Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. The details of Boones plea deal are similar to the one Lary accepted. STONECREST, Ga. - A bookkeeper hired by former Stonecrest mayor Jason Lary has pleaded guilty to conspiracy for her part in a scheme to steal COVID relief funds. The city's first mayor did not mention his legal troubles in a resignation speech. STONECREST, Ga. Editor's note: The video above is from a previous story. 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. Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. She is scheduled to be sentenced on August 15, 2022. 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. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. In return, prosecutors recommended a lighter sentence of 366 days in confinement half in prison and half as home arrest. He then asked the church to give $50,000 back to one of the companies included in the scheme. 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. 2023 FOX Television Stations. ATLANTA (AP) A suburban Atlanta mayor pleaded guilty to federal fraud charges a day after announcing his resignation from office. Sentencing is scheduled for May 12. Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. 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. 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. "The FBI will do everything in our power to make sure stolen funds are returned to the public, and individuals involved in this type of criminal behavior are prosecuted to the fullest extent of the law.". He's accused of federal fraud related to COVID-19 relief funds. 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. 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. 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. Secure .gov websites use HTTPS DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. "Quite frankly folks, now its turned ugly," he said during a news conference in April 2021. 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. The relief funds were designed to cover costs during the public health emergency. 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. 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. Lary wont be required to report to prison until after Dec. 15, giving him time for more cancer treatments. The Atlanta Journal-Constitution was the only news outlet at the hearing. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. He said he had surgery in late December 2020. 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. 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.. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Lary resigned a day before he pleaded guilty to. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 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. 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. 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. He does not have to report to prison until Dec. 15, so he can continue treatment for prostate cancer. Secure .gov websites use HTTPS Both Boone and Lary remain out of jail on bond until their sentencing hearings. 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. Lary announced his resignation to the city on a Zoom call . Have a question about Government Services? 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. 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 pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. The first is verse 22, "The stone rejected by the builders has become the corner-stone". The judge says Lary's actions were "deplorable" and rejected a defense request for Lary to avoid prison time. Federal authorities brought the mayor of Stonecrest to court alleging he stole hundreds of thousands of dollars in COVID-19 relief granted to the city. 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.. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. Father defends terrified family with machete after home intruder breaks through window in middle of night, Paolo Banchero scores 31 points, Magic beat Hornets 117-106. The relief funds deposited into the Visit Us and Battleground Media accounts were used by Lary to benefit himself and his associates. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Lary announced his resignation during a Zoom meeting on Tuesday. 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. 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. Lary was supposed to be in office until the end of 2023. An official website of the United States government. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. 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. his resignation as mayor of Stonecrest became official. ) or https:// means youve safely connected to the .gov website. 75 Ted Turner Dr. SW Have a question about Government Services? I let us down, he told the court, according to the Atlanta Journal-Constitution. 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. 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. He explained he needs to take some time to work with doctors and care for himself. Main Office: 2023 Cox Media Group. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 100 people involved in a total of $26 million in CARES Act fraud. Richard B. Russell Federal Building Former Los Angeles City Councilmember Jose Huizar pleaded guilty Friday to charges of racketeering and tax evasion, admitting that he extorted at least $1.5 million in bribes from real estate . 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. Lock Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. 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 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. 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. The first mayor of Stonecrest pleaded guilty to the federal charges earlier this year. . 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. 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. 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. They are purposely seeking to tear down everything I have worked to build in Stonecrest. As mayor, he took control of who received $6.2 million in CARES Act money. 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. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. 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. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. 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. 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. This station is part of Cox Media Group Television. The government said no marketing was ever done. All rights reserved. "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. Jason Lary was accused of stealing more than. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. One of the grants was to his church, which he awarded $150,000. Residents will soon get a chance to elect a new mayor in Stonecrest. A Georgia Senator said he was unsurprised to hear about the indictment. 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. 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. He has not been charged with a crime. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. Credit: Photo courtesy of Boston College Athletics, Former Stonecrest mayor pleads guilty to federal fraud charges, Stonecrest passes on March election date to replace mayor after guilty fraud plea, Jahmyr Gibbs: Georgia Tech helped make me who I am today, Georgia Tech closes regular season with win over Boston College. 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 . The mayor only votes in the event of a tie a rarity for a five-member City Council. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. His plea came the same morning his resignation as mayor of Stonecrest became official. He also settled income taxes he owed going back to 2015. Check back for details. "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.". "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". The. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Boone, who wrote the bulk of the checks using the stolen funds, agreed with that Friday in court. "Mr. Lary has serious health challenges and at age 60 the Defendant finds himself facing a legacy of criminal history that is and was 'money motivated,' and not violence or physical harm to others, nor drug related," his legal team writes in a sentencing memorandum filed with the court. Lary did not tell the businesses that he controlled these entities.
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