Small businesses that applied for financial relief were asked on an application form if theyd be willing to give 25% of the grant to one of three companies to market their business. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. His resignation went into effect Wednesday. U.S. Attorney's Office, Northern District of Georgia, Former U.S. He's accused of federal fraud related to COVID-19 relief funds. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. 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 . He was ordered to pay restitution in the amount of $119,607.69. 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. Stonecrest Mayor Jason Lary on Wednesday pleaded guilty to wire fraud, federal program theft and conspiracy to commit federal program theft, The Atlanta Journal-Constitution reported. 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. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. This case was investigated by the Federal Bureau of Investigation. 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. Candidates must pay a $600 qualifying fee. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. 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. 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. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. "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. Stonecrest ex-mayor's cohort pleads guilty in fraud scheme Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. 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. 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. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. His resignation went into effect Wednesday. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. Secure .gov websites use HTTPS Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. Lock In one case, federal investigators alleged that Lary gave a church $150,000 under the condition that they would give a third of the money to a company called Real Estate Management Consultants LLC, which Lary controlled. 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,. Library : Stone Rejected Has Become Cornerstone, The 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. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. Those duties include acting as the figurehead of the city and appointing members to boards and committees. 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. Stone clemency order shows Trump wiped prison sentence, supervised 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. This material may not be published, broadcast, rewritten, or redistributed. Share sensitive information only on official, secure websites. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. Stonecrest Mayor Pleads Guilty to Stealing Georgia COVID-19 Relief Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. 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. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. 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. 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. Stonecrest mayor pleads guilty to federal fraud charges In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. 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. The qualification period will take place roughly a month before the election date, and it must end 25 days before the election takes place. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. Jason Lary, whose resignation. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE, FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME. 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. He has not been charged with a crime. Former Stonecrest mayor, bookkeeper plead guilty to theft of - MSN 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. Sentencing is scheduled for May 12. The rescue team said the man was buried up to his neck in soil. Former Stonecrest mayor's accomplice pleads guilty to felony - ajc Bookkeeper admits to role helping former Stonecrest mayor steal COVID Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. 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. Share sensitive information only on official, secure websites. Hardworking people like us, Will Morrell said. Lary continued with the meeting after an IT tech fixed the problem. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. his resignation as mayor of Stonecrest became official. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. Those companies were all connected to Lary. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 Official websites use .gov In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. "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. Check back for details. Suite 600 Lary, 60, pleaded. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Lary is due in court to answer for fraud allegations. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. 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. 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. If the special election for the mayors seat requires a runoff election, it will take place June 21. If you have additional information, pictures, or video email newstipsatlanta@fox.com. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Richard B. Russell Federal Building His sentencing hearing has been set for May 2. The potential stakes are high for offenders who break new guidelines. Have a question about Government Services? 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. 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. 2023 Cox Media Group. 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. 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,. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Lary previously denied the accusations of fraud. "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. 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. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. Secure .gov websites use HTTPS Former Stonecrest mayor pleads guilty to federal fraud charges 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. 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. Copyright 2022 The Associated Press. . Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. This man's imprisonment shows why California's 'special circumstances (Art by Richard Miller). Lary announced his resignation to the city on a Zoom call Tuesday. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. 75 Ted Turner Dr. SW 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. The. The image comes from the ancient quarries where highly-trained stonemasons carefully chose the stones used in construction. The population is now 60,000 with a budget of more than $13 million. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. Stonecrest residents that Jones talked to were outraged. 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. 2023 Cox Media Group. The first is verse 22, "The stone rejected by the builders has become the corner-stone". This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. Atlanta, GA 30303-3309. 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 indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia Former Stonecrest Mayor Jason Lary pleads guilty to federal - WAGA STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. We have no response about the Mayors resignation, city officials said. This story is breaking. 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 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. "I ask that you measure me by the whole story," Lary said. 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. 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. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Boone, who wrote the bulk of the checks using the stolen funds, agreed with that Friday in court. Stonecrest Mayor Pleads Guilty to Federal Fraud Charges A lock ( Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Former mayor admits role in COVID relief fraud scheme Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. "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. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. A bookkeeper and spouse of a - DeKalb County News Now | Facebook Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Lary won the mayors race twice, the citys only mayor in its brief history. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Former Stonecrest Mayor Pleads Guilty To Federal Fraud Charges 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. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. 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. The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes.. 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. They are purposely seeking to tear down everything I have worked to build in Stonecrest. 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. 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. Attorneys for the Northern District of Georgia, Stonecrests former Senior Economic Development Manager pleads guilty to theft of 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, Stonecrests Former Senior Economic Development Manager Pleads Guilty To Theft of COVID 19 Relief Funds. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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. Lary faces up to 35 years in prison on all three counts. A bookkeeper was also involved in the scheme and arraigned, records show. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. 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. The resolution also adopted a funding plan for most of Stonecrests relief funds. Stonecrest was required to spend the relief funds in accordance with the CARES Act. Lary did not disclose he controlled these companies. Jason Lary was accused of stealing more than. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Larys last public address to his constituents delivered one last bombshell moment to his tenure. That money was supposed to go to people like us. Lock Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. The details of Boones plea deal are similar to the one Lary accepted. Former Stonecrest mayor pleads guilty to federal fraud charges 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. 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. Hopefully, he gets all of that, Morrell said. 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. ATLANTA (AP) A suburban Atlanta mayor pleaded guilty to federal fraud charges a day after announcing his resignation from office. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 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. 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 . 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. He explained he needs to take some time to work with doctors and care for himself. ATLANTA - After spending nearly a year proclaiming his innocence, former Stonecrest mayor Jason Lary admitted masterminding a scheme to steal COVID relief funds. 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.

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