Solar company named in EDA litigation joins sheriff in denying involvement

On Friday, March 29, Earth Right Energy Solar Commercial LLC issued the second statement of denial of any involvement in money laundering, embezzlement or theft of assets related to Jennifer McDonald’s tenure as executive director of the Front Royal-Warren County Economic Development Authority.

Earth Right Energy and its principals Donald Poe and Justin Appleton joined Warren County Sheriff Daniel McEathron in denying knowledge of the alleged funneling of EDA funds into private sector hands McDonald is accused of facilitating during at least the final three years of her tenure as EDA executive director.

As noted in the civil action, McDonald admitted to liability for $2.7 million in misdirected EDA assets in a letter to EDA attorney Dan Whitten on December 20, 2018, the day she resigned. The EDA civil action notes that while she admitted guilt, McDonald greatly underestimated her actual liability in the December 20 letter. The EDA civil action seeks recovery of lost EDA assets estimated at a minimum of $17.6 million, including a $10-million loan to ITFederal and its principal Truc “Curt” Tran.

Then-EDA Executive Director Jennifer McDonald pulled double duty as Front Royal Rotary President about three years ago.

The overview of the 199-point civil suit filed Tuesday, March 26, states, “Defendants engaged in a variety of schemes and artifice to unlawfully enrich themselves at the expense of the Warren EDA. The schemes, as set out more fully below, related to money unlawfully taken by one or more Defendants related to the following matters …”

Two of those matters are McDonald-controlled real estate companies, DaBoyz and MOVEON8 in which McEathron was listed as a partner; a third was “Unlawful Payments Concerning Earth Right Energy, LLC”. LINK-Sheriff, ITFed principal Tran, Donnie Poe named with McDonald in EDA civil suit

The lawsuit’s elaboration on those matters alleges EDA losses of a minimum of $3,562,100 through McDonald real estate company transactions; and a minimum loss of $945,037 in unauthorized contractual arrangements with Earth Right Energy.

A $27-million contract McDonald is stated to have entered into for the EDA with Earth Right Energy in early September 2018, without the knowledge or approval of her board, for the installation of solar panels on Warren County Public Schools is said to be “unlawfully procured … invalid, and unenforceable” though no money is stated to have changed hands from that contract.

Darn, we really wanted those solar panels, Greg Drescher and Jennifer McDonald may have been thinking – or not …

“Earth Right Energy unequivocally denies any wrongdoing in its relationship with the Economic Development Authority of the Town of Front Royal and the County of Warren, Virginia (“EDA”), and its employees, agents, and representatives. The inaccurate and misleading allegations of impropriety related to Earth Right Energy within the EDA’s lawsuit are totally unfounded and untrue. We intend to vigorously defend ourselves and our stellar reputation.”

The Strasburg-based company notes it was never contacted during the six-month forensic audit of EDA finances and denies the civil litigation contentions it was paid for work never done or was consciously aware of any wrongdoing on its part.

“For the record, while Earth Right did perform work for the EDA, it did so successfully and completed its contractual obligations. Inexplicably, while numerous issues related to the EDA have reported to have been under audit and investigation, at no time, did anyone contact us with questions or seek clarification about the business history that we had with the EDA. Instead of conducting responsible due diligence and inquiry, the EDA and its Board and representatives elected to file suit.”

The company promises an aggressive defense against any complicity or responsibility for lost EDA assets on its part; and threatens counter litigation.

“Earth Right Energy and its agents have been deeply aggrieved by EDA’s actions and the false allegations made within its lawsuit. We will vindicate our reputation and interests by aggressively litigating this lawsuit and potential countersuit. Any further statements concerning this matter will be made in open court,” the Earth Right Solar statement concludes.

As previously reported, on March 27 the day after the EDA civil filing, Sheriff McEathron released the following statement: “I am in shock of the allegations and want the public to know I have done nothing illegal, either personally or professionally. Those that know me know who I am and what I stand for and that I would never do anything to compromise my position. Keep my family and my office in your prayers as I work my way through this.”

Two days later the Poe-Appleton led solar energy company has joined in denying any knowledge of financial wrongdoing related to its business dealings with the EDA through the former executive director.

So in these early statements of innocence by McDonald’s civil litigation co-defendants we may see an emerging pattern of defense: that those co-defendants – like the EDA Board of Directors, Town and County officials – were in the dark about alleged financial wrongdoing involved in McDonald’s movement of money and EDA contractual assets involving them; and that they, like the EDA board, are victims too.

However according to the litigation the alleged unauthorized and likely illegal financial benefit achieved by those defendants individually or collectively remains unreturned to the EDA.

Madden requests, Athey empanels special grand jury in EDA case

So duped or not, the EDA lawsuit holds those defendants to be civilly liable for whatever financial benefit they realized from those McDonald-driven transactions they were a part of.

With the empanelment of a special grand jury to explore, not only malfeasance surrounding alleged embezzlement of EDA assets, but the potential role of ‘public elected and appointed officials and/or their employees’ of the county, town, sheriff’s office and county public schools, the specter of the Warren County Courthouse is looming large across this community.