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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. 2: Person of Interest. 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. 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. 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. 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. Now, the sheriff's office is hoping to reignite the search on this cold case. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Have a question about Government Services? Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. 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. ) or https:// means youve safely connected to the .gov website. 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 agreed that he diverted at least $650,000 in relief money by requiring Stonecrest churches and businesses to kick back a portion of their grant money to companies he controlled. He has not been charged with a crime. The city's first mayor did not mention his legal troubles in a resignation speech. I let us down, he told the court, according to the Atlanta Journal-Constitution. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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. Main Office: One of the grants was to his church, which he awarded $150,000. "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. As mayor, he took control of who received $6.2 million in CARES Act money. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 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. Learn about careers at Cox Media Group. Now, the sheriff's office is hoping to reignite the search on this cold case. 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. No stone was more important than the cornerstone because the integrity of the whole structure depended on the cornerstone containing . Lary did not tell the businesses that he controlled these entities. "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. 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. 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. That money was supposed to go to people like us. Boone agreed to cooperate with government agents, provide records and testify at future trials. 2022-02-12 - By Zachary Hansen zachary.hansen@ajc.com. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," 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 continued with the meeting after an IT tech fixed the problem. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 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. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. The last day Stonecrest residents can register to vote in time for the special election is April 25. 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. 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 qualification period will take place roughly a month before the election date, and it must end 25 days before the election takes place. 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. accused of personally profiting from COVID-19 relief money. That decision will be made at a later date. 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. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. He then asked the church to give $50,000 back to one of the companies included in the scheme. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. 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. (Art by Richard Miller). Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. The resolution also adopted a funding plan for most of Stonecrests relief funds. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. Residents will soon get a chance to elect a new mayor in Stonecrest. 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. His sentencing is set for May 2. His sentencing hearing has been set for May 2. 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. 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. 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 . "I came back too early from my second round with cancer. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. 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. 2023 FOX Television Stations. . 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. "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.". 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. 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 first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. The image comes from the ancient quarries where highly-trained stonemasons carefully chose the stones used in construction. The rescue team said the man was buried up to his neck in soil. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 75 Ted Turner Dr. SW "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. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and 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. 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. 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. Example video title will go here for this video, Should Be Alive Ep. The potential stakes are high for offenders who break new guidelines. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. It's been five years since a Carroll County man mysteriously disappeared from his home. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Lary issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. Suite 600 For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 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. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. They are purposely seeking to tear down everything I have worked to build in Stonecrest. 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. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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. Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. 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 pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. His sentencing is set for May 2. The three conspired to steal and misappropriate relief funds intended for struggling businesses in Stonecrest. He's accused of federal fraud related to COVID-19 relief funds. 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. Jason Lary, whose resignation. "I did the best I could do with what we had in place.". By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. He also settled income taxes he owed going back to 2015. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. 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. She is scheduled to be sentenced on August 15, 2022. His resignation went into effect Wednesday. The. 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 used three different methods to steal the funds Stonecrest disbursed to MRPC. His resignation went into effect Wednesday. Police searching for suspect in northwestern Georgia elementary school burglary, Dunwoody Police catch man impersonating officer, Ex-officer charged in Susana Morales' death now charged in 2019 Snellville burglary, Frederick, MD tanker explosion leaves 1 dead; Shuts down part of US-15, Photos show rescue of Woodstock man 'buried up to his neck' in collapsed trench, Clayton County twin sisters make history rising the ranks in Georgia UPS facility, Prominent Roswell restaurant owner charged with sexual crimes involving 2 minors, Families intensify search for two men missing for more than a week, Disneyland banned Rebel Wilson over selfie, actress says, Police issue close to 100 traffic tickets at same Sandy Springs intersection, Georgia baby girl reported missing with man diagnosed with mental illness, police say, Sheriff's office continues five-year-long search for missing Carrollton man. Boone is scheduled to be sentenced on May 12. 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. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. The former mayor of Stonecrest who pleaded guilty to federal fraud charges is making a punishment request. Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. The about-face came in. Share sensitive information only on official, secure websites. "It's time for me to retire from politics and focus on my health," Lary said. If you have additional information, pictures, or video email newstipsatlanta@fox.com. None the less, I will continue to serve the people of the great city of Stonecrest.". 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 disclose he controlled these companies. We are putting measures into place to prevent what we experienced during the meeting.. One of the grants was to his church, which he awarded $150,000. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. 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. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. Official websites use .gov Sentencing is scheduled for May 12. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. 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 . This case was investigated by the Federal Bureau of Investigation. 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. 2021 5 Feb. "The stone the builders rejected has become the capstone" ( Psalm 118:22 ). Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . This story is breaking. Secure .gov websites use HTTPS 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. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. In January, Jason Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. Jason Lary was accused of stealing more than.