", 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. Residents will soon get a chance to elect a new mayor in Stonecrest. 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. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. 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. Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. A lock ( 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,. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Lary announced his resignation to the city on a Zoom call Tuesday.. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. 75 Ted Turner Dr. SW The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 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. This case was investigated by the Federal Bureau of Investigation. 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. He faces a max sentence of 35 years in prison. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. The last day Stonecrest residents can register to vote in time for the special election is April 25. Lary was supposed to be in office until the end of 2023. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. 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 and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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. Lary did not disclose he controlled these companies. Lary continued with the meeting after an IT tech fixed the problem. 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. 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. Check back for details. Boone, who wrote the bulk of the checks using the stolen funds, agreed with that Friday in court. 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. "I did the best I could do with what we had in place.". Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. Secure .gov websites use HTTPS 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. 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. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. Lock City leaders have not chosen a specific location for the special election to be held. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. 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. 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. [SIGN UP: WSB-TV Daily Headlines Newsletter]. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Court documents show he was arraigned on the charges after relief funds expected to be allocated to the Stonecrest Cares Program and Small Business Program never made it to the city initiatives. Those duties include acting as the figurehead of the city and appointing members to boards and committees. It's been five years since a Carroll County man mysteriously disappeared from his home. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. Lary was also ordered to pay $120,000 in restitution as well. 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. 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. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. He also settled income taxes he owed going back to 2015. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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 judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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. A bookkeeper was also involved in the scheme and arraigned, records show. ATLANTA - After spending nearly a year proclaiming his innocence, former Stonecrest mayor Jason Lary admitted masterminding a scheme to steal COVID relief funds. 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. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. In another case, Lary allegedly gave a church $50,000. 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 . Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. The rescue team said the man was buried up to his neck in soil. Lary is free on bond. A locked padlock 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. 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. Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. 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. 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. Boone agreed to cooperate with government agents, provide records and testify at future trials. One of the grants was to his church, which he awarded $150,000. Both Boone and Lary remain out of jail on bond until their sentencing hearings. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. 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. 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. ) or https:// means youve safely connected to the .gov website. 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. 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. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. 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 Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. His sentencing is set for May 2. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. 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. 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. 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. Official websites use .gov "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.". As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. Lary, 60, pleaded. 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,. 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. 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. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. "He certainly, as alleged by the Grand Jury, used his position as mayor of Stonecrest to divert those funds and used his influence and connections," Erskine said. 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. 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 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 three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. 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. 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. 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. This material may not be published, broadcast, rewritten, or redistributed. 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 details of Boones plea deal are similar to the one Lary accepted. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". 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. He has not been charged with a crime. Those companies were all connected to Lary. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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.. None the less, I will continue to serve the people of the great city of Stonecrest.". Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. "It's time for me to retire from politics and focus on my health," Lary said. 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 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. 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. 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. 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. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. She also agreed to pay restitution. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 2022-02-12 - By Zachary Hansen zachary.hansen@ajc.com. His resignation went into effect Wednesday. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. He said he had surgery in late December 2020. ) or https:// means youve safely connected to the .gov website. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. A .gov website belongs to an official government organization in the United States. The relief funds were designed to cover costs during the public health emergency. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. He explained he needs to take some time to work with doctors and care for himself. Stonecrest residents that Jones talked to were outraged. It's been five years since a Carroll County man mysteriously disappeared from his home. 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. 2023 Cox Media Group. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. "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. STONECREST, Ga. Editor's note: The video above is from a previous story. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer.
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