former stonecrest mayor's accomplice pleads guilty to felony

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. "The FBI will do everything in our power to make sure stolen funds are returned to the public, and individuals involved in this type of criminal behavior are prosecuted to the fullest extent of the law.". Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. Sentencing is scheduled for May 12. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. 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. BREAKING: 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. Lary announced his resignation to the city on a Zoom call Tuesday.. The rescue team said the man was buried up to his neck in soil. 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. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. ATLANTA - After spending nearly a year proclaiming his innocence, former Stonecrest mayor Jason Lary admitted masterminding a scheme to steal COVID relief funds. 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, officials said. Example video title will go here for this video, Should Be Alive Ep. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. "I ask that you measure me by the whole story," Lary said. Richard B. Russell Federal Building Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. The city will hold a special election to select a new mayor. We have no response about the Mayors resignation, city officials said. "I came back too early from my second round with cancer. 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. Later, in March 2021, after learning of an investigation into the citys handling of relief funds and knowing that the business had never filed paperwork to support the grant, Clarence Boone attempted to conceal the scheme by directing the businesss owner to submit an application that contained false statements, even though the Small Business Program had already ceased operations. Now, the sheriff's office is hoping to reignite the search on this cold case. Boone is scheduled to be sentenced on May 12. (FOX 5). ) or https:// means youve safely connected to the .gov website. Lary betrayed the trust placed in him by the citizens of Stonecrest by stealing the very funds meant to help his constituents weather the COVID-19 pandemic, U.S. Attorney Ryan Buchanan said. Lary did not tell the businesses that he controlled these entities. Lary, who faces up to 35 years in prison, will be sentenced on May 2. 100 people involved in a total of $26 million in CARES Act fraud. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. Cobbles term is set to expire in 2026, so another special election will be necessary. That money was supposed to go to people like us. A lock ( The DeKalb County District Attorneys Office will continue to work with its law enforcement partners to bring these bad actors to justice, said DeKalb County District Attorney Sherry Boston. Lary is expected to be sentenced on July 13 at 10 a.m. He's accused of federal fraud related to COVID-19 relief funds. We are putting measures into place to prevent what we experienced during the meeting.. A .gov website belongs to an official government organization in the United States. Stonecrest received $6.2 million in Coronavirus Aid, Relief and Economic Security (CARES) Act funds, and the two are accused of taking some of the funds for themselves. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes., 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. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. Jason Lary was accused of stealing more than. The city's first mayor did not mention his legal troubles in a resignation speech. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. He also settled income taxes he owed going back to 2015. accused of personally profiting from COVID-19 relief money. 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Thrash sentenced Stonecrest ex-mayor Jason Lary to 57 months in federal prison and ordered him to pay nearly $120,000 in restitution. 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. . Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. Lary, 60, pleaded. All rights reserved. Atlanta, GA 30303-3309. Hopefully, he gets all of that, Morrell said. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. 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. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. 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. Lary announced his resignation to the city on a Zoom call Tuesday. Lary faces up to 35 years in prison on all three counts. Lary was supposed to be in office until the end of 2023. Lary is free on bond. The resolution also adopted a funding plan for most of Stonecrests relief funds. 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. 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 issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. They are purposely seeking to tear down everything I have worked to build in Stonecrest. Lary won the mayors race twice, the citys only mayor in its brief history. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. At least two candidates have publicly said theyll run to be the citys next mayor. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. Lary is due in court to answer for fraud allegations. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. Father defends terrified family with machete after home intruder breaks through window in middle of night, Paolo Banchero scores 31 points, Magic beat Hornets 117-106. Check back for details. Larys last public address to his constituents delivered one last bombshell moment to his tenure. Jason Lary, whose resignation went into effect at 10 a.m. Wednesday, pleaded guilty to three counts involving wire fraud, theft of government funds and conspiracy. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Have a question about Government Services? Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 As another example, Lary presented a check from MRPC for $50,000 to Church 2. Later, a person acting on Larys behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. In another case, Lary allegedly gave a church $50,000. 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. ) or https:// means youve safely connected to the .gov website. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. Lania Boone, Larys co-conspirator, pleaded guilty to conspiracy on February 11, 2022. 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. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 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. Stonecrest Mayor Jason Lary on Wednesday pleaded guilty to wire fraud, federal program theft and conspiracy to commit federal program theft, The Atlanta Journal-Constitution reported. 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. Jason Lary, 60, of Stonecrest, Georgia, has been sentenced to four years and nine months in prison to be followed by three years of supervised release. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. 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. Earlier this year, Lary pleaded guilty to one count each of wire fraud, conspiracy and federal program theft for his role in stealing more than $650,000. 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. One of the grants was to his church, which he awarded $150,000. 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 . This case was investigated by the Federal Bureau of Investigation. ATLANTA Jason Lary, the former Mayor of the City of Stonecrest, has been sentenced for using his elected office to steal hundreds of thousands of dollars in federal COVID-19 relief funds allocated to the city. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. Lock The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. If the special election for the mayors seat requires a runoff election, it will take place June 21. Andrea V. Watson. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. STONECREST CITY COUNCIL VOTES TO CENSURE MAYOR AFTER IMMATURE PUBLIC REMARKS, "Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief," said Acting U.S. Attorney Kurt R. Erskine. Lary did not disclose he controlled these companies. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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. and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020. Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures. On October 28, 2020, for example, Clarence Boone and Lary circumvented the application process and directed more than $50,000 to a business that they knew was not conducting any legitimate operations, and Lania Boone ultimately wrote the check to disburse the funds. 2023 Cox Media Group. Later in December 2020 and January 2021, Clarence Boone coordinated with Lary and Lania Boone to use $108,155.52 of relief funds to pay off the mortgage on Larys lakefront home in Macon, Georgia, and used more than $7,600 of relief funds to pay college tuition, a meal plan, books, and rent for Clarence Boones son. That decision will be made at a later date. His legal team is citing his health and lack of criminal record should merit a lighter sentence. A Georgia Senator said he was unsurprised to hear about the indictment. 2023 Cox Media Group. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. We will continue to uncover and prosecute those who exploit government positions and COVID relief programs to fuel their own greed., 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 Keri Farley, Special Agent in Charge of FBI Atlanta. The city will hold a special election on May 24 to fill the rest of the mayors term after the office was vacated by Jason Lary in January. Main Office: He then asked the church to give $50,000 back to one of the companies included in the scheme. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. 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. He also resigned as the citys mayor. Now, the sheriff's office is hoping to reignite the search on this cold case. His sentencing is set for May 2. 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. A former suburban Atlanta mayor was sentenced to nearly five years in prison on Wednesday for masterminding a scheme to steal nearly $925,000 of the $6.2 million in COVID-19 relief funds that.