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. . The Atlanta Journal-Constitution was the only news outlet at the hearing. Attorneys for the Northern District of Georgia, Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 relief funds, https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form, CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxes, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits, Former Mayor of Stonecrest Sentenced To Prison For Stealing COVID 19 Relief Funds. The mayor only votes in the event of a tie a rarity for a five-member City Council. This material may not be published, broadcast, rewritten, or redistributed. 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. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Former Stonecrest Mayor Jason Lary and his former bookkeeper have pleaded guilty to charges related to allegedly stealing COVID relief funds awarded to Stonecrest during the pandemic,. "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. ", 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. ATLANTA (AP) A former Georgia mayor will serve nearly five years in federal prison after stealing nearly $925,000 in COVID-19 relief funds that his city handed out. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. "Larys guilty plea was the first in righting the wrongs committed against the people of Stonecrest, who were wrongfully deprived of hundreds of thousands of dollars intended to provide COVID-19 relief," said U.S. Attorney Kurt R. Erskine. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. 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. Lock ATLANTA Former Stonecrest Mayor Jason Lary was sentenced to 57 months in prison Wednesday after he stole more than $650,000 in COVID-19 relief funds meant for the recovery of businesses,. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Shes the wife of Clarence Boone, the citys former economic development director who was fired as a result of investigations in the citys relief program. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). 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. Main Office: 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. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. Those duties include acting as the figurehead of the city and appointing members to boards and committees. Jason Lary received a sentence of four years and nine months in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $119,607.69. . "Mr. Lary has serious health challenges and at age 60 the Defendant finds himself facing a legacy of criminal history that is and was 'money motivated,' and not violence or physical harm to others, nor drug related," his legal team writes in a sentencing memorandum filed with the court. 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 . Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. Briefs: 11Alives news director goes to Gray; Honey Boo Boos boyfriend arrested; Marlon Woman accused of killing ill husband released from jail, Class 7A: Semifinal coverage from Georgia State, DeKalb volunteers to plant 150 trees during March, Decatur hosts second community meeting on March 2, Atlantas Carter Center preps for future without founder, Photography club captures hope during pandemic, March food and drink events to check out in metro Atlanta. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. "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. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. The resolution also adopted a funding plan for most of Stonecrests relief funds. Attorneys for the Northern District of Georgia, Stonecrests former Senior Economic Development Manager pleads guilty to theft of COVID-19 relief funds, https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form, CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxes, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits, Stonecrests Former Senior Economic Development Manager Pleads Guilty To Theft of COVID 19 Relief Funds. Now, the sheriff's office is hoping to reignite the search on this cold case. "I came back too early from my second round with cancer. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. . Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. 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. Lary did not tell Church 1 at this time that he actually controlled REMC. 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. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Share sensitive information only on official, secure websites. Federal prosecutors said that in addition to paying off personal debt, Lary conducted a scheme where he asked small businesses and churches to whom he allocated grants to give 25% of the money to companies connected to himself and co-conspirators. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. Richard B. Russell Federal Building Atlanta, GA 30303-3309. Lary is expected to be sentenced on July 13 at 10 a.m. Lania Boone received a sentence of six months and one day in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $7,657.47. 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. As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. 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. Inpractice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. 2023 FOX Television Stations. A lock ( DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. This material may not be published, broadcast, rewritten, or redistributed. Boone is scheduled to be sentenced on May 12. Larys last public address to his constituents delivered one last bombshell moment to his tenure. Lary agreed that he diverted at least $650,000 in relief money by requiring Stonecrest churches and businesses to kick back a portion of their grant money to companies he controlled. Clarence Boone, 60, of Decatur, Georgia, pleaded guilty to conspiracy to commit federal program theft and is scheduled to be sentenced on March 13, 2023. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. 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. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. For example, Lary presented a check for $150,000 in relief funds to Church 1, on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (REMC). Jason Lary, whose resignation. 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. According to U.S. Attorney Buchanan, the charges and other information presented in court: In March 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law in response to the economic fallout of the COVID-19 pandemic. All rights reserved. The potential stakes are high for offenders who break new guidelines. The City Council voted Monday to set the election date, determine qualifying information and formally ask ask the DeKalb County Board of Registrations and Elections to run the election. 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Secure .gov websites use HTTPS That decision will be made at a later date. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". The application included the question, are you willing to allocate 25% of your grant to marketing your business? Hundreds of businesses applied for relief funds, but most of the applicants were rejected. That money was supposed to go to people like us. 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. He then asked the church to give $50,000 back to one of the companies included in the scheme. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 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The former Mayor of Stonecrest Jason Lary pleaded guilty in federal court to stealing COVID-19 relief funds that were supposed to go to struggling businesses. With Lary now 60 years old and with no criminal history, his legal team requested that house arrest, community service and statutory required supervision be considered for his sentence. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. Instead Lary worked behind the scenes to form a private company, Municipal Resource Partners Corporation, Inc. (MRPC), recruit its CEO, open its bank accounts, and ensure that Lania Boone, his convicted co-conspirator, would be hired as MRPCs bookkeeper. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. 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. The rescue team said the man was buried up to his neck in soil. 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. Lary announced his resignation to the city on a Zoom call . On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. A lock ( 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. His resignation went into effect Wednesday. Suite 600 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. A Georgia Senator said he was unsurprised to hear about the indictment. It's been five years since a Carroll County man mysteriously disappeared from his home. Stonecrest was required to spend the relief funds in accordance with the CARES Act. Lary announced his resignation during a Zoom meeting on Tuesday. 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. While I was out on cancer leave, they removed me from every committee I created, refused to pay my car allowance, while paying six figures to the finance director and $209,000 annually to the acting city manager (including a car allowance). The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. Have a question about Government Services? Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. Police searching for suspect in northwestern Georgia elementary school burglary, Dunwoody Police catch man impersonating officer, Ex-officer charged in Susana Morales' death now charged in 2019 Snellville burglary, Frederick, MD tanker explosion leaves 1 dead; Shuts down part of US-15, Photos show rescue of Woodstock man 'buried up to his neck' in collapsed trench, Clayton County twin sisters make history rising the ranks in Georgia UPS facility, Prominent Roswell restaurant owner charged with sexual crimes involving 2 minors, Families intensify search for two men missing for more than a week, Disneyland banned Rebel Wilson over selfie, actress says, Police issue close to 100 traffic tickets at same Sandy Springs intersection, Georgia baby girl reported missing with man diagnosed with mental illness, police say, Sheriff's office continues five-year-long search for missing Carrollton man. Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. A .gov website belongs to an official government organization in the United States. 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. He has not been charged with a crime. 75 Ted Turner Dr. SW In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. And while Lary falsely stated that the $50,000 would be used to assist with home repairs for people who could not afford them due to COVID-19, in reality he used the money for his own purposes, including to pay off his outstanding federal, state, and local tax liabilities. This station is part of Cox Media Group Television. A locked padlock The. 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 January 2021, Boone used her access to one of MRPCs bank accounts to wire transfer approximately $108,000 of relief funds to a mortgage servicing company. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. Main Office: ) or https:// means youve safely connected to the .gov website. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. We have no response about the Mayors resignation, city officials said. Check back for details. The Justice Department on Monday released President Trump's clemency order for longtime GOP operative Roger Stone showing the president not only wiped away Stone's prison sentence but also a . Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . Atlanta, GA 30303-3309. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia
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