Former Nexus CEO Michael Donovan Arrested on Child Sodomy Charge

Michael Donovan, the 49-year-old former CEO of Nexus Services, is being held without bond at the Middle River Regional Jail following an October 20 arrest. He faces a charge of forcible sodomy involving a child under the age of 13, according to a release from the Augusta County Sheriff’s Office.

The arrest is the result of an investigation involving a juvenile male victim who investigators allege was subjected to sexual abuse over several years. In a statement regarding the case, Augusta County Sheriff Donald Smith described the sexual abuse of a child as “one of the most serious crimes we investigate,” adding that the office’s responsibility is to “ensure that those responsible are held accountable.” Smith stated, “Your information could be critical in protecting another child from becoming a victim.”

Concurrent Legal Issues

The arrest occurs as Donovan faces other legal setbacks. On the Tuesday preceding the report of his arrest, an Augusta County jury convicted Donovan and Richard Moore, another former Nexus Services executive, on felony fraud charges. These convictions stem from the systematic theft of $426,000 from Zachary Cruz, the brother of the Parkland High School mass shooter.

History in Augusta County

Nexus Services relocated its corporate U.S. headquarters to the Mill Place Office Park in Augusta County after the Board of Supervisors announced in 2015 that the company would create 250 jobs and invest $22 million over three years. Frank Root, the owner and developer of Mill Place, described the company in a county release as “a great addition to Augusta County’s corporate community.”

Following this relocation, the company engaged in several conflicts with local officials. Donovan and Moore targeted Commonwealth’s Attorney Tim Martin and Sheriff Smith with lawsuits, protests and political tricks. Nexus Services filed a federal lawsuit against Sheriff Smith in 2016, which was later dropped, and a PAC formed by a Nexus Services VP attempted to link Smith to a man convicted of labor trafficking during Smith’s 2019 re-election campaign. Protests at the Sheriff's Office involving the company in 2021 led to 19 arrests for disorderly conduct and noise ordinance violations, though most charges were eventually dismissed.

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Corporate Litigation

Beyond the local criminal cases, Nexus Services was the subject of a joint state-federal lawsuit resulting in an $811 million judgment. That litigation found the company used misleading contracts, primarily in English for clients who did not speak the language, to trick consumers into believing monthly fees were paying down their bonds.