Stonecrest mayor pleads guilty to federal fraud charges, Former mayor of Stonecrest, bookkeeper plead guilty to theft of COVID-19 relief funds, LIST: Schools across Georgia closing early ahead of possible severe weather, Gallery of storm damage across GA: Send us your photos, videos, Firefighters rescue Cherokee County man buried up to his neck in trench, Excel Church gives despite recovery from fire, Father and 9-month-old daughter reported missing in Clayton County, 26-year-old woman shot while driving in Decatur, Sign up for Atlanta News First Newsletters. Former Stonecrest Mayor Jason Lary is met by FOX 5 I-Team Reporter Randy Travis as he walks into the federal courthouse in Atlanta to enter a guilty plea to stealing CARES Act money on Jan.. Small businesses that applied for financial relief were asked on an application form if theyd be willing to give 25% of the grant to one of three companies to market their business. The mayor only votes in the event of a tie a rarity for a five-member City Council. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. Lary announced his resignation during a Zoom meeting on Tuesday. Stonecrest was required to spend the relief funds in accordance with the CARES Act. The church was then told to contribute $4,500 to REMC, which officials say the mayor used to pay his own property expenses and dues. Lary, 60, pleaded. One of the grants was to his church, which he awarded $150,000. Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. One of the grants was to his church, which he awarded $150,000. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. The. Credit: Photo courtesy of Boston College Athletics, Former Stonecrest mayor pleads guilty to federal fraud charges, Stonecrest passes on March election date to replace mayor after guilty fraud plea, Jahmyr Gibbs: Georgia Tech helped make me who I am today, Georgia Tech closes regular season with win over Boston College. Share sensitive information only on official, secure websites. The rescue team said the man was buried up to his neck in soil. Under the CARES Act, the federal government distributed COVID-19 relief funds to individual Americans, federal agencies, and state and local governments, including $125 million to DeKalb County. ", Former Stonecrest Mayor Jason Lary is met by FOX 5 I-Team Reporter Randy Travis as he walks into the federal courthouse in Atlanta to enter a guilty plea to stealing CARES Act money on Jan. 5, 2022. Copyright 2022 The Associated Press. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia This material may not be published, broadcast, rewritten, or redistributed. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Lock Former advisor to U.S. President Donald Trump, Roger Stone, leaves the E. Barrett Prettyman United States Courthouse after being found guilty of obstructing a congressional investigation into . It's been five years since a Carroll County man mysteriously disappeared from his home. 2023 FOX Television Stations. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. . By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. A bookkeeper and spouse of a former Stonecrest official accepted a plea deal in federal court Friday afternoon for participating in the same fraud scheme that brought down the city's founding mayor. ATLANTA - The former Mayor of Stonecrest pleaded guilty in federal court to stealing COVID-19 relief funds that were supposed to go to struggling businesses. Ignoring input from the official selection committee, from about November 2020, until about February 2021, Boone signed dozens of checks on behalf of MRPC, directing relief funds to individuals, businesses, churches, and non-profit organizations of Larys own choosing. Former Stonecrest mayor Jason Lary is asking for a lighter sentence than he faces after pleading guilty to allegedly stealing COVID relief funds awarded to the city during the pandemic. In one case, federal investigators alleged that Lary gave a church $150,000 under the condition that they would give a third of the money to a company called Real Estate Management Consultants LLC, which Lary controlled. The relief funds were designed to cover costs during the public health emergency. This station is part of Cox Media Group Television. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. Sentencing is scheduled for May 12. It is extremely disheartening when an elected official, someone sworn to protect the community they serve, violates that oath by stealing relief funds intended to aid their community, said Keri Farley, special agent in charge of FBI Atlanta. Instead of being a trustworthy steward of CARES Act funding, Clarence Boone and his co-conspirators schemed to misappropriate those funds to enrich themselves at the expense of those less fortunate. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. That decision will be made at a later date. This case was investigated by the Federal Bureau of Investigation. Federal authorities brought the mayor of Stonecrest to court alleging he stole hundreds of thousands of dollars in COVID-19 relief granted to the city. The city will hold a special election on May 24 to fill the rest of the mayor's term after the office was vacated by Jason Lary in January. On Wednesday, Channel 2s Tom Jones was in the courtroom as Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. InJuly 2020, the DeKalb County Board of Commissioners voted to disburse some of the relief funds to its municipalities, including a $6.2 million grant to Stonecrest. U.S. District Judge Thomas W. Thrash sentenced Stonecrest ex-mayor Jason Lary to 57 months in federal prison and ordered him to pay nearly $120,000 in restitution. his resignation as mayor of Stonecrest became official. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. U.S. District Judge Thomas W. Thrash sentenced Stonecrest ex-mayor Jason Lary to 57 months in federal prison and ordered him to pay nearly $120,000 in restitution. The resolution also adopted a funding plan for most of Stonecrests relief funds. Share sensitive information only on official, secure websites. ) or https:// means youve safely connected to the .gov website. STONECREST, Ga. - A bookkeeper hired by former Stonecrest mayor Jason Lary has pleaded guilty to conspiracy for her part in a scheme to steal COVID relief funds. Learn about careers at Cox Media Group. Lary announced his resignation to the city on a Zoom call Tuesday.. 2: Person of Interest. "If you don't know protocol, you better learn it with me," said Lary. Lary allegedly had the city improperly enter into a contract with a recently founded nonprofit, Municipal Resource Partners Corporation, to distribute the citys funds as a way to siphon money toward himself and cohorts. Lary did not disclose he controlled these companies. MATTIE'S CALL: A 9-month-old baby girl was reported missing from the Ellenwood area with a man police say was diagnosed with a mental illness. Main Office: Hardworking people like us, Will Morrell said. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. Lary faces up to 35 years in prison on all three counts. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. "Instead of providing aid to Stonecrests deserving citizens, Lary allegedly diverted funds for his own use, including to pay off his taxes and the mortgage on his lakefront home.". [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. Example video title will go here for this video, Should Be Alive Ep. Secure .gov websites use HTTPS He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. Stonecrest mayor appeared in federal court about misusing CARES fund Mayor Jason Lary and others in the city of Stonecrest is charged with mishandling 650,000 of CARES money meant for the citizens of Stonecrest. ATLANTA - Clarence Boone, the former Senior Economic Development Manager of Stonecrest, pleaded guilty to conspiring with his wife, Lania Boone, and the former Mayor of Stonecrest, Jason Lary, to steal pandemic relief funds intended to support small businesses in Stonecrest. Boone agreed to cooperate with government agents, provide records and testify at future trials. We are putting measures into place to prevent what we experienced during the meeting.. . The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. ATLANTA - The former Mayor of Stonecrest pleaded guilty in federal court to stealing COVID-19 relief funds that were supposed to go to struggling businesses. . Lary announced his resignation to the city on a Zoom call . Credit: Photo courtesy of Boston College Athletics, Former Stonecrest mayors accomplice pleads guilty to felony, Stonecrest councilwoman among candidates running to replace disgraced mayor, Jahmyr Gibbs: Georgia Tech helped make me who I am today, Georgia Tech closes regular season with win over Boston College. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Lary is due in court to answer for fraud allegations. He faces a max sentence of 35 years in prison. He then asked the church to give $50,000 back to one of the companies included in the scheme. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. In September 2020, Jason Lary, the former Mayor of Stonecrest, allocated $5 million of the relief funds to a Small Business Program which would disburse relief funds based on applications submitted by local businesses. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. However, federal authorities said Lary worked behind the scenes with an organization known as Municipal Resource Partners Corporation, Inc. ("MRPC") to disburse the relief funds. He also resigned as the citys mayor. Lania Boone, Larys co-conspirator, pleaded guilty to conspiracy on February 11, 2022. "CARES Act funds were intended to help people and businesses harmed by the pandemic, not to line the pockets of public officials entrusted to lead a community", said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. At least two candidates have publicly said theyll run to be the citys next mayor. He's accused of federal fraud related to COVID-19 relief funds. WSB-TV Channel 2 - Atlanta facebook feed(Opens a new window), WSB-TV Channel 2 - Atlanta twitter feed(Opens a new window), WSB-TV Channel 2 - Atlanta instagram feed(Opens a new window), WSB-TV Channel 2 - Atlanta youtube feed(Opens a new window), Reality star Honey Boo Boo was inside speeding Dodge Charger involved in chase with Ga. deputies, 49-year-old man shot multiple times during drug deal in northeast Atlanta, police say, A 17-year-old Gwinnett County girl thought she was taking Percocet; now shes dead, Man rescued after being accidentally buried alive in Cherokee County, Our capital city will die: Georgia senators reject proposal to separate Buckhead from Atlanta. His sentencing is set for May 2. Puede participar en nuestro ensayo sobre EPOC? Court documents show he was arraigned on the charges after relief funds expected to be allocated to the Stonecrest Cares Program and Small Business Program never made it to the city initiatives. A former health care executive, Lary was instrumental in convincing the General Assembly to create the city of Stonecrest along I-20 in south DeKalb County. SB 300, also called the Sentencing Reform Act, would rewrite part of Proposition 115, a 1990 ballot initiative that expanded the definition of first-degree murder to include murder committed . Last year the Northern District of Georgia US Attorney's office prosecuted at least 100 people involved in a total of $26 million in CARES Act fraud. Main Office: U.S. Attorney's Office, Northern District of Georgia, Former U.S. Former Stonecrest mayor pleads guilty to federal fraud charges, Former Stonecrest mayor resigns and plead guilty to federal fraud charges, Stonecrest mayor appeared in federal court about misusing CARES fund. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. The FBI and prosecutors found that $108,000 of relief funds were used to pay off the mortgage on a lakefront home owned by Lary, while another $7,600 was used to pay college tuition and rent for Boones son. A locked padlock This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. Stonecrest mayor charged in alleged misuse of CARES Act federal funds Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. If the special election for the mayors seat requires a runoff election, it will take place June 21. Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. Check back for details. The details of Boones plea deal are similar to the one Lary accepted. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". Lary is accused of stealing more than $650,000 in COVID-19 relief funds meant to help the people of Stonecrest who he was supposed to serve. Former Los Angeles City Councilmember Jose Huizar pleaded guilty Friday to charges of racketeering and tax evasion, admitting that he extorted at least $1.5 million in bribes from real estate . He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. Lary did not tell the businesses that he controlled these entities. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justices National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. This article originally appeared on the Decatur-Avondale Estates Patch, Reports: 3 children dead, 2 wounded in attack at Texas home, Kellyanne Conway, George Conway To Divorce After Decadeslong Marriage: Report, School punished teen girl for working out in sports bra in 100-degree Texas heat, ACLU says, U.S. court won't require FAA to make airplane seat size, spacing rules, 'Extremely dangerous': Spike in illegal crossings at Canada-Vermont border has feds sounding alarm, SoCal in for cool start to weekend, butlight showers make brief return. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. "The question of compassion to this Honorable Court is what is the appropriate sentenced for the conduct of this Defendant who, when confronted 'fessed up' and avoided costly indictment and made good faith efforts to cooperate with the Government," court documents read.