Boone was the companys bookkeeper and wrote multiple checks to disburse the funds, records show. Larys last public address to his constituents delivered one last bombshell moment to his tenure. The indictment alleges that Smith stole more than $450,000 in Social Security Administration Northern District of Georgia 2023 FOX Television Stations, resignation went into effect at 10 a.m. Wednesday, he stole hundreds of thousands of dollars in COVID-19 relief. This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law.. Stonecrest residents that Jones talked to were outraged. The details of Boones plea deal are similar to the one Lary accepted. Richard B. Russell Federal Building His sentencing hearing has been set for May 2. Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. [SIGN UP: WSB-TV Daily Headlines Newsletter]. 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 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. For example, Lary used relief funds held by Visit Us to pay for an associates political advertising. 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. "There was never an interest on anybodys part to kick back or filter money back or any of that nonsense.". A Georgia Senator said he was unsurprised to hear about the indictment. Lania Boone, 60, pleaded guilty to a conspiracy charge for her role in a scheme to steal . Lary did not disclose he controlled these companies. Up to $10,000 reward now being offered in finding missing Georgia family man in Baton Rouge, Woman shot near DeKalb gas station; police say person cut her off, pulled out handgun, Forecast | Bright sunshine returns for the weekend, Metro Atlanta, north Georgia hit with widespread damage after storms produce powerful winds, Former Stonecrest mayor, bookkeeper plead guilty to theft of COVID relief funds, Ex-Stonecrest mayor pleads guilty to federal fraud charges, Stonecrest mayor, who is facing federal charges, says he will resign. The Internet address for the U.S. Attorneys Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga. 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. 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. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this.". "I ask that you measure me by the whole story," Lary said. Lary resigned a day before he pleaded guilty to concocting a fraud scheme to steal more than $650,000 in federal pandemic relief funds. Lary announced his resignation to the city on a Zoom call Tuesday. Former Assistant U.S. Attorney Trevor Wilmot previously prosecuted the case. The resolution also adopted a funding plan for most of Stonecrests relief funds. Share sensitive information only on official, secure websites. This case was investigated by the Federal Bureau of Investigation. Instead, prosecutors said Lary used the money to cover his own tax liabilities and pay off the mortgage on his lake house. Later in December 2020 and January 2021, Clarence Boone coordinated with Lary and Lania Boone to use $108,155.52 of relief funds to pay off the mortgage on Larys lakefront home in Macon, Georgia, and used more than $7,600 of relief funds to pay college tuition, a meal plan, books, and rent for Clarence Boones son. For more information on the Departments response to the pandemic, please visit https://www.justice.gov/coronavirus. Learn about careers at Cox Media Group. This material may not be published, broadcast, rewritten, or redistributed. The first is verse 22, "The stone rejected by the builders has become the corner-stone". 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 issued a statement to FOX 5 about the censure: "My frustrations have boiled over with this council. 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. . Lary is expected to be sentenced on July 13 at 10 a.m. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives. All rights reserved. Lary continued with the meeting after an IT tech fixed the problem. In Larys guilty plea, he admitted to making sure that Boone was hired as Municipal Resource Partners bookkeeper. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. Check back for details. "What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner. Jones tried to get a comment from Larys attorney after court, but he refused to make a statement. Shes the wife of Clarence Boone, the citys former economic development director who was fired as a result of investigations in the citys relief program. The judge says Larys actions were deplorable and rejected a defense request for Lary to avoid prison time. STONECREST, Ga. Former Stonecrest mayor Jason Lary has pleaded guilty to federal fraud charges just hours after resigning Wednesday. 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 population is now 60,000 with a budget of more than $13 million. DeKalb County then disbursed $6.2 million of these relief funds to Stonecrest. 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. 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. 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. The potential stakes are high for offenders who break new guidelines. By clicking Sign Up, I confirmthat I have read and agreeto the Privacy Policy and Terms of Service. Share sensitive information only on official, secure websites. 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. 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. One of the grants was to his church, which he awarded $150,000. The 45-minute Zoom call in which he announced his resignation was hacked and briefly displayed a video game and then a brief snippet of pornography. None the less, I will continue to serve the people of the great city of Stonecrest.". 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. Lary allegedly had the city improperly enter into a contract with a recently founded nonprofit, Municipal Resource Partners Corporation, to distribute the citys funds as a way to siphon money toward himself and cohorts. "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. Lary, 60, pleaded guilty in January to wire fraud, federal program theft and conspiracy to commit federal program theft. 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 plan also provided $5 million to the COVID-19 CARES Act Small Business Program (Small Business Program). Lary is due in court to answer for fraud allegations. 75 Ted Turner Dr. SW 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. 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. Sandra D. Smith has been arraigned on federal charges of wire fraud and theft of government funds. "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 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. Credit: Photo courtesy of Boston College Athletics, Former Stonecrest mayors accomplice pleads guilty to felony, Stonecrest councilwoman among candidates running to replace disgraced mayor, Jahmyr Gibbs: Georgia Tech helped make me who I am today, Georgia Tech closes regular season with win over Boston College. Ronald Bell, who conspired to extort money from Georgia Institute of Technology, has pleaded guilty to a charge of conspiracy to commit extortion. 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. "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. 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. For further information please contact the U.S. Attorneys Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. "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.". 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. 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. During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer. Now, the sheriff's office is hoping to reignite the search on this cold case. ", 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. 5, 2022.