Since Larys term was set to expire at the end of 2023, the city charter requires a special election to fill his post. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. He's accused of federal fraud related to COVID-19 relief funds. The rescue team said the man was buried up to his neck in soil. Lania Boone, Larys co-conspirator, pleaded guilty to conspiracy on February 11, 2022. A .gov website belongs to an official government organization in the United States. His resignation went into effect Wednesday. The former mayor of Stonecrest and a bookkeeper who administered COVID-19 relief funds to the town pleaded guilty in federal court this month to charges related to the theft of pandemic relief funds. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. Yet Lary and others asked that these contributions be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Charles Johnson, Sr., has pleaded guilty for not paying $1.4 million in payroll taxes and for failure to pay employment taxes. 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 - 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. 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. 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. 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. 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. None the less, I will continue to serve the people of the great city of Stonecrest.". . Until a new mayor is elected, the mayors responsibilities will be handled by the mayor pro tem. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . Stonecrest was required to spend the relief funds in accordance with the CARES Act. Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. Both Boone and Lary remain out of jail on bond until their sentencing hearings. "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.". Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. 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. Lary used three different methods to steal the funds Stonecrest disbursed to MRPC. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks]. 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. 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.. The potential stakes are high for offenders who break new guidelines. 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. Lary, 60, pleaded. Candidates must pay a $600 qualifying fee. 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. February 21, 2022 Chris Butler. In general, according to the Department of the Treasury, relief funds could only be used to cover costs that [were] necessary expenditures incurred due to the public health emergency. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. In January, Lary pleaded guilty to wire fraud, conspiracy to commit federal program theft and federal program theft. The city of Stonecrest could hold a special election as early as March to decide Larys replacement. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). Lary and others falsely claimed that the money would be each businesss contribution to Stonecrest-related marketing and advertising. In court on Wednesday, Lary apologized to his family, friends and Stonecrest residents. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. The details of Boones plea deal are similar to the one Lary accepted. He then asked the church to give $50,000 back to one of the companies included in the scheme. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal federal pandemic relief funds. 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. This station is part of Cox Media Group Television. Lary resigned a day before he pleaded guilty to. 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. 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 Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. Atlanta, GA 30303-3309. Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case. Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. The mayor only votes in the event of a tie a rarity for a five-member City Council. 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. 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. 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. He also resigned as the citys mayor. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad Choices. The government said no marketing was ever done. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. 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. Assistant U.S. Attorney Garrett L. Bradford, Chief of Public Integrity and Civil Rights, is prosecuting the case. A lock ( Jason Lary was accused of stealing more than $650,000 in COVID-19 relief funds. The former mayor of Stonecrest who pleaded guilty to federal fraud charges is making a punishment request. 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. 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. 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. At least two candidates have publicly said theyll run to be the citys next mayor. Lary announced his resignation during a Zoom meeting on Tuesday. "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. 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. Boones case matches the legal process used by Jason Lary, the founding mayor of Stonecrest. 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. Briefs: 11Alives news director goes to Gray; Honey Boo Boos boyfriend arrested; Marlon Woman accused of killing ill husband released from jail, Class 7A: Semifinal coverage from Georgia State, DeKalb volunteers to plant 150 trees during March, Decatur hosts second community meeting on March 2, Atlantas Carter Center preps for future without founder, Photography club captures hope during pandemic, March food and drink events to check out in metro Atlanta. . Those companies were all connected to Lary. 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. 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. 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. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. (Art by Richard Miller). STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. 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. Stonecrest residents that Jones talked to were outraged. U.S. Attorney's Office, Northern District of Georgia, Former U.S. Lary continued with the meeting after an IT tech fixed the problem. Larys last public address to his constituents delivered one last bombshell moment to his tenure. This station is part of Cox Media Group Television. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. 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. 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. "The question of compassion to this Honorable Court is what is the appropriate sentenced for the conduct of this Defendant who, when confronted 'fessed up' and avoided costly indictment and made good faith efforts to cooperate with the Government," court documents read. His sentencing hearing has been set for May 2. Have a question about Government Services? In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. Deana Timberlake-Wiley, Boones attorney, and federal prosecutors declined to comment. He faces a max sentence of 35 years in prison. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Third, Lary and others acting on his behalf solicited relief funds from businesses that received grants under the Small Business Program. 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 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. Instead, Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.