The run of county government administrative departmental staff defections continues to expand with a notice on the Warren County website about “Job Opportunities” now including the County’s in-house Director of Economic Development. It is a position held by multi-faceted County staffer Joe Petty since the position’s creation in early 2022. Petty verified that he was hired to the in-house County EDA Director’s position on February 1, 2022. The position was created in the wake of the Front Royal-Warren County Economic Development Authority (FR-WC EDA, EDA) becoming unilaterally overseen by the County in the wake of the Town of Front Royal’s post-financial scandal withdrawal as it attempted to distance itself from financial liability for project costs or losses during the 2014-18 FR-WC EDA “financial scandal” time-frame under the EDA executive directorship of Jennifer McDonald.

Two perspectives of Joe Petty on the job, above reporting to the WC Board of Supervisors on work at the now unilaterally County-overseen FR-WC EDA; and below at an EDA Asset Committee meeting. Remember, Petty’s soon-to-be former position was with the County, not the EDA. By state law EDAs are an independent “quasi-governmental” entity of its creating municipality, or as in this case, municipalities. – Royal Examiner File Photo

Contacted about his departure, Petty verified that his last day will be Friday, May 17. “I’m happy to have been at the County for so long. I’m leaving on good terms. I have a new opportunity in the community, so, I’ll still be around. I’ll miss the people here,” he added of leaving the Warren County Government Center where he has been employed since January of 2018. His history with the Warren County government began the first month of 2018 when he was hired as Zoning Officer. In July 2019 he was promoted to Zoning Administrator and became Planning Director in April 2021, before being named Warren County’s first in-house Director of Economic Development in February 2022. He pointed out he initially held down double duty there, continuing his work with the Planning Department until Matt Wendling was hired as Planning Director in May of 2022.

The starting salary for the County Director of Economic Development and Tourism position is advertised at $93,308.80 “depending on qualifications and experience, with an excellent benefits package.”

Asked about his new opportunity locally, Petty declined comment, saying he would let the announcement come from the organization that was hiring him. Asked if we should call a historical or perhaps “heritage” society for that verification, Petty was non-committal. At publication we were still awaiting a return call from the Warren Heritage Society from someone in position to verify their pending hiring of a new director, or not.

Petty’s departure follows a growing list of lost administrative staffers and institutional knowledge beginning about six years ago in the wake of the pressured resignation of long-time County Administrator Doug Stanley, whom some thought was being scapegoated by a newly-elected board for a lack of preventative County EDA oversight regarding the “financial scandal”. Offered Stanley’s job, then long-time Deputy County Administrator Robert Childress declined, choosing rather to leave for employment elsewhere. Following Childress eventually to other employment opportunities, not necessarily higher-paying ones, have been County Attorney Dan Whitten, also long-tenured Planning Director Taryn Logan, Assistant County Attorney Caitlin Jordan, along with several finance directors over a relatively short period of time as the county government has dealt with the financial and litigation aftermath of the FR-WC EDA “financial scandal” circa 2014-2018.

For an interesting perspective on the financial aftermath of the EDA financial scandal, check Royal Examiner’s OPINION page for a new Letter to the Editor from recent former EDA Treasurer Jim Wolfe, who left the EDA board when his four-year term expired at the end of April.

The Front Royal-Warren County Economic Development Authority (EDA) convened its monthly meeting on April 26, 2024, discussing significant developments in regional economic projects and workforce programs. The meeting at 8 a.m. saw the participation of six Board members and the EDA’s legal counsel.

The session opened with updates from Joe Petty, the County Director of Economic Development, who highlighted the ongoing budget meetings for the Fiscal Year-2025. Petty also touched upon various initiatives aimed at bolstering workforce development in the area, signaling robust efforts to enhance local employment opportunities and economic growth.

A major portion of the meeting was dedicated to discussions on real property and strategic legal matters. The Board made several key decisions after a closed session focused on these issues. They approved a substantial contract with Plein Smith, totaling $6,260,000, for Happy Creek Technology Park developments. This project is anticipated to settle within 2024 and promises to boost the local technology sector.

Furthermore, the Board agreed on the fourth amendment of the contract with Executive Land Holdings IV, LLC concerning Stephens Industrial Park. This amendment is part of ongoing efforts to enhance industrial infrastructure and attract more businesses to the region.

A new agreement was also set in motion regarding a gas line easement with Columbia Gas. This agreement is pending formal acceptance by Executive Land Holdings IV, LLC, and is expected to facilitate better utility services for upcoming developments.

The next EDA meeting is scheduled for May 17, 2024, at the Warren County Government Center. As the community looks forward to further economic developments, these decisions mark significant progress in Front Royal-Warren County’s trajectory towards enhanced economic vitality and infrastructure growth.

(From a Release by the FR-WC EDA)

In the wake of the April 9, Part One Sentencing Hearing of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald, the website court calendar of the 10th Western District of Virginia has finally posted a date for Part Two of that hearing. That date is Wednesday, May 29, 2024, on the 10 a.m. docket in the Harrisonburg federal courthouse where McDonald was convicted of 30 criminal counts related to the FR-WC EDA “financial scandal” circa 2014 to 2018. Those who have followed that story since it began unraveling, including on these pages from the fall of 2016 to late 2018, will recall an estimated $26-million in EDA assets was moved to unauthorized or what is now believed to be fraudulently presented uses. Trial testimony indicated McDonald moving about $6.5 million to her personal use unauthorized by the then EDA Board of Directors.

As reported in our coverage of that April 9 hearing, Part Two will hear Judge Elizabeth K. Dillon’s rulings on a number of objections filed by both the prosecution and defense counsels to the precedence of evidence submitted by the other side in written summaries to the court leading up to the April 9th start of McDonald’s sentencing hearing. Also argued on April 9 were “Forfeiture” of defendant McDonald assets, “Restitution”, and “Special Conditions” being sought at sentencing from both the prosecution and defense. While Judge Dillon ruled on a number of these objections on April 9, she took some under advisement, seeking written support from both sides to their motions arguments.

The federal courthouse in Harrisonburg, where final pre-sentencing arguments will be heard on May 29. At that Part 2 hearing, a date will be set by Judge Dillon for Part 3, when Jennifer McDonald is expected to be sentenced from 6 to 22 years in prison on her jury convictions on 30 criminal counts related to the estimated $26-million EDA ‘financial scandal’ during her executive director leadership. Royal Examiner File Photos Roger Bianchini

In addition to those rulings, prosecution and defense counsel are expected to make final arguments in support of their sentencing proposals, and Judge Dillon will set a date for Part Three of the Sentencing Hearing. Part Three is when the 47-year-old McDonald is anticipated to find out the court’s ruling on arguments for relative leniency to prison sentencing guidelines, six years, by her legal team versus the prosecution’s high-end request. The prosecution is seeking a 22-year sentence with 24 months sought for an Aggravated Identity Theft conviction of McDonald regarding the use of Truc “Curt” Tran’s name in one involved “financial scandal” real estate transaction, tacked on to a total of 240 months (20 years) being sought on McDonald’s other 29 convictions on fraud and money laundering counts.

According to court documents filed in the run up to the April 9 sentencing hearing of former Front Royal-Warren County Economic Development Authority Executive Director Jennifer McDonald a sentencing range of from 6 years to 24 years will be argued between defense and prosecution counsels in Harrisonburg’s 10th Western District of Virginia courthouse this Tuesday. Both sides will present witnesses to bolster their sentencing requests. It might be noted that McDonald is 47 years old.

According to the prosecution’s filing of its Sentencing Memorandum to the court: “The Government recommends a total sentence of 22 years, or 240 months (20 years) for the fraud and money laundering counts, to be followed by 24 months (2 years) for aggravated identity theft, to satisfy the factors enumerated in 18 U.S.C. § 3553(a). The Government further requests the Court order restitution to the EDA in the amount of $3,544,268.60 and enter a forfeiture money judgment in the amount of $5,201,329. The Government further recommends a period of supervised release of three years and that no fine be imposed.”

As to their prison time recommendation federal prosecutors note that: “The United States Sentencing Guidelines, as calculated in McDonald’s Pre-sentence Investigation Report (“PSR”), ECF No. 248, call for a range of imprisonment of 235 (19.7 years) to 293 months (24.5 years), to be followed by a consecutive 24-month (2 year) term of imprisonment for Count 18, Aggravated Identify Theft.”

On Tuesday, April 9, the federal courthouse in Harrisonburg will see the end of the long and winding road of criminal prosecution in the Jennifer McDonald chapter of the 2014-2018 FR-WC EDA “financial scandal”.

The additional two years on the aggravated identity theft charge involves another EDA “financial scandal” figure, ITFederal principal Truc “Curt” Tran. Tran is on the prosecution’s list of sentencing witnesses to testify to damage done to his reputation locally by McDonald’s, citing him as an interested party in a real estate transaction he said he had no knowledge of. It was one of the transactions cited by the prosecution as ways McDonald used, or attempted to use, to move money to her own, or other alleged co-conspirator’s, benefit.

Prosecution Point

In seeking a harsh sentence at the upper end of sentencing guideline recommendations the prosecution writes to the court: “For more than four years, Jennifer McDonald used the bank accounts and credit facilities of the Warren County Economic Development Authority (“EDA”) as her personal piggy bank, diverting public funds to purchase real estate and to pay her personal expenses. She falsified documents to fool the EDA’s Board of Directors, external auditors, and Warren County (“County”) and Front Royal (“Town”) government officials so she could continue and grow her scheme, reaping ever-growing payoffs. She employed elaborate ruses, including pretending to act as Truc Tran, to obscure her blatant theft of taxpayer dollars. Instead of acting for the general good of Warren County, McDonald pilfered the EDA’s bank accounts. In the end, her actions crippled the EDA. Due to Jennifer McDonald, a public agency designed to improve Warren County is now saddled with debt, and it is the taxpayers of Warren County who are now directly paying for her crimes.”

Defense Counterpoint

On the defense side, they question the cited guidelines origins and point to a lifetime of personal, financial, and professional consequences McDonald faces as a result of the 30 specific actions she was convicted of related to the FR-WC EDA financial scandal: “Jennifer McDonald submits this sentencing memorandum in support of her request for a total sentence of 72 months (48 months on Counts 1-13 and 19-34 plus 24 months on Count 18) followed by four years of supervised release. The sentence requested is sufficient but not greater than necessary to achieve the purposes of sentencing set forth in 18 U.S.C. § 3553(a)(2).

“The current guideline range provides no useful advice to the court, as it was not developed based on empirical data or national experience and it fails to satisfy any purpose of sentencing. It recommends a sentencing range that is far greater than necessary to punish Ms. McDonald because she poses an extraordinarily low risk of recidivism and has been destroyed personally, financially, and professionally because of her convictions. The collateral consequences already felt by Ms. McDonald vastly exceed that of an ordinary case and weigh in favor of a sentence of 72 months (6 years).”

Defense counsel, on behalf of their client, further describe McDonald’s roots here and the lifetime consequences of the actions she has been convicted of: “Front Royal is Jennifer McDonald’s hometown. She has lived in Front Royal for her entire life, except for the four years she went to college in North Carolina. Her family’s roots in Front Royal go back generations, and Jennifer has devoted her adult career to working for and on behalf of the people of Front Royal and Warren County. But now she is a pariah in the town she loves because of her offenses.”

Also submitted on McDonald’s behalf is a letter to Judge Elizabeth K. Dillon from a woman describing a 30-year friendship with McDonald that began when the woman moved to the area with her family when a high school junior. “I know that Jennifer is charged with a serious offense, but I would like to give you additional information about her for your consideration,” she begins.

She then traces the personal difficulty of making friends in a tightly knit, small-town community environment at that age, continuing, “However, Jennifer went out of her way to make me feel welcome and that I wasn’t going to spend my last two years as a high schooler friendless. Jennifer has been my friend since then,” she observes, adding, “When my father passed away suddenly, she was the first person I called and she came immediately to help me as I dealt with the sadness and grief. Jennifer is my best friend. Thank you for your consideration,” the woman says in conclusion of another side of defendant Jennifer McDonald not presented as evidence in her criminal trial.

How may Judge Dillon balance what she hears in support of prosecution and defense arguments and witness testimony about community and personal repercussions of the acts Jennifer McDonald was convicted of by a federal court jury on November 1st? Will we find out this Tuesday, April 9. Stay tuned.

After Tuesday, Jennifer McDonald will once again be sporting incarceration clothing. The question remains, for how long for the 47-year-old. An answer at some point between 6 and 24 years is pending according to pre-sentencing defense and prosecution filings.

On the morning of Tuesday, April 2, a press release from Warren County Director of Economic Development Joe Petty announced the failure of the previously announced Economic Development Authority (EDA, FR-WC EDA) acceptance of a deed buy-back offer of $350,000 by Jennifer McDonald and her husband, Samuel North, on their home property at 158 Faith Way. This reporter found that press release somewhat vague on exactly why the buy-back arrangement had failed. Readers will recall from our below-referenced story that the McDonald/North deed buy-back would have likely netted the EDA, and indirectly the County, at least $150,000 more than a resale effort after maintaining the earlier-announced property seizure.

The center of attention in the now-failed attempt to gain maximum profit for the EDA and County through a deed sell-back of the McDonald/North home property. Below, County Director of Economic Development and the County’s chief liaison to their now unilaterally overseen EDA, Joe Petty, addresses EDA budget variables at the March 26 supervisors meeting. Royal Examiner File Photos

The opening paragraph of the April 2 release offered a hint about unmet terms: “On March 22, 2024, the Front Royal-Warren County Economic Development Authority (EDA) Board of Directors held a regularly scheduled meeting during which it approved a settlement offer with Jennifer McDonald and Samuel North regarding property located at 158 Faith Way. McDonald and North had deeded title to the EDA on February 5, 2024, but not vacated, thus requiring ongoing significant and costly EDA and Warren County litigation. As the terms of that offer were not met by McDonald/North, on March 28, 2024, the EDA Board of Directors held a special meeting and voted to rescind its March 22nd resolution and withdraw the offer.”

“Not met” in what way we wondered, and decided to ask EDA Board Chairman Jd Walter. He replied to our emailed inquiry, explaining: “Almost immediately upon EDA approval, their (McDonald/North) counsel advised EDA counsel that they would not be able to meet the payment schedule. Subsequently, North did not withdraw his appeal of the order of possession, which was another term of the settlement offer. As such, the EDA considered the offer not accepted, thus voted to rescind its previous resolution and withdraw the offer.”

The EDA Board of Directors has been busy trying to attain maximum value from, initially, a property seizure, then a deed sell-back to EDA ‘financial scandal’ central figure Jennifer McDonald and her husband Samuel North’s home property. The latest announcement was not good for achieving maximum value, as the couple did not meet deed buy-back conditions.

So, what is the status of the McDonald-North home property at this point? “The EDA is awaiting a hearing in Circuit Court on the North appeal to the order of possession. Until that hearing is concluded, the EDA cannot take physical possession of the property,” Chairman Walter explained.

So, it appears that the EDA is back to taking possession of the property with all its negative financial implications regarding legal fees, liens filed against the property by third parties, an unpaid $250,000 mortgage equal to half the value of the property, not to mention closing costs on any prospective sale.

Well, based on their comments against the deed resale effort at the March 26 supervisors meeting it would seem that at least the five elected members of the Warren County Board of Supervisors are happy — though this reporter remains baffled as to exactly why.

(See LINKED Royal Examiner story: “EDA Plan to return McDonald-North Home Property Deed for $350,000 Cash Raises Ire of Supervisors – But What Do the Numbers say?”)

Below is the full April 2nd Press Release on the canceled Faith Way deed resale effort:

On March 22, 2024, the Front Royal-Warren County Economic Development Authority (EDA) Board of Directors held a regularly scheduled meeting during which it approved a settlement offer with Jennifer McDonald and Samuel North regarding property located at 158 Faith Way. McDonald and North had deeded title to the EDA on February 5, 2024, but not vacated, thus requiring ongoing significant and costly EDA and Warren County litigation. As the terms of that offer were not met by McDonald/North, on March 28, 2024, the EDA Board of Directors held a special meeting and voted to rescind its March 22nd resolution and withdraw the offer.

The proposed settlement terms were for McDonald/North to pay the EDA, by certified check a cash settlement of $350,000.00 and to withdraw North’s appeal of an order of possession of the Faith Way property granted to the EDA on March 6, 2024, by the Warren County Circuit Court. For these terms, the EDA would have deeded the property back to McDonald/North. In such a case, the multiple liens against the property by parties outside of the EDA would have remained the responsibility of McDonald/North, and not been a deduction from the proceeds to the EDA if the EDA sold the property.

As noted, the EDA received an order of possession for the 158 Faith Way property on March 6th. However, because North has appealed that decision the EDA cannot yet take physical possession of the property in order to sell it for fair market value. Upon sale of the property, the EDA will be required to satisfy the multiple liens against the property and cover closing costs.

The EDA takes very seriously the perspectives of the community as it relates to matters associated with McDonald and her actions as former Executive Director of the EDA. The EDA Board’s decision of March 22nd made sound financial sense. It was not accepted. The EDA wants to make clear because of their serious, negative impacts on the community, McDonald/North are not entitled to the positive consideration of being allowed to stay in their home when their size-able debt to the EDA, County and community remains unpaid.

The next regular monthly EDA Board meeting will be held on Friday, April 26, 2024, at 8:00 AM, at the Warren County Government Center.

EDA Plan to Return McDonald-North Home Property Deed for $350,000 Cash Raises Ire of Supervisors – But What Do the Numbers Say? – Royal Examiner

At its regular meeting of Monday, April 1, the Front Royal Economic Development Authority (FREDA), also now operating under the title Front Royal’s Business Development Board (BDB), continued to fine tune what Town Director of Community Development and Tourism “Lizi” Lewis called on March 18 the “working, living draft” of a survey of existing in-town businesses. Central to that fine tuning process was stressing the importance of encouraging the largest possible return rate of the survey designed to give the BDB/FREDA board a working outline of the best path forward in assisting existing businesses within the town limits to maximize their potential profitability and business models.

And reaching them with an understanding that a response to the survey is in their best interest was stressed Monday. That is because the content of that collective response will help Front Royal’s Business Development Board establish its priorities in making recommendations to the Town’s elected officials and involved departments on infrastructure and other priorities designed to make the Town as business friendly to the specific needs of existing businesses as it can be.

The Town’s Business Development Board and staff study wall projections for the draft of the Existing Business Survey. Royal Examiner Photos Roger Bianchini

And to that end the bulk of the noon meeting was propelled by Lewis’s presentation of her most recent draft of the survey drawn up in the wake of the March 18 meeting discussion and input from FREDA board members. As readers may recall, strategies developed two weeks earlier included not annoying busy business owners with too lengthy of a questionnaire requiring a great deal of detail, as well as utilizing the community’s two existing Rotary clubs and the Chamber of Commerce to reach the broadest possible number of existing business owners.

So, maintaining a balance in seeking both the above-referenced “quantitative” response, as well as the additional more detailed “qualitative” replies from those willing to spend a little more time — 20 minutes was estimated as an average response time to the existing draft — was a driving force in Monday’s discussion. And Lewis listened as Business Development Board members suggested combining some questions, dropping or relocating others. And Lewis explained that there would be additional space available for expanded responses for those desiring to elaborate on various responses on their existing business model or desired changes or fixes to existing Town infrastructure or workforce availability.

Town Director of Community Development and Tourism Lizi Lewis, standing, fields questions on optimum wording and number of questions to be included in the crucial coming Existing Businesses Survey.

Asked if the survey would be distributed by email, Lewis responded that it would be distributed multiple ways. A target time-frame of mid-April was cited for a final board-approved draft to be sent out to the existing in-town business community.

On one front related to existing or future business development, under “Old Business” regarding workforce development and employee recruitment, Lewis reported that a date of April 18 had been confirmed for the board’s visit to Laurel Ridge Community College in Middletown. However, due to Spring Break the board’s visit to the Blue Ridge Technical Center here in town has yet to be nailed down. April 15 had been targeted for that Blue Ridge Tech Center visit during discussion on March 18.

Near the meeting’s end, Town Manager Joe Waltz told the board that one result of the town council’s recent “Retreat” was establishment of a revenue stream for BDB/FREDA operations as a main priority of council.

The noon meeting adjourned at 1:28 p.m.

Click here to watch the video of the meeting.