HARRISONBURG, Va. – Jennifer Rae McDonald, 45, of Front Royal, Virginia, has been sentenced to 14 years in federal prison for stealing more than $5.2 million in Economic Development Authority (EDA) funds.
McDonald, the former executive director of the EDA, was convicted in November 2023 of seven counts of wire fraud, six counts of bank fraud, sixteen counts of money laundering, and one count of aggravated identity theft.
“For more than four years, Jennifer McDonald used EDA funds as her personal piggy bank, diverting public funds to purchase real estate and to pay her personal expenses,” United States Attorney Christopher R. Kavanaugh said today.
McDonald’s scheme began in 2014 and continued until her arrest. She falsified documents to mislead the EDA’s Board of Directors, external auditors, and local government officials, allowing her to continue embezzling funds.
When confronted by law enforcement, McDonald drafted fake loan documents, encouraged others to lie before a grand jury, and fabricated a story alleging the fraud was part of a “secret settlement.” She also created fake documents to cover up her crimes.
The FBI and Virginia State Police investigated the case, with Assistant U.S. Attorneys Sean Welsh and Rachel Swartz, and Trial Attorney Andrea Broach, prosecuting the case for the United States.
According to court documents, McDonald used the embezzled funds to purchase real estate and pay for personal expenses, including over $2.4 million for her gambling habit, resulting in net losses of more than $750,000.
The total losses incurred by the EDA amount to $5,201,329.
RELATED: Ex-EDA Chief Sentenced to 14 Years for $5.2M Heist
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Key Facts
- State: Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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