Lary was also ordered to pay $120,000 in restitution as well. 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. Puede participar en nuestro ensayo sobre EPOC? 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 three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. Secure .gov websites use HTTPS The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. He has not been charged with a crime. his resignation as mayor of Stonecrest became official. 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 relief funds were designed to cover costs during the public health emergency. Hopefully, he gets all of that, Morrell said. 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. 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. Copyright 2022 The Associated Press. 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. 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. 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. He faces a max sentence of 35 years in prison. 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 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. 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. 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. 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. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Lary is expected to be sentenced on July 13 at 10 a.m. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. A lock ( Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). 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. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this.". Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. Lock The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. His resignation went into effect Wednesday. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. (Art by Richard Miller). An official website of the United States government. 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. Residents will soon get a chance to elect a new mayor in Stonecrest. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. 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. . Main Office: "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. His sentencing is set for May 2. Lary won the mayors race twice, the citys only mayor in its brief history. Official websites use .gov His sentencing is set for May 2. 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. Have a question about Government Services? 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. A .gov website belongs to an official government organization in the United States. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. 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). "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. One of the grants was to his church, which he awarded $150,000. 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. A bookkeeper was also involved in the scheme and arraigned, records show. This material may not be published, broadcast, rewritten, or redistributed. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. "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. If the special election for the mayors seat requires a runoff election, it will take place June 21. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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. Lania Boone, Larys co-conspirator, pleaded guilty to conspiracy on February 11, 2022. Those duties include acting as the figurehead of the city and appointing members to boards and committees. 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. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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 .gov website belongs to an official government organization in the United States. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. 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 announced his resignation during a Zoom meeting on Tuesday. 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. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. 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 . His resignation went into effect Wednesday. accused of personally profiting from COVID-19 relief money. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. 2023 Cox Media Group. On October 28, 2020, for example, Clarence Boone and Lary circumvented the application process and directed more than $50,000 to a business that they knew was not conducting any legitimate operations, and Lania Boone ultimately wrote the check to disburse the funds. 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. 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. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. All rights reserved. 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 then asked the church to give $50,000 back to one of the companies included in the scheme. Lary is free on bond. This case was investigated by the Federal Bureau of Investigation. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . He then asked the church to give $50,000 back to one of the companies included in the scheme. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 2023 Cox Media Group. Candidates must pay a $600 qualifying fee. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. We are putting measures into place to prevent what we experienced during the meeting.. . 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. 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.. 75 Ted Turner Dr. SW 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. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. 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. 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. 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 CITY COUNCIL VOTES TO CENSURE MAYOR AFTER IMMATURE PUBLIC REMARKS, "Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief," said Acting U.S. Attorney Kurt R. Erskine. "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. 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. An official website of the United States government. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. 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. 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. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia A locked padlock ATLANTA (AP) A suburban Atlanta mayor pleaded guilty to federal fraud charges a day after announcing his resignation from office. 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. If you have additional information, pictures, or video email newstipsatlanta@fox.com. His plea came the same morning his resignation as mayor of Stonecrest became official. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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 censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. 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 city will hold a special election to select a new mayor. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. The city will hold a special election on May 24 to fill the rest of the mayor's term after the office was vacated by Jason Lary in January. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Lary resigned a day before he pleaded guilty to. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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. 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. Learn about careers at Cox Media Group. Inpractice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. He also settled income taxes he owed going back to 2015. 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. 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. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. 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. 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. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 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. The Atlanta Journal-Constitution was the only news outlet at the hearing. 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. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. Richard B. Russell Federal Building Lary was supposed to be in office until the end of 2023. Suite 600 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. In another case, Lary allegedly gave a church $50,000. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. "It's time for me to retire from politics and focus on my health," Lary said. 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. 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. 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"There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". ", 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. 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. Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. 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. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 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 previously denied the accusations of fraud. February 21, 2022 Chris Butler. 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.
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