Stonecrest Mayor Jason Lary announces resignation while under federal investigation
STONECREST, Ga. - Stonecrest Mayor Jason Lary has resigned while he faces federal charges accusing him of lying to obtain COVID-19 relief funds.
Lary announced his resignation during a Zoom meeting on Tuesday.
Lary's resignation will take effect on Wednesday morning.
"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 under charges that he stole hundreds of thousands of dollars in COVID-19 relief granted to the city.
Lary was censured by Stonecrest City Council members for "immature" remarks he made during a meeting.
"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."
Federal 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.
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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.
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"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 told the FOX 5 I-Team.
Lary has 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 mayor censured after 'inflammatory' remarks during council meeting
The Stonecrest mayor is at the center of another controversy for comments he made during a September meeting. Mayor Jason Lary made comments that offended some councilmembers, but Lary said he's frustrated with the council that he claims in tearing down his work in the city.
In a special-called meeting, members of the Stonecrest City Council voted 4-1 to censure Lary.
"What the mayor said was unacceptable and does not represent city council," said Mayor Pro Tem George Turner.
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."
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."
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.