Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. Richard B. Russell Federal Building At least two candidates have publicly said theyll run to be the citys next mayor. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. . Library : Stone Rejected Has Become Cornerstone, The He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. Both Boone and Lary remain out of jail on bond until their sentencing hearings. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. 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. Lary announced his resignation to the city on a Zoom call Tuesday. One of the grants was to his church, which he awarded $150,000. "It's time for me to retire from politics and focus on my health," Lary said. 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. 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. 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. STONECREST, Ga. Editor's note: The video above is from a previous story. He then asked the church to give $50,000 back to one of the companies included in the scheme. He faces a max sentence of 35 years in prison. The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. accused of personally profiting from COVID-19 relief money. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 His sentencing hearing has been set for May 2. 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. A bookkeeper and spouse of a - DeKalb County News Now | Facebook ATLANTA - After spending nearly a year proclaiming his innocence, former Stonecrest mayor Jason Lary admitted masterminding a scheme to steal COVID relief funds. Lock The potential stakes are high for offenders who break new guidelines. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Atlanta, GA 30303-3309. Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. Stonecrest Mayor Pleads Guilty to Federal Fraud Charges 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. and were incurred during the period that [began] on March 1, 2020, and [ended] on December 30, 2020. Examples of eligible expenditures were medical expenses, public health expenses, and grants to small businesses to reimburse the costs of business interruption caused by required closures. Lary announced his resignation during a Zoom meeting on Tuesday. 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. As mayor, he took control of who received $6.2 million in CARES Act money. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. But he was using it for his own personal needs.. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. 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. Sentencing is scheduled for May 12. If the special election for the mayors seat requires a runoff election, it will take place June 21. Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. 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. Hardworking people like us, Will Morrell said. Atlanta, GA 30303-3309. Lary did not tell the businesses that he controlled these entities. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. His sentencing is set for May 2. Then, Lary caused the city to enter a contract with MPRC to disburse the relief funds as directed by Stonecrest. I let us down, he told the court, according to the Atlanta Journal-Constitution. Former Mayor of Stonecrest sentenced to prison for stealing COVID-19 FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. The last day Stonecrest residents can register to vote in time for the special election is April 25. Roger Stone prosecutors quit after furor over Trump ally's sentence - CNBC Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. 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. The about-face came in. Former Stonecrest mayor sentenced to nearly 5 years in prison for This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. 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. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. A bookkeeper was also involved in the scheme and arraigned, records show. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. "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. 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The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. This material may not be published, broadcast, rewritten, or redistributed. 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. He said he had surgery in late December 2020. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting. 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. 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. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. A judge will have the final say on her sentencing; her conspiracy charge carries a maximum of five years behind bars. The qualification period will take place roughly a month before the election date, and it must end 25 days before the election takes place. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. 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, whose resignation went into effect at 10 a.m. Wednesday, pleaded guilty to three counts involving wire fraud, theft of government funds and conspiracy. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. 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. 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. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. He explained he needs to take some time to work with doctors and care for himself. A lock ( The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. 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, whose resignation. Have a question about Government Services? Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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. Former Stonecrest mayor pleads guilty to federal fraud charges 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. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. Former Stonecrest mayor pleads guilty to federal fraud charges Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. 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. Stonecrest Mayor Pleads Guilty to Stealing Georgia COVID-19 Relief He also settled income taxes he owed going back to 2015. 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. City leaders have not chosen a specific location for the special election to be held. 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. "I came back too early from my second round with cancer. Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. 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. Former Stonecrest mayor Jason Lary is asking for a lighter sentence than he faces after pleading guilty to allegedly stealing COVID relief funds awarded to the city during the pandemic. He has not been charged with a crime. ) or https:// means youve safely connected to the .gov website. His sentencing is set for May 2. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. Stonecrest mayor pleads guilty to federal fraud charges, Former mayor of Stonecrest, bookkeeper plead guilty to theft of COVID-19 relief funds, LIST: Schools across Georgia closing early ahead of possible severe weather, Gallery of storm damage across GA: Send us your photos, videos, Firefighters rescue Cherokee County man buried up to his neck in trench, Excel Church gives despite recovery from fire, Father and 9-month-old daughter reported missing in Clayton County, 26-year-old woman shot while driving in Decatur, Sign up for Atlanta News First Newsletters. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. 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. Richard B. Russell Federal Building By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. 2023 Cox Media Group. His resignation went into effect Wednesday. Stonecrest's Jason Lary COVID funds fraud case - 11Alive.com Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. U.S. Attorney's Office, Northern District of Georgia, Former U.S. An official website of the United States government. Lary placed the defendant, Clarence Boone, who was then Senior Economic Development Manager for Stonecrest, in charge of overseeing the Small Business Program. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. Suite 600 The resolution also adopted a funding plan for most of Stonecrests relief funds. "I ask that you measure me by the whole story," Lary said. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. The mayor only votes in the event of a tie a rarity for a five-member City Council. 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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. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. That money was supposed to go to people like us. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE, FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME. 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.