The 60-year-old Lary pleaded guilty in January to fraud and theft charges. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID This man's imprisonment shows why California's 'special circumstances Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 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. 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. This story is breaking. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. 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. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. His coconspirators previously pleaded guilty and received the following sentences: This case is being investigated by the Federal Bureau of Investigation and the DeKalb County District Attorneys Office. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. 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. ) or https:// means youve safely connected to the .gov website. 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. . "It's time for me to retire from politics and focus on my health," Lary said. 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. Hardworking people like us, Will Morrell said. 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. Larys last public address to his constituents delivered one last bombshell moment to his tenure. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. 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.. 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 phrase is quoted by Jesus, who applies it to his mission of death and glory, after having told the . For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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 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. 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 . She also agreed to pay restitution. 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. The last day Stonecrest residents can register to vote in time for the special election is April 25. Check back for details. ) or https:// means youve safely connected to the .gov website. 2023 FOX Television Stations. We have no response about the Mayors resignation, city officials said. 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 "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. 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. 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. 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. 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. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. 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. 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, 60, pleaded. Lary did not disclose he controlled these companies. Former Stonecrest mayor, bookkeeper plead guilty to theft of - MSN I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," 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. The resolution also adopted a funding plan for most of Stonecrests relief funds. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. Boone, who wrote the bulk of the checks using the stolen funds, agreed with that Friday in court. 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. 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. 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. The Stone that the Builders Rejected Became the Cornerstone? Library : Stone Rejected Has Become Cornerstone, The Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. His resignation went into effect Wednesday. We are putting measures into place to prevent what we experienced during the meeting.. Atlanta, GA 30303-3309. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. A .gov website belongs to an official government organization in the United States. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. Have a question about Government Services? Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. Andrea V. Watson. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. 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. "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. Former Stonecrest Mayor Jason Lary pleads guilty to federal - WAGA The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. This station is part of Cox Media Group Television. Main Office: 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. I let us down, he told the court, according to the Atlanta Journal-Constitution. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. He faces a max sentence of 35 years in prison. Former Stonecrest mayor's accomplice pleads guilty to felony - ajc Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Atlanta, GA 30303-3309. Roger Stone prosecutors quit after furor over Trump ally's sentence - CNBC The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . None the less, I will continue to serve the people of the great city of Stonecrest.". The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. 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 citys founding mayor. Former Stonecrest mayor pleads guilty to federal fraud charges The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. Father defends terrified family with machete after home intruder breaks through window in middle of night, Paolo Banchero scores 31 points, Magic beat Hornets 117-106. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and 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. 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. If the special election for the mayors seat requires a runoff election, it will take place June 21. In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. Lary faces up to 35 years in prison on all three counts. Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 A locked padlock Bookkeeper admits to role helping former Stonecrest mayor steal COVID "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.". 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. 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 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. His sentencing hearing has been set for May 2. Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. U.S. Attorney's Office, Northern District of Georgia, Former U.S. This station is part of Cox Media Group Television. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Lary is expected to be sentenced on July 13 at 10 a.m. ", 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. Richard B. Russell Federal Building Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. ATLANTA (AP) A suburban Atlanta mayor pleaded guilty to federal fraud charges a day after announcing his resignation from office. 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. 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. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. The government said no marketing was ever done. A locked padlock Police searching for suspect in northwestern Georgia elementary school burglary, Dunwoody Police catch man impersonating officer, Ex-officer charged in Susana Morales' death now charged in 2019 Snellville burglary, Frederick, MD tanker explosion leaves 1 dead; Shuts down part of US-15, Photos show rescue of Woodstock man 'buried up to his neck' in collapsed trench, Clayton County twin sisters make history rising the ranks in Georgia UPS facility, Prominent Roswell restaurant owner charged with sexual crimes involving 2 minors, Families intensify search for two men missing for more than a week, Disneyland banned Rebel Wilson over selfie, actress says, Police issue close to 100 traffic tickets at same Sandy Springs intersection, Georgia baby girl reported missing with man diagnosed with mental illness, police say, Sheriff's office continues five-year-long search for missing Carrollton man. 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 was also involved in the scheme and arraigned, records show. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. (Art by Richard Miller). They are purposely seeking to tear down everything I have worked to build in Stonecrest. The city's first mayor did not mention his legal troubles in a resignation speech. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. Up to $10,000 reward now being offered in finding missing Georgia family man in Baton Rouge, Woman shot near DeKalb gas station; police say person cut her off, pulled out handgun, Forecast | Bright sunshine returns for the weekend, Metro Atlanta, north Georgia hit with widespread damage after storms produce powerful winds, Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID relief funds, Ex-Stonecrest mayor pleads guilty to federal fraud charges, Stonecrest mayor, who is facing federal charges, says he will resign. He's accused of federal fraud related to COVID-19 relief funds. 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. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. "I did the best I could do with what we had in place.". Suite 600 Suite 600 In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia The city of Stonecrest could hold a special election as early as March to decide Larys replacement. His sentencing is set for May 2. Lary did not tell the businesses that he controlled these entities. The city will hold a special election to select a new mayor. Lary is due in court to answer for fraud allegations. Candidates must pay a $600 qualifying fee. Boone is scheduled to be sentenced on May 12. 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. Sentencing is scheduled for May 12. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. Former L.A. Councilmember Jose Huizar pleads guilty in corruption case Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. "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. A Georgia Senator said he was unsurprised to hear about the indictment. Stonecrest's former Senior Economic Development Manager pleads guilty This material may not be published, broadcast, rewritten, or redistributed. 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. 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,. 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. An official website of the United States government. "I came back too early from my second round with cancer. His sentencing is set for May 2. Secure .gov websites use HTTPS While I was out on cancer leave, they removed me from every committee I created, refused to pay my car allowance, while paying six figures to the finance director and $209,000 annually to the acting city manager (including a car allowance). The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. . The population is now 60,000 with a budget of more than $13 million. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. "If you don't know protocol, you better learn it with me," said Lary. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Stonecrest residents that Jones talked to were outraged. Secure .gov websites use HTTPS Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. He has not been charged with a crime. Stone clemency order shows Trump wiped prison sentence, supervised 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 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. 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. City leaders have not chosen a specific location for the special election to be held. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. The rescue team said the man was buried up to his neck in soil. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. That money was supposed to go to people like us. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia He then asked the church to give $50,000 back to one of the companies included in the scheme. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID 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. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. His resignation went into effect Wednesday. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Former Stonecrest Mayor Pleads Guilty To Federal Fraud Charges All rights reserved. Former mayor asks judge if he can serve sentence from home after If you have additional information, pictures, or video email newstipsatlanta@fox.com. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. 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. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. 100 people involved in a total of $26 million in CARES Act fraud. 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. He then asked the church to give $50,000 back to one of the companies included in the scheme. One of the grants was to his church, which he awarded $150,000. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 The potential stakes are high for offenders who break new guidelines. 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. The rescue team said the man was buried up to his neck in soil. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.