2022-02-12 - By Zachary Hansen zachary.hansen@ajc.com. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. 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. 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,. As mayor, he took control of who received $6.2 million in CARES Act money. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". 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.. Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. The city will hold a special election to select a new mayor. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. He has not been charged with a crime. Learn about careers at Cox Media Group. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. 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. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. 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. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. 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. 2023 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Main Office: "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE, FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. "I ask that you measure me by the whole story," Lary said. 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. Now, the sheriff's office is hoping to reignite the search on this cold case. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. 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. February 21, 2022 Chris Butler. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. Share sensitive information only on official, secure websites. 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. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. 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. An official website of the United States government. . ATLANTA - Jason Lary, the former mayor of Stonecrest, and Lania Boone, a bookkeeper for the entity that administered COVID-19 relief funds awarded to Stonecrest, have pleaded guilty to. Have a question about Government Services? accused of personally profiting from COVID-19 relief money. 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. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 A .gov website belongs to an official government organization in the United States. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. City leaders have not chosen a specific location for the special election to be held. Lary won the mayors race twice, the citys only mayor in its brief history. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. ) or https:// means youve safely connected to the .gov website. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). 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. In another case, Lary allegedly gave a church $50,000. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. That decision will be made at a later date. 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. One of the grants was to his church, which he awarded $150,000. 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. 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 . 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. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. 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. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. "I came back too early from my second round with cancer. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. The potential stakes are high for offenders who break new guidelines. A bookkeeper was also involved in the scheme and arraigned, records show. 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. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. 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. Jason Lary, whose resignation. Stonecrest was required to spend the relief funds in accordance with the CARES Act. 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, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . We are putting measures into place to prevent what we experienced during the meeting.. The rescue team said the man was buried up to his neck in soil. 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. He also resigned as the citys mayor. 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. He said he had surgery in late December 2020. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. A Georgia Senator said he was unsurprised to hear about the indictment. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 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. The government said no marketing was ever done. 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. 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). "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. "I did the best I could do with what we had in place.". 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. 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. Lary, 60, pleaded. 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. 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Editor's note: The video above is from a previous story. 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 city of Stonecrest could hold a special election as early as March to decide Larys replacement. All rights reserved. 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 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. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Sentencing is scheduled for May 12. A locked padlock But he was using it for his own personal needs.. In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. He was ordered to pay restitution in the amount of $119,607.69. We have no response about the Mayors resignation, city officials said. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. The Atlanta Journal-Constitution was the only news outlet at the hearing. 2023 Cox Media Group. His sentencing hearing has been set for May 2. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. A locked padlock Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. That money was supposed to go to people like us. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. "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. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. "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.". Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. U.S. Attorney's Office, Northern District of Georgia, Former U.S. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. 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. Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. 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. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. Check back for details. His legal team is citing his health and lack of criminal record should merit a lighter sentence. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. 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. Lary, who faces up to 35 years in prison, will be sentenced on May 2. 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. Lary is free on bond. Have a question about Government Services? He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. A .gov website belongs to an official government organization in the United States. 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. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Atlanta, GA 30303-3309. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. The. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. "It's time for me to retire from politics and focus on my health," Lary said. "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. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. Boone, who wrote the bulk of the checks using the stolen funds, agreed with that Friday in court. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. 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. He faces a max sentence of 35 years in prison. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. "If you don't know protocol, you better learn it with me," said Lary. 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 . Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. His plea came the same morning his resignation as mayor of Stonecrest became official. This material may not be published, broadcast, rewritten, or redistributed. The mayor only votes in the event of a tie a rarity for a five-member City Council. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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 last day Stonecrest residents can register to vote in time for the special election is April 25. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. 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. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. Lary is due in court to answer for fraud allegations. None the less, I will continue to serve the people of the great city of Stonecrest.". He explained he needs to take some time to work with doctors and care for himself. 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The 45-minute Zoom call in which he announced his resignation was hacked and briefly displayed a video game and then a brief snippet of pornography. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. 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. One of the grants was to his church, which he awarded $150,000. Candidates must pay a $600 qualifying fee. 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. 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. 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, churches and the people of the city. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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.

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