Attorneys for the Northern District of Georgia, Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 relief funds, https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form, CEO of Atlanta engineering firm pleads guilty to failing to pay payroll taxes, Arizona man pleads guilty to extorting Georgia Tech, Georgia woman charged with stealing over $450,000 in government and retirement benefits, Former Mayor of Stonecrest Sentenced To Prison For Stealing COVID 19 Relief Funds. Hopefully, he gets all of that, Morrell said. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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. A .gov website belongs to an official government organization in the United States. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia This station is part of Cox Media Group Television. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Lary faces up to 35 years in prison on all three counts. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The last day Stonecrest residents can register to vote in time for the special election is April 25. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. 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. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. Both Boone and Lary remain out of jail on bond until their sentencing hearings. ATLANTA - Clarence Boone, the former Senior Economic Development Manager of Stonecrest, pleaded guilty to conspiring with his wife, Lania Boone, and the former Mayor of Stonecrest, Jason Lary, to steal pandemic relief funds intended to support small businesses in Stonecrest. Stonecrest residents that Jones talked to were outraged. 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, who faces up to 35 years in prison, will be sentenced on May 2. He explained he needs to take some time to work with doctors and care for himself. He then asked the church to give $50,000 back to one of the companies included in the scheme. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 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He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. 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. If the special election for the mayors seat requires a runoff election, it will take place June 21. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing 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.". This material may not be published, broadcast, rewritten, or redistributed. She also agreed to pay restitution. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. 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. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. 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 also settled income taxes he owed going back to 2015. Ignoring input from the official selection committee, from about November 2020, until about February 2021, Boone signed dozens of checks on behalf of MRPC, directing relief funds to individuals, businesses, churches, and non-profit organizations of Larys own choosing. 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. . For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. 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,. Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. His plea came the same morning his resignation as mayor of Stonecrest became official. 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 allegedly had the city improperly enter into a contract with a recently founded nonprofit, Municipal Resource Partners Corporation, to distribute the citys funds as a way to siphon money toward himself and cohorts. "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. Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. "I ask that you measure me by the whole story," Lary said. 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. 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. 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. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Now, the sheriff's office is hoping to reignite the search on this cold case. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. Lary is due in court to answer for fraud allegations. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Lary announced his resignation to the city on a Zoom call Tuesday.. The potential stakes are high for offenders who break new guidelines. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. 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. Inpractice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. Lary did not tell the businesses that he controlled these entities. ) or https:// means youve safely connected to the .gov website. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. Suite 600 We are putting measures into place to prevent what we experienced during the meeting.. That money was supposed to go to people like us. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. 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 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. Share sensitive information only on official, secure websites. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. 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. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. Lary continued with the meeting after an IT tech fixed the problem. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. [SIGN UP: WSB-TV Daily Headlines Newsletter]. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. 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). Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. 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. 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 first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. 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. 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. 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..