He explained he needs to take some time to work with doctors and care for himself. "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. 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. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. The qualification period will take place roughly a month before the election date, and it must end 25 days before the election takes place. 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. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia Lock The first is verse 22, "The stone rejected by the builders has become the corner-stone". Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. His plea came the same morning his resignation as mayor of Stonecrest became official. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. February 21, 2022 Chris Butler. He was ordered to pay restitution in the amount of $119,607.69. Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. 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. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. 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 . "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". Suite 600 2: Person of Interest. 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). In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. The resolution also adopted a funding plan for most of Stonecrests relief funds. Puede participar en nuestro ensayo sobre EPOC? 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 . Former Stonecrest mayor pleads guilty to federal fraud charges, Former Stonecrest mayor resigns and plead guilty to federal fraud charges, 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), more than $650,000 in COVID-19 relief funds, 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 hearing has been set for May 2. City leaders have not chosen a specific location for the special election to be held. 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 wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. Candidates must pay a $600 qualifying fee. 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. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Lary did not tell Church 1 at this time that he actually controlled REMC. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. If you have additional information, pictures, or video email newstipsatlanta@fox.com. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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,. 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 . 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. Check back for details. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. 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. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. (FOX 5). This material may not be published, broadcast, rewritten, or redistributed. 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. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. The mayor only votes in the event of a tie a rarity for a five-member City Council. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. An official website of the United States government. It's been five years since a Carroll County man mysteriously disappeared from his home. At least two candidates have publicly said theyll run to be the citys next mayor. 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. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 2023 Cox Media Group. 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. 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. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this.". [SIGN UP: WSB-TV Daily Headlines Newsletter]. Have a question about Government Services? That money was supposed to go to people like us. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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. Secure .gov websites use HTTPS He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Second, Lary told churches that received relief funds from the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary. Lary was also ordered to pay $120,000 in restitution as well. He then asked the church to give $50,000 back to one of the companies included in the scheme. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. I let us down, he told the court, according to the Atlanta Journal-Constitution. As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. 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. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. 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. 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. 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. 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. A locked padlock Both Boone and Lary remain out of jail on bond until their sentencing hearings. 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. 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. 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. 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. "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.". The image comes from the ancient quarries where highly-trained stonemasons carefully chose the stones used in construction. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. Learn about careers at Cox Media Group. 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. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. 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. The about-face came in. Lary is expected to be sentenced on July 13 at 10 a.m. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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. ) or https:// means youve safely connected to the .gov website. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Lock 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. Main Office: Larys last public address to his constituents delivered one last bombshell moment to his tenure. Learn about careers at Cox Media Group. The population is now 60,000 with a budget of more than $13 million. 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. All rights reserved. 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. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. Inpractice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. This station is part of Cox Media Group Television. His legal team is citing his health and lack of criminal record should merit a lighter sentence. 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. 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. Jason Lary, whose resignation. 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. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia 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. A lock ( 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. We are putting measures into place to prevent what we experienced during the meeting.. Lary is free on bond. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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. Example video title will go here for this video, Should Be Alive Ep. 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. 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, said U.S. Attorney Ryan K. Buchanan. 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. 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. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. Those companies were all connected to Lary. 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. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Lary is due in court to answer for fraud allegations. Lary faces up to 35 years in prison on all three counts. 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. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. She also agreed to pay restitution. 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. That decision will be made at a later date. 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. District 3 Councilwoman Jazzmin Cobble announced last week she will resign her post once she qualifies to run for mayor, and former District 5 councilwoman Diane Adoma told The Atlanta Journal-Constitution she will run as well. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. His sentencing is set for May 2. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. The FBI will continue to work with our local, state, and federal partners to ensure stolen relief funds are returned to the public, and individuals involved in this type of fraud are prosecuted to the fullest extent of the law.. Lary announced his resignation to the city on a Zoom call . 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. None the less, I will continue to serve the people of the great city of Stonecrest.". 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. 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. his resignation as mayor of Stonecrest became official. Hardworking people like us, Will Morrell said. 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. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. He said he had surgery in late December 2020. Atlanta, GA 30303-3309. STONECREST, Ga. Editor's note: The video above is from a previous story. Those duties include acting as the figurehead of the city and appointing members to boards and committees. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. Boone and the former Mayor conspired to fraudulently line each others pockets with relief funds that were desperately needed by struggling businesses in Stonecrest, said U.S. Attorney Ryan K. Buchanan. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). 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. "It's time for me to retire from politics and focus on my health," Lary said. The potential stakes are high for offenders who break new guidelines. 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.
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