Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. 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. Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000. Stone clemency order shows Trump wiped prison sentence, supervised He has not been charged with a crime. 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 about-face came in. 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 mayor of Stonecrest pleads guilty to federal charges 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. 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. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee. He then asked the church to give $50,000 back to one of the companies included in the scheme. Lary announced his resignation to the city on a Zoom call Tuesday. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. 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. Boone is scheduled to be sentenced on May 12. Richard B. Russell Federal Building "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. Lania Boone, Larys co-conspirator, pleaded guilty to conspiracy on February 11, 2022. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. 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. His resignation went into effect Wednesday. City leaders have not chosen a specific location for the special election to be held. 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. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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. 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. 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. That decision will be made at a later date. (Art by Richard Miller). Jason Lary, who announced his resignation as the mayor of Stonecrest, pleaded guilty Wednesday to federal charges of wire fraud, conspiracy to commit federal. As you can tell with technology, it can be immature and ridiculous, and thats fine, Lary said. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. He then asked the church to give $50,000 back to one of the companies included in the scheme. He's accused of federal fraud related to COVID-19 relief funds. Lary, who faces up to 35 years in prison, will be sentenced on May 2. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. 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. All rights reserved. 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. STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE. 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. Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Secure .gov websites use HTTPS Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. The qualification period will take place roughly a month before the election date, and it must end 25 days before the election takes place. Instead, $108,000 dollars were transferred to pay off the mortgage on a lakefront propertyowned by the former mayor. Residents will soon get a chance to elect a new mayor in Stonecrest. No stone was more important than the cornerstone because the integrity of the whole structure depended on the cornerstone containing . I let us down, he told the court, according to the Atlanta Journal-Constitution. The 60-year-old Lary pleaded guilty in January to fraud and theft charges. As mayor, he took control of who received $6.2 million in CARES Act money. Copyright 2022 The Associated Press. 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. 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. Those companies were all connected to Lary. His sentencing hearing has been set for May 2. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Former Stonecrest Mayor Pleads Guilty To Federal Fraud Charges In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. He resigned his post on Jan. 4 and accepted a plea deal the next day for concocting the scheme. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this.". Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. "Boones guilty plea further demonstrates our commitment to prosecuting those who seek to exploit COVID relief programs for their own gain. 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. 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. DEKALB COUNTY, GA The former mayor of Stonecrest pleaded guilty to wire fraud, theft of government funds and conspiracy, reported WAGA-TV. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. 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. The first is verse 22, "The stone rejected by the builders has become the corner-stone". 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. 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. 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. Lary did not disclose he controlled these companies. Author: 11alive.com Published: 6:24 PM EST February 11, 2022 "It's time for me to retire from politics and focus on my health," Lary said. Former Stonecrest Mayor Pleads Guilty To Federal Fraud Charges 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. In one case, federal investigators alleged that Lary gave a church $150,000 under the condition that they would give a third of the money to a company called Real Estate Management Consultants LLC, which Lary controlled. Prosecutors said the 59-year-old former mayor concocted a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act. Stonecrest mayor pleads guilty to federal fraud charges - CBS 46