Police make 2nd embezzlement arrest connected to Economic Development Authority

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FRONT ROYAL, Va. (WHSV) — UPDATE (June 25):

As investigation continues into embezzlement of funds at the Front Royal-Warren County Economic Development Authority, Virginia State Police have made another arrest.

Last month, 42-year-old Jennifer R. McDonald was charged with two counts of obtaining money by false pretenses and two counts of embezzlement of more than or equal to $500.

Police said she misused funds at the economic authority.

Now, police have also arrested 56-year-old Michelle Henry, of Warren County.

A Warren County special grand jury convened on June 21 and handed up two counts of embezzlement/larceny for offenses committed in 2014 and 2016 while she was with the Front Royal-Warren County Economic Development Authority.

She's being held without bond at the Rappahannock-Shenandoah-Warren Regional Jail.

The Virginia State Police Bureau of Criminal Investigation's Culpeper Field Office began investigating the EDA's finances in August 2018.

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ORIGINAL STORY (May 28):

A Front Royal woman was charged with multiple counts of embezzlement after a Virginia State Police investigation into funds at the Front Royal-Warren County Economic Development Authority.

According to a press release from Virginia State Police, troopers arrested 42-year-old Jennifer R. McDonald, of Front Royal, on Friday, May 24.

That day, a special grand jury handed up four felony indictments against her: two counts of obtaining money by false pretenses and two counts of embezzlement of more than or equal to $500.

After the indictments, she turned herself in.

Police say they began investigating in August 2018 at the request of officials with the town of Front Royal.

That investigation allegedly uncovered McDonald's misuse of funds from 2014 to 2018 while working with the Front Royal-Warren County Economic Development Authority (EDA).

McDonald, according to police, is being held without bond at the Rappahannock-Shenandoah-Warren Regional Jail.

The investigation remains ongoing.