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. A bookkeeper and spouse of a - DeKalb County News Now | Facebook (Art by Richard Miller). Former Stonecrest mayor's accomplice pleads guilty to felony - ajc 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. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. It's been five years since a Carroll County man mysteriously disappeared from his home. Former Stonecrest Mayor Pleads Guilty To Federal Fraud Charges By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. 2: Person of Interest. Sentencing is scheduled for May 12. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. 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. Lary announced his resignation to the city on a Zoom call . I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. An official website of the United States government. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. ATLANTA (AP) A suburban Atlanta mayor pleaded guilty to federal fraud charges a day after announcing his resignation from office. The city's first mayor did not mention his legal troubles in a resignation speech. Cobbles term is set to expire in 2026, so another special election will be necessary. I let us down, he told the court, according to the Atlanta Journal-Constitution. This case was investigated by the Federal Bureau of Investigation. 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. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 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. . 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. Puede participar en nuestro ensayo sobre EPOC? FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. 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. 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. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. His sentencing hearing has been set for May 2. Official websites use .gov 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 judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. Shes the wife of Clarence Boone, the citys former economic development director who was fired as a result of investigations in the citys relief program. . Lary is expected to be sentenced on July 13 at 10 a.m. He faces a max sentence of 35 years in prison. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. 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 . Former mayor admits role in COVID relief fraud scheme ) or https:// means youve safely connected to the .gov website. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Former mayor asks judge if he can serve sentence from home after For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Lary, who faces up to 35 years in prison, will be sentenced on May 2. 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. 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,. A .gov website belongs to an official government organization in the United States. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this.". Stonecrest ex-mayor's cohort pleads guilty in fraud scheme A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Lary faces up to 35 years in prison on all three counts. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". Richard B. Russell Federal Building This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. He also settled income taxes he owed going back to 2015. Former mayor of metro Atlanta city pleads guilty to fraud Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. Former Stonecrest mayor sentenced to nearly 5 years in prison for The city will hold a special election to select a new mayor. "If you don't know protocol, you better learn it with me," said Lary. Larys last public address to his constituents delivered one last bombshell moment to his tenure. If you have additional information, pictures, or video email newstipsatlanta@fox.com. 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. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. Stonecrest Mayor Pleads Guilty to Federal Fraud Charges Have a question about Government Services? They are purposely seeking to tear down everything I have worked to build in Stonecrest. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Stonecrest residents that Jones talked to were outraged. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . "It's time for me to retire from politics and focus on my health," Lary said. 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. "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.". Candidates must pay a $600 qualifying fee. 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 resolution also adopted a funding plan for most of Stonecrests relief funds. U.S. Attorney's Office, Northern District of Georgia, Former U.S. None the less, I will continue to serve the people of the great city of Stonecrest.". Lary resigned from his post as a mayor right before filing a guilty plea to the charges, citing health reasons and three battles with cancer. That money was supposed to go to people like us. 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. 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. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. 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. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 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). 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. ) or https:// means youve safely connected to the .gov website. Lary, 60, pleaded. He then asked the church to give $50,000 back to one of the companies included in the scheme. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. Atlanta, GA 30303-3309. 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. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 2023 Cox Media Group. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. 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", 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. He also resigned as the citys mayor. Lary is accused of stealing more than $650,000 in COVID-19 relief funds meant to help the people of Stonecrest who he was supposed to serve. 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. Jason Lary was accused of stealing more than. A former suburban Atlanta mayor was sentenced to nearly five years in prison on Wednesday for masterminding a scheme to steal nearly $925,000 of the $6.2 million in COVID-19 relief funds that. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . He said he had surgery in late December 2020. "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. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 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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. 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. The first is verse 22, "The stone rejected by the builders has become the corner-stone". 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. His sentencing is set for May 2. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. 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). 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. 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. 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. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. Main Office: This material may not be published, broadcast, rewritten, or redistributed. Suite 600 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. Lock The city of Stonecrest could hold a special election as early as March to decide Larys replacement. 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. 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. 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. Inpractice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around 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 was supposed to be in office until the end of 2023. 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. 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. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. 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. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Those companies were all connected to Lary. Jason Lary, whose resignation. 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. 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. Example video title will go here for this video, Should Be Alive Ep. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. But he was using it for his own personal needs.. 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. 2023 Cox Media Group. That decision will be made at a later date. 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 discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. The government said no marketing was ever done. Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. "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.". 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. 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. "I did the best I could do with what we had in place.". 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. 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. Stone clemency order shows Trump wiped prison sentence, supervised The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. 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. 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. 2022-02-12 - By Zachary Hansen zachary.hansen@ajc.com. 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. Richard B. Russell Federal Building A lock ( 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. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. Boone is scheduled to be sentenced on May 12. Boone agreed to cooperate with government agents, provide records and testify at future trials. Hopefully, he gets all of that, Morrell said. This story is breaking. 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. 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. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. Both Boone and Lary remain out of jail on bond until their sentencing hearings. 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 .
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