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. Around the same time, Lary directed approximately $7,600 in stolen relief funds to be used for Boones sons college tuition and rent. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. 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. 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. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . 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. STONECREST, Ga. Editor's note: The video above is from a previous story. Boone is scheduled to be sentenced on May 12. Residents will soon get a chance to elect a new mayor in Stonecrest. The details of Boones plea deal are similar to the one Lary accepted. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE, FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. But he was using it for his own personal needs.. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Hardworking people like us, Will Morrell said. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. 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 Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Check back for details. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. Suite 600 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. We will continue to uncover and prosecute those who exploit government positions and COVID relief programs to fuel their own greed., 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 Keri Farley, Special Agent in Charge of FBI Atlanta. 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. 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. 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. 2023 Cox Media Group. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . 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. 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). The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. Lary is expected to be sentenced on July 13 at 10 a.m. 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 January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. 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. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. BREAKING: A bookkeeper and spouse of a former Stonecrest official accepted a plea deal in federal court Friday afternoon for participating in the same fraud scheme that brought down the city's. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Learn about careers at Cox Media Group. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Share sensitive information only on official, secure websites. 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. Official websites use .gov Now, the sheriff's office is hoping to reignite the search on this cold case. 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. Learn about careers at Cox Media Group. 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. The mayor only votes in the event of a tie a rarity for a five-member City Council. Like the rest of the country, the residents and businesses of Stonecrest community looked to its government for vital assistance in response to the COVID-19 pandemic. The government said no marketing was ever done. We are putting measures into place to prevent what we experienced during the meeting.. 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 a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. Now, the sheriff's office is hoping to reignite the search on this cold case. The phrase is quoted by Jesus, who applies it to his mission of death and glory, after having told the . He faces a max sentence of 35 years in prison. An official website of the United States government. 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. "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. This material may not be published, broadcast, rewritten, or redistributed. 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. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. He was ordered to pay restitution in the amount of $119,607.69. Lary is due in court to answer for fraud allegations. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. 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 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.. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". He also resigned as the citys mayor. Boone agreed to cooperate with government agents, provide records and testify at future trials. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. "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.". 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. Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Jason Lary was accused of stealing more than. At least two candidates have publicly said theyll run to be the citys next mayor. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. "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. 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.. 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. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. Both Boone and Lary remain out of jail on bond until their sentencing hearings. U.S. Attorney's Office, Northern District of Georgia, Former U.S. The first is verse 22, "The stone rejected by the builders has become the corner-stone". 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. 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. Lary was also ordered to pay $120,000 in restitution as well. 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 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. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. He has not been charged with a crime. "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. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. The relief funds were designed to cover costs during the public health emergency. In general, according to the Department of the Treasury, relief funds could only be used to cover costs that [were] necessary expenditures incurred due to the public health emergency. Lary won the mayors race twice, the citys only mayor in its brief history. 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. 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. 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). The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. Secure .gov websites use HTTPS The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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. 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. 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. 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. 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. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. Lary faces up to 35 years in prison on all three counts. 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. ", 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. The former mayor of Stonecrest who pleaded guilty to federal fraud charges is making a punishment request. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. Lary continued with the meeting after an IT tech fixed the problem. (Art by Richard Miller). 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. 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. The last day Stonecrest residents can register to vote in time for the special election is April 25. Those duties include acting as the figurehead of the city and appointing members to boards and committees. The potential stakes are high for offenders who break new guidelines. 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. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. Lary did not disclose he controlled these companies. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. A .gov website belongs to an official government organization in the United States. 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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. 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 judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. 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. Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). It's been five years since a Carroll County man mysteriously disappeared from his home. 100 people involved in a total of $26 million in CARES Act fraud. Copyright 2022 The Associated Press. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. Jason Lary, the former mayor of Stonecrest, pleaded guilty, according to a news release. As mayor, he took control of who received $6.2 million in CARES Act money. A locked padlock This material may not be published, broadcast, rewritten, or redistributed. 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By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. His resignation went into effect Wednesday. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. 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. Suite 600 His legal team is citing his health and lack of criminal record should merit a lighter sentence. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 One of the grants was to his church, which he awarded $150,000. Candidates must pay a $600 qualifying fee. 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. City leaders have not chosen a specific location for the special election to be held. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. Lary did not tell the businesses that he controlled these entities. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. 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. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. 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 court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. 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 indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia Lary announced his resignation to the city on a Zoom call . The rescue team said the man was buried up to his neck in soil. 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. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. The image comes from the ancient quarries where highly-trained stonemasons carefully chose the stones used in construction. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Lary resigned a day before he pleaded guilty to. 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. 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. Lary previously denied the accusations of fraud. I let us down, he told the court, according to the Atlanta Journal-Constitution. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. 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. 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. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. She is scheduled to be sentenced on August 15, 2022. 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 . 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. 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. 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. His coconspirators previously pleaded guilty and received the following sentences: This case is being investigated by the Federal Bureau of Investigation and the DeKalb County District Attorneys Office. 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. "If you don't know protocol, you better learn it with me," said Lary. Lary announced his resignation to the city on a Zoom call Tuesday.. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. Stonecrest residents that Jones talked to were outraged. Credit: Photo courtesy of Boston College Athletics, Former Stonecrest mayors accomplice pleads guilty to felony, Stonecrest councilwoman among candidates running to replace disgraced mayor, Jahmyr Gibbs: Georgia Tech helped make me who I am today, Georgia Tech closes regular season with win over Boston College. This station is part of Cox Media Group Television. "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. 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. 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.