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. Official websites use .gov The city of Stonecrest could hold a special election as early as March to decide Larys replacement. Former Stonecrest mayor sentenced to nearly 5 years in prison for stealing COVID-19 relief funds. Lania Boone, a bookkeeper Lary hired for one of companies, admitted to helping the former mayor siphon CARES act money for personal use. Share sensitive information only on official, secure websites. Richard B. Russell Federal Building 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 about-face came in. 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. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Second, Lary told churches that received relief funds from the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary. 2023 Cox Media Group. Secure .gov websites use HTTPS 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 was arraigned in November 2021, accused of personally profiting from COVID-19 relief money. Lary directed $7,600 of the federal relief dollars to pay Boones sons college tuition and rent. A lock ( This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. February 21, 2022 Chris Butler. Lania Boone pleaded guilty to conspiracy to commit federal program theft on February 11, 2022. Around October 2021, the United States seized approximately $480,000 of fraud proceeds held in the bank accounts of Visit Us and Battleground Media. Cobbles term is set to expire in 2026, so another special election will be necessary. 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 expected to be sentenced on July 13 at 10 a.m. 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 resolution also adopted a funding plan for most of Stonecrests relief funds. 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. [SIGN UP: WSB-TV Daily Headlines Newsletter]. Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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. 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. 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. We are putting measures into place to prevent what we experienced during the meeting.. 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. Now, the sheriff's office is hoping to reignite the search on this cold case. . 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. 75 Ted Turner Dr. SW Former Stonecrest mayor pleads guilty to federal fraud charges Former Stonecrest mayor resigns and plead guilty to federal fraud charges. 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. Main Office: Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. Hopefully, he gets all of that, Morrell said. 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. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. A lock ( His sentencing is set for May 2. 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. 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. Small businesses that applied for financial relief were asked on an application form if theyd be willing to give 25% of the grant to one of three companies to market their business. 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. Lary resigned a day before he pleaded guilty to. "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.". She is scheduled to be sentenced on August 15, 2022. Lary, 59, was the first mayor of Stonecrest, a DeKalb County city of about . Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. Check back for details. Lary and Boone knew the purpose of the transfer was to pay off the mortgage on a lakefront home owned by Lary. A bookkeeper was also involved in the scheme and arraigned, records show. Lary previously pleaded not guilty to the charges, but his attorney, Dwight Thomas, indicated on Nov. 10 that he would take a plea deal. Suite 600 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.. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). 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. Channel 2s Audrey Washington called and emailed Stonecrest officials about the announcement and the hack. Hardworking people like us, Will Morrell said. The Atlanta Journal-Constitution was the only news outlet at the hearing. 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. "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. 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 .gov website belongs to an official government organization in the United States. Lary pleaded guilty to wire fraud, federal program theft, and conspiracy on January 5, 2022. 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. Suite 600 The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27. Lary announced his resignation to the city on a Zoom call Tuesday.. This station is part of Cox Media Group Television. 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. The rescue team said the man was buried up to his neck in soil. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. 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. 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. (FOX 5). The image comes from the ancient quarries where highly-trained stonemasons carefully chose the stones used in construction. His plea came the same morning his resignation as mayor of Stonecrest became official. The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. Learn about careers at Cox Media Group. Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to . In September 2020, Jason Lary, then the Mayor of Stonecrest, signed a resolution acknowledging these CARES Act requirements. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia
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