front Royal Mayor Lori A. Cockrell initiates the meeting agenda with a welcome from the host town government, and introduction of other local and Rail Trail Partnership participants. Below, it was a well attended event. Some present were still at surrounding informational tables as the official presentations began.
The Shenandoah Rail Trail project would convert abandoned railroad lines to community and tourist-friendly “walking, hiking, jogging, cycling (non-motorized it appears) and more” non-intrusive recreational uses. The proposed project would connect, not only communities from Front Royal/Warren County on its northeast to Broadway in Rockingham County at the south end of the trail, but also sections of each community to each other.
“Up and down the route, the trail connects students to school, employees to work, customers to shops, diners to restaurants, and community members to parks, rivers and historic sites,” a pamphlet available to attendees notes in its summary of the project. Of the planned path, it adds: “The rail corridor, once a community and economic hub of towns from Broadway to Front Royal, has not seen trains as far back as 1989. The tracks are now overgrown and, in some areas, completely unusable.”

Abandoned, overgrown railroad tracks or a transformed ‘Rail Trail’ connecting communities for low-impact recreational walks and bike rides. Below, informational tables drew members of the public, here including FR Councilman ‘Skip’ Rogers, left in white shirt, and WC Supervisor Walt Mabe, right blue shirt, prior to official agenda presentations.
The project includes the communities of Front Royal, Strasburg, Woodstock, Tom’s Brook, Edinburg, Mount Jackson, New Market, Timberville, and Broadway. Of the benefit to the
average Shenandoah Valley citizen of these communities, the Shenandoah Rail Trail group observes that many of the existing trails in National Parks and elsewhere “are remote and, by the nature of the terrain, suited for advanced trail users.
“Our rail trail is flat, primarily rural and scenic, and easily accessed from many towns and neighborhoods. It will be a safe and easy way to get outside to walk, run or roll with family members of all ages and abilities.”
The rail trail group also points to potential economic benefit from realization of the project in improving easily accessible amenities for area citizens – a plus for companies looking to locate in areas that provide “a high quality of life to the folks they employ” — and those folks could include locals recruited by new businesses moving into the valley.
The friendly nature of a flat, scenic walking, hiking and biking trail can also attract regional tourists, expanding the customer base for local shops, restaurants, and other businesses accessible from the rail trail.
Learn more by visiting <shenandoahrailtrail.org>
EDA in Focus
Federal Court ruling on McDonald criminal defense motion for change of trial venue may come this week
Update: As of March 14 our information is no decision has yet been rendered by the federal court judge on the McDonald defense motion for a change of venue for criminal trial slated for this mid-May to June.
On Wednesday, March 8th, the first pre-trial motions hearing in the federal 10th Western District of Virginia criminal cases against Jennifer McDonald related to the Front Royal-Warren County Economic Development Authority (FR-WC EDA) financial scandal will be held. One might anticipate a ruling by U.S. District Judge Elizabeth K. Dalton on McDonald’s defense motion to have the jury trial moved from Harrisonburg to Charlottesville. Other pre-trial motions are scheduled for March 28th and May 4th.
What is anticipated to be a five-week or longer trial on her 34 federal criminal indictments is scheduled to begin May 15, running into June. McDonald faces 16 counts of money laundering, 10 counts of bank fraud, seven counts of wire fraud, and one count of aggravated identity theft, the latter related to the Truc “Curt” Tran/ITFederal case.
Federal court-appointed defense counsel for McDonald, Eric Trodden, filed the change of venue for trial last month. He asserts that his client is not likely to get an unbiased jury in Harrisonburg due to Shenandoah Valley regional media reporting about McDonald and other related civil cases in which she was a witness or topic of legal arguments pointing a finger at her alleged role as the central figure in the estimated $26-million financial embezzlement and misappropriation of FR-WC EDA funds scandal.

Jennifer McDonald mugshot following July 2019 arrest on initial criminal charges filed while prosecution was based in Warren County. Below, the FBI and Va. State Police on site seizing potential evidence at the FR-WC EDA office in April 2019.
There have been numerous delays in criminal prosecutions as the EDA criminal cases were moved due to local conflicts of interest or dropped due to speedy trial concerns surrounding the voluminous amount of evidentiary material, now estimated at over a million pages. For the most part, McDonald has been free on bond or out of jail as initial criminal charges were dropped at the state level due to those speedy trial concerns. Those jurisdiction moves were, first, from Warren County’s Commonwealth’s Attorneys Office to Rockingham County’s prosecutors office in Harrisonburg, then to the above-referenced federal district court also in Harrisonburg.
Last year McDonald was indicted on those 34 federal criminal charges related to the FR-WC EDA financial scandal of 2014-18 during her decade tenure as EDA executive director. As previously reported by Royal Examiner and others, EDA attorneys went on a civil case trial winning streak beginning in July of 2022 and ending in October with the initially delayed civil liability trial of McDonald’s husband, Samuel North. EDA counsel won 5 of 5 verdicts of personal liability, 7 of 7, including two related company liability findings in 2 of those cases. Total liability found by those five civil case juries, including compensatory, punitive, and statutory conspiracy findings, amounted to about $14 million. With out-of-court settlements, including a “no-fault” agreement with McDonald for real estate estimated at about a $9-million value, the EDA has, on paper, recovered about $24 million. (See related stories on the Royal Examiner website).

EDA civil case legal team from Sands-Anderson law firm, led by Cullen Seltzer, left, here with Kimberly Paulsrud, was on a mid-2022 civil liability roll, winning jury judgments totaling about $14 million in five trials against seven defendants, including two companies, ITFederal and Earth Right Energy, tied to involved defendants.
And while the related civil cases were held in Warren County Circuit Court in Front Royal, that local and regional reporting of McDonald’s often given 5th Amendment responses asserting her Constitutional right not to self-incriminate, in addition to EDA attorneys descriptions of her as the orchestrator of an alleged conspiracy to misdirect municipal and EDA assets to her and others personal gain, may have found its way to potential jurors in Harrisonburg is more than likely, her defense counsel asserts. The fact that Charlottesville, while only 11 miles further from Front Royal at 74 miles to Harrisonburg’s 63 miles, is considerably east of Harrisonburg and not part of the Shenandoah Valley-based regional media has largely insulated the Charlottesville community’s potential jury pool from the story, McDonald’s attorney believes. And the slight difference in distance from Front Royal/Warren County will not cause undue hardship on witnesses based in Front Royal and Warren County, McDonald’s attorney argues in his motion for the venue change.
Will the federal judge agree? – Get the popcorn and stay tuned for Wednesday’s pre-trial motions hearing, and we may find out.
EDA in Focus
County’s EDA Board authorizes another confidential settlement agreement at end of monthly meeting review of ongoing projects and opportunities
The Front Royal-Warren County EDA held their monthly meeting on Tuesday, February 28, 2023, at 8 a.m. All five Board members and the County Director of Economic Development were present at the Warren County Government Center Caucus Room. Following a closed session at the meeting’s conclusion, the board approved a resolution accepting another confidential settlement agreement. It is believed the agreement involves multiple civil litigation defendants in the 2014-2018 FR-WC EDA financial scandal cases. The wording of a portion of the motion to accept the confidential agreement states: “WHEREAS, the EDA desires to enter into the confidential settlement agreement with confidential parties providing for a confidential settlement payment to the EDA;”. There was no action on the other closed session topic, “business opportunities”.
As part of the Committee Reports, Board Chair Jeff Browne provided an update on the marketing plan in anticipation of formalizing the path forward at the next meeting. Mr. Browne also gave an overview of the presentation that he and the Director of Economic Development, Joe Petty, provided to the Virginia Economic Development Partnership’s (VEDP’s) Business Investment Team earlier this month.
Treasurer, Jim Wolfe, and Joe Petty provided an update on the proposed FY-2023-24 and FY-2024-25 Budgets, and they will be reviewed by the County Board of Supervisors on Thursday, March 2 at 7:30 PM.
Secretary, Jorie Martin, gave a recap of the recently held Open-Door Business Session hosted at the Virginia Inland Port on February 23, 2023.
Mr. Petty provided an update on the Department’s recent activities that including meeting with prospects, planning for upcoming regional programs, and presentations at meetings both locally and out-of-town.
As a follow up to old business the County and EDA will continue to move forward on IT (Information Technology) and social media programs that include resolving security and administrative rights to access profiles and data to ensure that all information is secure and up-to-date.
Presented as new business, Jorie Martin and Scott Jenkins provided the Board with a draft Request For Information (RFI) for the Avtex Redevelopment Site. The Board agreed to share the working document with the Town, as well as County, in order to provide additional feedback on the final version. There was also a discussion regarding ongoing work on a financial process Memorandum Of Understanding (MOU) between the EDA and the County to consolidate multiple agreements and clarify the process moving forward.
The next regular monthly Board meeting will be held on Friday, March 24, 2023, at 8:00 AM at the Warren County Government Center Caucus Room.
(From a release by the FR-WC EDA)
Crime/Court
EDA officials, attorneys mum on circumstance of Rappawan/Vaught Jr. civil case dismissal – But a good guess might be…
The Front Royal-Warren County Economic Development Authority has made another out-of-court resolution of part of the civil litigation surrounding the financial scandal alleged to have been orchestrated by former FR-WC EDA Executive Director Jennifer McDonald between 2014 and 2018. In the wake of a jointly filed motion of December 21, 2022, filed with the court six days later, the EDA’s civil claim against Rappawan Inc. and company official William T. Vaught Jr. was dismissed “with prejudice” – meaning it cannot be refiled.
Vaught Jr. and Rappawan were involved in a 2016 transfer of real estate assets with Jennifer McDonald over a 37 day period in which McDonald, utilizing her DaBoyz real estate company and EDA assets according to the civil action claim, bought a piece of property from Rappawan/Vaught Jr. for $1.9-million dollars, then sold it back to Rappawan/Vaught Jr. 37 days later for $1.3 million, absorbing a $600,000 loss. The EDA alleges McDonald made the transactions with EDA assets and without the knowledge or approval of the EDA Board of Directors.
Royal Examiner contacted what is now the unilaterally Warren County-overseen FR-WC EDA Board of Directors Chairman Jeff Browne about the December resolution of the Rappawan/Vaught Jr. civil action. Browne explained that as part of that resolution he could not comment on the case dismissal. EDA counsel Cullen Seltzer and Executive Director Joe Petty both confirmed the gag order on details of the EDA/Rappawan/Vaught Jr. joint filing for dismissal of the civil case.
But with the EDA and its contracted Sands-Anderson legal counsels’ 5-for-5 track record in five civil jury findings of liability against 7 other civil case defendants last year, one might hazard a guess the EDA did not agree to the binding dismissal without realizing at least a significant compensatory claim in either real estate or cash as part of that dismissal agreement – let’s take a wild guess, somewhere in the $600,000 range.

File photo of EDA’s Sands Anderson legal team leaving the Warren County Courthouse last year during its five civil trial winning streak against a total of seven defendants awarding over $14 million in civil liability claims to the EDA. Seven more defendants – 3 companies, 4 people – have sought and received a continuation on their trials originally slated to begin March 13. Those trials seeking over $4 million in collective liability are likely to be rescheduled for June, following Jennifer McDonald’s criminal trial in the Western District of Virginia federal court in Harrisonburg. That initial criminal prosecution in the EDA financial scandal case is scheduled for as many as 5 weeks in May-June.
In four trials last July and one more in October, five people and two companies were found liable for over $14 million in compensatory, punitive, and statutory conspiracy damages by Warren County civil trial juries. Judge Bruce D. Albertson later dismissed all defendant motions to have the jury verdicts overturned.
As previously reported, the EDA reached an out-of-court, “no-fault” settlement with McDonald for an estimated $9-million in real estate assets held in her or one of her real estate companies names. It would appear that such out-of-court settlements shield defendants against punitive or statutory conspiracy claims that tacked significant additional financial liability to several defendants in civil case verdicts handed down in July and October 2022.

This chart does not include the jury’s October ruling on McDonald’s husband Samuel North’s liability. North was found liable for the base compensatory claim of $110,000, as well as $165,000 on a finding of Statutory Conspiracy, another $350,000 in Punitive Damages on a ruling of Malicious Intent, bringing liability to $625,000. With interest, estimated at $268,000 added, North’s total liability was ruled at approximately $893,000.
Delayed civil cases
In other EDA civil court news, attorneys for seven more defendants – three companies and four people associated with those companies – filed a joint motion on January 3rd to have civil trials slated for March 13 continued to a date following Jennifer McDonald’s trial on criminal charges related to the EDA financial scandal. McDonald’s trial on over 30 criminal indictments is now scheduled for as many as five weeks in May-June in the Western District of Virginia federal court in Harrisonburg. Those defendants filing for a continuation were: TLC Settlements LLC and Tracy L. Bowers; Campbell Realty Inc., Jeanette M. Campbell and Walter L. Campbell; Service Title of Front Royal LLC and Victoria L. Williams.
The plaintiff EDA claims those companies involvement in some of McDonald’s real estate transactions utilizing EDA assets it says never received the necessary EDA board authorization led to the unjust enrichment of defendants as part of the conspiracy it alleges McDonald orchestrated to move EDA assets to her own benefit, as well as the benefit of other involved parties. EDA counsel filed a Memorandum in Opposition to those filings for delay in the civil trials of those defendants.
Several defense counsel pointed to McDonald’s past testimony in other related civil trial where the predominance of her testimony was to plead her 5th Amendment right against self-incrimination with the criminal cases hanging over her. Should she be acquitted, more forthcoming testimony exonerating their clients might be expected, defense counsels reasoned.
In arguing against the continuance, EDA attorneys noted that the case against these defendants collectively seeking over $4.4-million in damages was filed on April 15, 2020, and all the defendants were served two days later, with the court setting the trial to open March 13, 2023, on June 18, 2020. Plaintiff EDA counsel viewed the motion to continue as a reaction to the EDA’s string of successful civil prosecutions referenced above.
As Royal Examiner as previously reported, including the no-fault out of court settlement with McDonald and the five civil trial verdicts against seven other defendants last July and October, on paper the EDA has been awarded approximately $23 million in liability or settlement findings. And as noted above, with the closing of information on the jointly agreed upon Rappawan/Vaught Jr. civil case dismissal, it remains unknown if that settlement may have raised the compensation which the EDA has achieved in or out of the courtroom into or past the $24-million range.
On February 2nd Judge Albertson removed these civil cases from the March Warren County Circuit Court docket and told attorneys to seek mutually available dates in June for those defendants cases to be heard. Of course, that assumes the oft-delayed and batted from one jurisdiction to another criminal cases against McDonald aren’t once again continued on a motion by her federal court-appointed attorney.
EDA in Focus
FR-WC EDA moves to guarantee records protection during transition to County IT oversight, goes to Closed Session on litigation, business matters
The Front Royal-Warren County EDA held a special meeting on Wednesday, February 1, 2023, at 3:00 PM at the EDA Office on Kendrick Lane. All five Board members, legal counsel, and the County Director of Economic Development were present.
The meeting began with the discussion of moving the February Regular Meeting from Friday, February 24, to Tuesday, February 28 at 8:00 AM. The schedule change was unanimously approved.
Following the schedule discussion, the Board requested legal counsel to draft an agreement to protect EDA records in order to move forward with the information technology transition with the County.
The Board concluded the meeting with a closed session to discuss potential disposition of real property to business prospects, the small business loan committee applications, and legal consultation regarding active litigation. There was no new business following the closed session.
As noted above, the next regular monthly Board meeting will be held on Tuesday, February 28, 2023, at 8:00 AM at the Warren County Government Center.