Former Stonecrest mayor sentenced to 57 months in prison for COVID relief fraud scheme

STONECREST, Ga. - The former Mayor of Stonecrest will spend more than four years in prison for stealing COVID-19 relief funds that were supposed to go to struggling businesses. 

A federal judge sentence Jason Lary, whose resigned from his position as mayor in January, to 57 months in prison Wednesday for three counts involving wire fraud, theft of government funds, and conspiracy.

In court, Lary admitted stealing nearly $1 million in relief money by requiring needy Stonecrest churches and businesses to kick back a portion of their grant money to companies he controlled. 

The former mayor was arraigned in November 2021, accused of concocting a scheme to divert funds from the Coronavirus Aid, Relief and Economic Security (CARES) Act.

FORMER MAYOR ADMITS ROLE IN COVID RELIEF FRAUD SCHEME

Former Stonecrest Mayor Jason Lary is met by FOX 5 I-Team Reporter Randy Travis as he walks into the federal courthouse in Atlanta to enter a guilty plea to stealing CARES Act money on Jan. 5, 2022. (FOX 5)

As mayor, federal authorities say he took control of who received $6.2 million in CARES Act money and worked behind the scene wish an organization known as Municipal Resource Partners Corporation, Inc. ("MRPC") to disburse the funds. .

Lary asked potential recipients to kickback 25% of their grant to other companies for "marketing" purposes. Lary did not disclose he controlled these companies.

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.

Jason Lary admitted he stole more than $650,000 in CARES Act money that was supposed to help struggling businesses and church. (Art by Richard Miller)

STONECREST MAYOR JASON LARY RESIGNS DAY BEFORE FEDERAL COURT DATE

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.

The government said no marketing was ever done.

Assistant U.S. Attorney Trevor Wilmot told the court used the money to pay off his taxes going back to 2015 and to pay off a $100,000 mortgage on his lakefront home in Macon. 

Wilmot said Lary used some of that stolen money to pay off the $108,147 mortgage on his lakefront home in Macon. He also settled income taxes he owed going back to 2015.

FORMER STONECREST MAYOR ADMINS ROLE IN COVID RELIEF FRAUD SCHEME

A former health care executive, Lary was instrumental in convincing the Georgia General Assembly to create the city of Stonecrest along Interstate 20.

Now the population is around 60,000 with a city budget of more than $13 million.

Lary won the mayor’s race twice, making him the city’s only mayor in its brief history before he resigned. Former Stonecrest city councilwoman Jazzmin Cobble was sworn in as mayor in June.