Former mayor admits role in COVID relief fraud scheme 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. 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. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. 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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 . Former mayor of metro Atlanta city pleads guilty to fraud The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. His legal team is citing his health and lack of criminal record should merit a lighter sentence. 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. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. "It's time for me to retire from politics and focus on my health," Lary said. Lary announced his resignation to the city on a Zoom call . I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said. Lania Boone received a sentence of six months and one day in prison to be followed by three years of supervised release and was ordered to pay restitution in the amount of $7,657.47. In another case, Lary allegedly gave a church $50,000. In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. 75 Ted Turner Dr. SW STONECREST, Ga. Editor's note: The video above is from a previous story. 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. "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. The federal government permitted DeKalb County to further disburse these relief funds to its municipalities. 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, Prominent Roswell restaurant owner charged with sexual crimes involving 2 minors, Clayton County twin sisters make history rising the ranks in Georgia UPS facility, Alex Murdaugh killed wife, son to buy time, prosecutor says, Families intensify search for two men missing for more than a week, Disneyland banned Rebel Wilson over selfie, actress says, 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. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. This story is breaking. That money was supposed to go to people like us. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Andrea V. Watson. 2023 FOX Television Stations. Lock 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. 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. First, Lary conspired with Boone to steal relief funds before they were disbursed by MRPC. Library : Stone Rejected Has Become Cornerstone, The This case was investigated by the Federal Bureau of Investigation. 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. Stonecrest was required to spend the relief funds in accordance with the CARES Act. 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. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. City leaders have not chosen a specific location for the special election to be held. Lary did not disclose he controlled these companies. Those duties include acting as the figurehead of the city and appointing members to boards and committees. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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. 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. BREAKING: A bookkeeper - The Atlanta Journal-Constitution | Facebook Lary continued with the meeting after an IT tech fixed the problem. The city will hold a special election to select a new mayor. 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. His resignation went into effect Wednesday. Secure .gov websites use HTTPS . Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. A lock ( (FOX 5). She also agreed to pay restitution. 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. Stonecrest could hold a special election to fill the vacant mayor's seat as early as March. The city will hold a special election on May 24 to fill the rest of the mayors term after the office was vacated by Jason Lary in January. ) or https:// means youve safely connected to the .gov website. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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. Stonecrest residents that Jones talked to were outraged. Lary did not tell Church 1 at this time that he actually controlled REMC. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. 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. The. 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. 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. [SIGN UP: WSB-TV Daily Headlines Newsletter]. His sentencing hearing has been set for May 2. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. Lary did not tell the businesses that he controlled these entities. I let us down, he told the court, according to the Atlanta Journal-Constitution. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". 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. The resolution also adopted a funding plan for most of Stonecrests relief funds. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. Former Stonecrest mayor pleads guilty to federal fraud charges STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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. Richard B. 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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. 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. They are purposely seeking to tear down everything I have worked to build in Stonecrest. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. The last day Stonecrest residents can register to vote in time for the special election is April 25. The first is verse 22, "The stone rejected by the builders has become the corner-stone". Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. 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. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. 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. As mayor, he took control of who received $6.2 million in CARES Act money. Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID Main Office: None the less, I will continue to serve the people of the great city of Stonecrest.". For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. The phrase is quoted by Jesus, who applies it to his mission of death and glory, after having told the . This man's imprisonment shows why California's 'special circumstances Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. If the special election for the mayors seat requires a runoff election, it will take place June 21. This station is part of Cox Media Group Television. Check back for details. The City Council voted Monday to set the election date, determine qualifying information and formally ask ask the DeKalb County Board of Registrations and Elections to run the election. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. 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. 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. 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. He's accused of federal fraud related to COVID-19 relief funds. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. 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 . No stone was more important than the cornerstone because the integrity of the whole structure depended on the cornerstone containing . 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. A bookkeeper and spouse of a - DeKalb County News Now | Facebook Those companies were all connected to Lary. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. 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. 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. Jason Lary stole more than $650,000 in COVID-19 relief funds meant to help the. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. 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. Main Office: "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, the former mayor of Stonecrest, pleaded guilty, according to a news release. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. 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. 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 Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Former mayor asks judge if he can serve sentence from home after Former L.A. Councilmember Jose Huizar pleads guilty in corruption case 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. Lary is free on bond. Larys last public address to his constituents delivered one last bombshell moment to his tenure. He then asked the church to give $50,000 back to one of the companies included in the scheme. 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. Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. It's been five years since a Carroll County man mysteriously disappeared from his home. A locked padlock An official website of the United States government. accused of personally profiting from COVID-19 relief money. 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. Lary also made the defendants wife, Lania Boone, the bookkeeper charged with distributing relief funds. One of the grants was to his church, which he awarded $150,000. Lary announced his resignation during a Zoom meeting on Tuesday. . 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. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. A locked padlock For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. A bookkeeper was also involved in the scheme and arraigned, records show. U.S. Attorney's Office, Northern District of Georgia, Former U.S. If you have additional information, pictures, or video email newstipsatlanta@fox.com.