Former Stonecrest Mayor Jason Lary pleads guilty to federal fraud charges
Former Stonecrest Mayor pleads guilty in federal court
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.
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.
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.
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.
STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE
His sentencing is set for May 2.
Lary is free on bond.
FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME
Stonecrest could hold a special election to fill the vacant mayor's seat as early as March.
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Stonecrest's first mayor Jason Lary resigns
I-Team: Stonecrest mayor quits day before he answers federal fraud charges
By Randy Travis Published January 4, 2022 7:37PM STONECREST, Ga. - The only mayor in Stonecrest's brief history is calling it quits, one day before he’s due back in federal court on COVID relief fraud charges. Jason Lary did not mention his criminal troubles during a 45-minute speech, a final official appearance over Zoom marred by hackers calling for him to be jailed. "I’m proud to be the visionary," he said. "I’m proud to be the leader." City of Stonecrest looking for new mayor after Jason Lary's resignation The speech was delivered as a victory lap for Stonecrest mayor Jason Lary, to celebrate the accomplishments of DeKalb’s largest city, one that only came to life five years ago after Lary and others pushed relentlessly for its creation. Stonecrest has a population of 60,000 people, 96% of them Black. The city has grown quickly, with a current budget of $13.5 million. "I did the best that could with the abilities that God gave me," Lary told his virtual audience. But federal prosecutors say Lary gave himself something he didn’t deserve: more than $650,000 in COVID relief money that was supposed to go to prop up struggling businesses and churches in the city of Stonecrest. Overall, the city received $6.2 million in relief money that Lary then doled out in grants. Authorities say Lary insisted some of the groups he selected had to kick back a portion of their relief money to companies he secretly controlled. Other Georgians are being prosecuted for similar crimes. Last year, Lary pled not guilty. But Wednesday morning he’s due back in federal court for a change of plea hearing, one hour after his resignation becomes effective. "I ask that you measure me by the whole story," Lary said. "I did what we could with what we had in place." He did not mention his criminal case. Dr. Diane Adoma ran against Lary in the last mayoral race and was a regular critic of the mayor while on city council. She said she does not wish any harm on Lary or his family. But she says it’s time for government accountability. "Today is a good and a bad day," Adoma said. "Today is a good day because he is going to step down. Whether by choice or not he’s stepping down. So that makes it a good day. It’s a bad day because Stonecrest is tainted with being such a new city with so many resources in our backyard. And yet we have not been able to vote in the right leadership that we need to take us to a higher level." Lary took no questions during his virtual speech. Several times hackers interrupted with pornography, loud music and other distractions, one posting a graphic calling for Lary to be jailed. Lary says he’s also battling cancer for the third time and has other serious health issues. FULL STORY: https://www.fox5atlanta.com/news/stonecrests-only-mayor-quits-day-before-he-faces-federal-fraud-charges
Lary announced his resignation during a Zoom meeting on Tuesday.
"It's time for me to retire from politics and focus on my health," Lary said.
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.
"I ask that you measure me by the whole story," Lary said. "I did the best I could do with what we had in place."
Fraud investigation of Stonecrest Mayor Jason Lary
Stonecrest mayor accused of misusing COVID-19 relief money
The U.S. Attorney's Office alleges Mayor Jason Lary misused $6.2 million in COVID-19 relief funds. A Georgia Senator said he was unsurprised to hear about the indictment.
Lary was arraigned in November 2021, accused of personally profiting from COVID-19 relief money.
The relief funds were designed to cover costs during the public health emergency. 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.
STONECREST MAYOR RESPONDS TO ACCUSATIONS OF CARES ACT FUNDS MISUSE
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.
In another case, Lary allegedly gave a church $50,000. 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.
STONECREST CITY COUNCIL VOTES TO CENSURE MAYOR AFTER ‘IMMATURE’ PUBLIC REMARKS
"Lary allegedly abused the power and trust conferred on him as Mayor of Stonecrest to steal hundreds of thousands of dollars intended for COVID-19 relief," said Acting U.S. Attorney Kurt R. Erskine. "Instead of providing aid to Stonecrest’s deserving citizens, Lary allegedly diverted funds for his own use, including to pay off his taxes and the mortgage on his lakefront home."
Erskine told the FOX 5 I-Team he is accused of pocketing more than $650,000.
"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.
Lary previously denied the accusations of fraud.
"Quite frankly folks, now it’s turned ugly," he said during a news conference in April 2021. "There was never an interest on anybody’s part to kick back or filter money back or any of that nonsense."
Lary is due in court to answer for fraud allegations.
Stonecrest Mayor Jason Lary censured for ‘immature’ comments
Stonecrest City Council discusses conduct guidelines
The potential stakes are high for offenders who break new guidelines. The discussion comes after the censure of Stonecrest's mayor for comments he made during a meeting.
In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary.
The censure stemmed from remarks Mayor Lary made at the end of a council meeting on Sept. 27.
"If you don't know protocol, you better learn it with me," said Lary. "You don't recognize Mayor Pro Tem and council and just leave me standing there like I'm not in the meeting. I will show you my hairy behind next time it happens and that's the only warning I'm going to give with this."
"What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner.
Lary issued a statement to FOX 5 about the censure:
"My frustrations have boiled over with this council. They are purposely seeking to tear down everything I have worked to build in Stonecrest. While I was out on cancer leave, they removed me from every committee I created, refused to pay my car allowance, while paying six figures to the finance director and $209,000 annually to the acting city manager (including a car allowance). None the less, I will continue to serve the people of the great city of Stonecrest."
Jason Lary announced cancer diagnosis
I-Team: Stonecrest mayor quits day before he answers federal fraud charges
By Randy Travis Published January 4, 2022 7:37PM STONECREST, Ga. - The only mayor in Stonecrest's brief history is calling it quits, one day before he’s due back in federal court on COVID relief fraud charges. Jason Lary did not mention his criminal troubles during a 45-minute speech, a final official appearance over Zoom marred by hackers calling for him to be jailed. "I’m proud to be the visionary," he said. "I’m proud to be the leader." City of Stonecrest looking for new mayor after Jason Lary's resignation The speech was delivered as a victory lap for Stonecrest mayor Jason Lary, to celebrate the accomplishments of DeKalb’s largest city, one that only came to life five years ago after Lary and others pushed relentlessly for its creation. Stonecrest has a population of 60,000 people, 96% of them Black. The city has grown quickly, with a current budget of $13.5 million. "I did the best that could with the abilities that God gave me," Lary told his virtual audience. But federal prosecutors say Lary gave himself something he didn’t deserve: more than $650,000 in COVID relief money that was supposed to go to prop up struggling businesses and churches in the city of Stonecrest. Overall, the city received $6.2 million in relief money that Lary then doled out in grants. Authorities say Lary insisted some of the groups he selected had to kick back a portion of their relief money to companies he secretly controlled. Other Georgians are being prosecuted for similar crimes. Last year, Lary pled not guilty. But Wednesday morning he’s due back in federal court for a change of plea hearing, one hour after his resignation becomes effective. "I ask that you measure me by the whole story," Lary said. "I did what we could with what we had in place." He did not mention his criminal case. Dr. Diane Adoma ran against Lary in the last mayoral race and was a regular critic of the mayor while on city council. She said she does not wish any harm on Lary or his family. But she says it’s time for government accountability. "Today is a good and a bad day," Adoma said. "Today is a good day because he is going to step down. Whether by choice or not he’s stepping down. So that makes it a good day. It’s a bad day because Stonecrest is tainted with being such a new city with so many resources in our backyard. And yet we have not been able to vote in the right leadership that we need to take us to a higher level." Lary took no questions during his virtual speech. Several times hackers interrupted with pornography, loud music and other distractions, one posting a graphic calling for Lary to be jailed. Lary says he’s also battling cancer for the third time and has other serious health issues. FULL STORY: https://www.fox5atlanta.com/news/stonecrests-only-mayor-quits-day-before-he-faces-federal-fraud-charges
During a struggle to implement new city manager, Lary said he was facing what could be his third battle with cancer.
He explained he needs to take some time to work with doctors and care for himself.
"I came back too early from my second round with cancer. I should've stayed out for several months, but circumstances prevailed where I needed to come back earlier," Lary said.
He said he had surgery in late December 2020. He declined to say what type of cancer he is battling but said it seems to be resurfacing for the third time.
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