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.
Per federal rules, Stonecrest officials could only spend these relief funds on necessary expenditures related to the pandemic that occurred between March 2020 through December 2020. They include medical and public health expenses, as well as grants to reimburse businesses for lost business during COVID-19.
Jason Lary is the former mayor. Lania Boone was the bookkeeper.
“In September 2020, Lary, as mayor, signed a resolution acknowledging the CARES Act requirements and adopting a funding plan for Stonecrest’s relief funds. The plan provided $1 million to the Stonecrest Cares Program for mask distribution, COVID-19 education and testing, and other purposes. In practice, the Stonecrest Cares Program directed relief funds to churches and non-profit organizations in and around Stonecrest. The plan also provided $5 million to the COVID-19 CARES Act Small Business Program (‘Small Business Program’). Stonecrest did not disburse the $6 million allocated to the Stonecrest Cares Program and Small Business Program,” according to a statement from the U.S. Attorney’s Office for the Northern District of Georgia.
“Instead, the city contracted with Municipal Resource Partners Corporation, Inc. (“MRPC”) to provide accounting services and to disburse the relief funds as directed by Stonecrest. Before the contract was signed, Lary worked behind the scenes to form MRPC, recruit its CEO, open its bank accounts, and ensure that Lania Boone would be hired as MRPC’s bookkeeper.”
In November 2020, Stonecrest officials published an application on its website for businesses to apply for relief funds under the Small Business Program. The application included the question, “are you willing to allocate 25 percent of your grant to marketing your business?” Hundreds of businesses applied for relief funds, but most of the applicants got rejected. From about November 2020 until February 2021, Boone signed dozens of checks on behalf of MRPC, directing millions of dollars of relief funds to individuals, businesses, churches, and non-profit organizations. Lary helped decide who received the relief funds.
“Abusing the authority conferred on him as mayor, Lary devised and executed a scheme to steal relief funds after they were distributed by MRPC. First, Lary told churches that received relief funds under the Stonecrest Cares Program that they were required to contribute a portion of those funds for purposes identified by Lary,” according to the U.S. Attorney’s statement.
“For example, Lary presented a check for $150,000 in relief funds to ‘Church 1,’ on the condition that $50,000 be given to a company called Real Estate Management Consultants, LLC (‘REMC). Lary did not tell Church 1 at this time that he actually controlled REMC. 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, Lary used the money for his own purposes, including to pay off his outstanding federal, state and local tax liabilities.
“As another example, Lary presented a check from MRPC for $50,000 to ‘Church 2.’ Later, a person acting on Lary’s behalf told Church 2 to contribute $4,500 of the relief funds to REMC, purportedly for rent assistance. Lary spent the money to pay his own property expenses and his dues to the Georgia Campaign Finance Committee.”
Lary also solicited relief funds from businesses that received grants under the Small Business Program. Lary, court officials went on to say, falsely claimed that the money would be each business’s contribution to Stonecrest-related marketing and advertising.
“But Lary and others asked that these ‘contributions’ be given not to Stonecrest, but to entities called Visit Us, Inc. and Battleground Media, LLC. Lary did not tell the businesses that he controlled these entities,” U.S. Attorney’s said.
“In total, businesses were defrauded out of hundreds of thousands of dollars of relief funds. Lary used the relief funds deposited into the Visit Us and Battleground Media accounts to benefit himself and others. For example, Lary used relief funds held by Visit Us to pay for an associate’s political advertising.”
The former mayor also conspired with Boone, MRPC’s bookkeeper, to steal relief funds before they were disbursed by MRPC, according to the U.S. Attorney’s Office.
Lary faces sentencing in is scheduled for sentencing in May.
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Chris Butler is an investigative journalist at The Tennessee Star and The Georgia Star News. Follow Chris on Facebook, Twitter, Parler, and GETTR. Email tips to [email protected].
Photo “Jason Lary” by Mayor Jason Lary.
I’m shocked, absolutely shocked! /sarc