While the financial exploitation trial for two Augusta County businessmen is already underway, a defendant's additional arrest and allegations of sexual abuse have surfaced. WMRA's Randi B. Hagi reports.
Executives of the defunct Verona-based business Nexus – Michael Donovan and Richard Moore – appeared in court Wednesday for the true kick-off to their financial exploitation trial, which began with jury selection Tuesday. They each stand accused of six felonies for allegedly stealing a MetLife annuity payout totaling more than $400,000 from Zachary Cruz, one of the unrelated young men who lived with them in 2019.
Two separate sexual abuse allegations came to light today. First, Donovan was arrested after court adjourned Tuesday evening on a new charge of sodomy against a victim under the age of 13. If convicted, Donovan would face a mandatory life sentence.
The second allegation erupted during the trial proceedings.
The day began with opening statements. Prosecutors laid out the broad scheme they say Donovan and Moore executed, with the help of Nexus employees, to obtain Cruz's inheritance from his late mother – getting her death certificate, changing the address on Cruz's driver's license, opening a joint checking account with him, impersonating him on the phone with MetLife, and quickly transferring the funds to their own accounts and spending them on tax debt, credit card debt, and luxury clothes and car payments.
The defense argued that Cruz lived "an affluent life" with Donovan and Moore, who "spent hundreds of thousands of dollars on him."
Regarding investigations by local law enforcement, the Federal Bureau of Investigation, and Adult Protective Services into Cruz's living situation, defense attorney Caleb Routhier said "the most terrifying nine words in the English language are, 'I'm from the government and I'm here to help."
The commonwealth's first witness was retired FBI agent Jane Collins, who investigated the $400,000 transfer and other Nexus business practices. She described being stopped by security guards while trying to serve a subpoena to Cruz at home. The head of security described him as one of Donovan and Moore's sons.
During cross-examination, the defense asked Collins if Cruz was treated like a son. After a long pause, she said, "I have no idea," as Commonwealth's Attorney Tim Martin objected to the question. Judge Sean Workowski excused the jury while he discussed the objection with counsel.
Martin said that during a seven-hour interview with the Children's Advocacy Center, Cruz – who was 18 when he went to live with Donovan and Moore – disclosed "systematic sexual abuse" by the couple. "My actual belief as to why they kept him around was so they could sexually abuse him," he said. The defense agreed to drop their line of questioning.
As WMRA previously reported, search warrants show Moore was investigated in 2022 for allegedly sexually abusing another boy starting at age 16, although charges were never filed.
Another key witness on Tuesday was Timothy Shipe, the former Nexus employee who's also facing felony charges for his alleged participation in the scheme. On the stand, Shipe admitted to impersonating Cruz on the phone with MetLife employees, although he said Cruz was in the room with him during most of those calls.
The prosecution's evidence is expected to continue through Friday, with testimony from Cruz himself at some point. The defense is slated to begin calling their witnesses on Monday.
