Former Stonecrest Mayor Jason Lary pleads guilty to federal - WAGA 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. This material may not be published, broadcast, rewritten, or redistributed. A Georgia Senator said he was unsurprised to hear about the indictment. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 2023 Cox Media Group. (Art by Richard Miller). Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. Now, the sheriff's office is hoping to reignite the search on this cold case. Stonecrest's former Senior Economic Development Manager pleads guilty A locked padlock Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. Richard B. Russell Federal Building 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 former mayor of Stonecrest who pleaded guilty to federal fraud charges is making a punishment request. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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 . The former mayor of Stonecrest and a bookkeeper who administered COVID-19 relief funds to the town pleaded guilty in federal court this month to charges related to the theft of pandemic relief funds. Atlanta, GA 30303-3309. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. This station is part of Cox Media Group Television. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 Stonecrest Mayor Pleads Guilty to Federal Fraud Charges A .gov website belongs to an official government organization in the United States. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Lary announced his resignation to the city on a Zoom call Tuesday. 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. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Stonecrest's Jason Lary COVID funds fraud case - 11Alive.com ", 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. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. In general, according to the Department of the Treasury, relief funds could only be used to cover costs that [were] necessary expenditures incurred due to the public health emergency. Those duties include acting as the figurehead of the city and appointing members to boards and committees. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. 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. 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 rescue team said the man was buried up to his neck in soil. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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. 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. 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. Former Stonecrest mayor sentenced to nearly 5 years in prison for 75 Ted Turner Dr. SW Former mayor of metro Atlanta city pleads guilty to fraud 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,. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Lary announced his resignation during a Zoom meeting on Tuesday. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. His sentencing hearing has been set for May 2. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. His sentencing is set for May 2. 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. 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 population is now 60,000 with a budget of more than $13 million. "I ask that you measure me by the whole story," Lary said. He explained he needs to take some time to work with doctors and care for himself. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID relief funds 585 views Feb 11, 2022 5 Dislike Share 11Alive 856K subscribers Jason Lary, the former mayor of. 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. 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 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.. The potential stakes are high for offenders who break new guidelines. "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.". The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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BREAKING: A bookkeeper - The Atlanta Journal-Constitution | Facebook For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. "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 wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. Suite 600 For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. 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. Jason Lary, whose resignation. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. His resignation went into effect Wednesday. I let us down, he told the court, according to the Atlanta Journal-Constitution. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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 did not disclose he controlled these companies. 2023 Cox Media Group. He has not been charged with a crime. 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. No stone was more important than the cornerstone because the integrity of the whole structure depended on the cornerstone containing . Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. 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. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. 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The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. 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. Example video title will go here for this video, Should Be Alive Ep. Lary is due in court to answer for fraud allegations. 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). Cobbles term is set to expire in 2026, so another special election will be necessary. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. Stonecrest Mayor Pleads Guilty to Federal Fraud Charges Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID A locked padlock Stonecrest was required to spend the relief funds in accordance with the CARES Act. U.S. Attorney's Office, Northern District of Georgia, Former U.S. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. Lary was also ordered to pay $120,000 in restitution as well. 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. Lary continued with the meeting after an IT tech fixed the problem. 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. 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. Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. The city will hold a special election to select a new mayor. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. 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. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 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. That money was supposed to go to people like us. 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. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. 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. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. The government said no marketing was ever done. Lary announced his resignation to the city on a Zoom call Tuesday.. 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. 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. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Former Stonecrest mayor's accomplice pleads guilty to felony - ajc For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 2: Person of Interest. Former Stonecrest mayor sentenced to nearly 5 years in prison for Lary resigned from his post as a mayor right before filing a guilty plea to the charges, citing health reasons and three battles with cancer. If the special election for the mayors seat requires a runoff election, it will take place June 21. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. If you have additional information, pictures, or video email newstipsatlanta@fox.com. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. He then asked the church to give $50,000 back to one of the companies included in the scheme. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. Stonecrest mayor pleads guilty to federal fraud charges - CBS 46 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. . "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. 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 pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022.
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