Former city of Atlanta official pleads guilty to federal charges

ATLANTA (FOX 5 Atlanta) - A former top-ranking official at Atlanta City Hall pleaded guilty Wednesday to federal charges of wire fraud and tax evasion.

The plea of Larry Scott is the latest development in the ongoing investigation into alleged corruption at Atlanta City Hall.

Earlier in the day, the U.S. Attorney's Office announced they had filed charges against Scott who resigned his position last week as Director of the City's Office of Contract Compliance.

The charge states Scott set up an outside consulting company called Cornerstone Management Group where he made "$220,000 as cornerstone's business manager" between 2012 and 2017.

But Scott never disclosed the job or the money to the city as required by city code, according to the charge.

FOX 5 I-Team Senior Reporter Dale Russell reports Cornerstone U.S. Management Group was formed by Scott and Crystal Reed, who is the wife of former Atlanta Mayor Kasim Reed's brother Tracy.

Tracy Reed first shows up on the Cornerstone U.S. Management corporate records in 2013 as an Agent.

The criminal charge also states Scott "filed six false and fraudulent federal income tax returns" when he failed to report the majority of the money he earned from Cornerstone.

After the plea hearing at the Richard B. Russell Federal Building in downtown Atlanta, U.S. Attorney BJay Pak told reporters Scott is cooperating fully with investigators including providing any information he has about Cornerstone Management.