Former Stonecrest Mayor Jason Lary pleads guilty to federal fraud charges

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

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

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

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

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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