Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. Secure .gov websites use HTTPS Hopefully, he gets all of that, Morrell said. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. Share sensitive information only on official, secure websites. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. 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 . Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. 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. 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. 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. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. 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. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. 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 . 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. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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. His plea came the same morning his resignation as mayor of Stonecrest became official. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. Lary announced his resignation during a Zoom meeting on Tuesday. If you have additional information, pictures, or video email newstipsatlanta@fox.com. Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. His legal team is citing his health and lack of criminal record should merit a lighter sentence. 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. In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. his resignation as mayor of Stonecrest became official. 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. Lary did not tell Church 1 at this time that he actually controlled REMC. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 75 Ted Turner Dr. SW For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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. That money was supposed to go to people like us. ", 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. Sentencing is scheduled for May 12. accused of personally profiting from COVID-19 relief money. A bookkeeper was also involved in the scheme and arraigned, records show. 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. 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. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. The Atlanta Journal-Constitution was the only news outlet at the hearing. But he was using it for his own personal needs.. Lary faces up to 35 years in prison on all three counts. An official website of the United States government. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. He's accused of federal fraud related to COVID-19 relief funds. 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. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. 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. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. He was ordered to pay restitution in the amount of $119,607.69. "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. He also resigned as the citys mayor. (Art by Richard Miller). In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. 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 government said no marketing was ever done. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. 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. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. 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. 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. Last year the Northern District of Georgia US Attorney's office prosecuted at least 100 people involved in a total of $26 million in CARES Act fraud. He faces a max sentence of 35 years in prison. 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. 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. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. 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. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. Hardworking people like us, Will Morrell said. One of the grants was to his church, which he awarded $150,000. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. Jason Lary was accused of stealing more than. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. This material may not be published, broadcast, rewritten, or redistributed. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). 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. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 2023 FOX Television Stations. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. 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 . Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. Atlanta, GA 30303-3309. The former mayor of Stonecrest who pleaded guilty to federal fraud charges is making a punishment request. 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. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. 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. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. ) or https:// means youve safely connected to the .gov website. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. 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. 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. Lock During a struggle to implement new city manager, Lary said he was facing what could be his third battle with 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. ) or https:// means youve safely connected to the .gov website. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. 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. As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. 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. 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. His resignation went into effect Wednesday. Those duties include acting as the figurehead of the city and appointing members to boards and committees. 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. We are putting measures into place to prevent what we experienced during the meeting.. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. "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. The resolution also adopted a funding plan for most of Stonecrests relief funds. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. 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. In or about November 2020, Stonecrest published an application on its website for businesses to apply for relief funds under the Small Business Program. 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. This station is part of Cox Media Group Television. Richard B. Russell Federal Building 100 people involved in a total of $26 million in CARES Act fraud. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. This station is part of Cox Media Group Television. Stonecrest mayor appeared in federal court about misusing CARES fund 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. 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. Have a question about Government Services? He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. The details of Boones plea deal are similar to the one Lary accepted. 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 discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. The rescue team said the man was buried up to his neck in soil. Larys last public address to his constituents delivered one last bombshell moment to his tenure. 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. The city's first mayor did not mention his legal troubles in a resignation speech. 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 . Candidates must pay a $600 qualifying fee. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by 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. Lary is expected to be sentenced on July 13 at 10 a.m. 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. All rights reserved. He also settled income taxes he owed going back to 2015. He then asked the church to give $50,000 back to one of the companies included in the scheme. 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. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. "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. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. At least two candidates have publicly said theyll run to be the citys next mayor. Richard B. Russell Federal Building . STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. 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. 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. One of the grants was to his church, which he awarded $150,000. 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. 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. In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Share sensitive information only on official, secure websites. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. Now, the sheriff's office is hoping to reignite the search on this cold case. STONECREST, Ga. Editor's note: The video above is from a previous story. His sentencing is set for May 2. 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. 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.
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