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. 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. 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. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. The former Mayor of Stonecrest Jason Lary pleaded guilty in federal court to stealing COVID-19 relief funds that were supposed to go to struggling businesses. 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 more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 relief funds 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. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. Hardworking people like us, Will Morrell said. "I came back too early from my second round with cancer. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE, FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Lary was supposed to be in office until the end of 2023. 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 . Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 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. Cobbles term is set to expire in 2026, so another special election will be necessary. 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. (FOX 5). 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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. 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. He explained he needs to take some time to work with doctors and care for himself. He was ordered to pay restitution in the amount of $119,607.69. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. 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. ", 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. 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. 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. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. 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. 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 city will hold a special election to select a new mayor. He has not been charged with a crime. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. 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. 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. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. 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. 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. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. He then asked the church to give $50,000 back to one of the companies included in the scheme. The first is verse 22, "The stone rejected by the builders has become the corner-stone". 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. 75 Ted Turner Dr. SW 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. Have a question about Government Services? Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. 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. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). "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. 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The phrase is quoted by Jesus, who applies it to his mission of death and glory, after having told the . Those companies were all connected to Lary. 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. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. 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 placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Secure .gov websites use HTTPS 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. A .gov website belongs to an official government organization in the United States. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. "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. 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. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. His resignation went into effect Wednesday. 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. 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. All rights reserved. Lary announced his resignation to the city on a Zoom call Tuesday. I let us down, he told the court, according to the Atlanta Journal-Constitution. 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. She is scheduled to be sentenced on August 15, 2022. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. "If you don't know protocol, you better learn it with me," said Lary. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. The city's first mayor did not mention his legal troubles in a resignation speech. 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. Boone is scheduled to be sentenced on May 12. 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. Hopefully, he gets all of that, Morrell said. An official website of the United States government. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. Lary did not tell the businesses that he controlled these entities. They are purposely seeking to tear down everything I have worked to build in Stonecrest. 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. 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. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. "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.". This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. 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. 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.. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 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). 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. 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. 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. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 2023 Cox Media Group. Stonecrest was required to spend the relief funds in accordance with the CARES Act. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. The rescue team said the man was buried up to his neck in soil. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. Official websites use .gov U.S. Attorney's Office, Northern District of Georgia, Former U.S. Lary, who faces up to 35 years in prison, will be sentenced on May 2. 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 . accused of personally profiting from COVID-19 relief money. Sentencing is scheduled for May 12. Candidates must pay a $600 qualifying fee. Andrea V. Watson. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. But he was using it for his own personal needs.. 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.. Lary is free on bond. Lary, 60, pleaded. Secure .gov websites use HTTPS 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 did not tell Church 1 at this time that he actually controlled REMC. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. The. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. 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. She also agreed to pay restitution. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. If you have additional information, pictures, or video email newstipsatlanta@fox.com. Suite 600 2023 Cox Media Group. 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,. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. 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. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. Lary is due in court to answer for fraud allegations. Instead of being a trustworthy steward of CARES Act funding, Clarence Boone and his co-conspirators schemed to misappropriate those funds to enrich themselves at the expense of those less fortunate. Share sensitive information only on official, secure websites. The resolution also adopted a funding plan for most of Stonecrests relief funds. 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. A Georgia Senator said he was unsurprised to hear about the indictment. He also resigned as the citys mayor. No stone was more important than the cornerstone because the integrity of the whole structure depended on the cornerstone containing .