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A former mayor of a Georgia city was sentenced to prison for stealing hundreds of thousands of dollars in COVID-19 relief funds, the Justice Department announced on Wednesday.
Jason Lary, the 60-year-old former mayor of Atlanta suburb Stonecrest, used his office to obtain federal funding meant for small businesses and public health expenses during the early days of the pandemic.
The Justice Department said Georgia's DeKalb County gave Stonecrest a $6.2 million grant, which was eventually redirected into private companies formed by Lary.
"Lary betrayed the trust placed in him by the citizens of Stonecrest by stealing the very funds meant to help his constituents weather the COVID-19 pandemic," US Attorney Ryan Buchanan said in a statement.
He continued: "The people of Stonecrest deserved better, and corrupt officials can expect severe consequences for using their offices to commit crimes."
Lary pled guilty in January to conspiracy, wire fraud, and federal program theft.
He was sentenced to four years and nine months in prison, followed by three years of supervised release, and ordered to pay nearly $120,000 in restitution.
"This sentencing holds Lary accountable for abusing his position of trust and blatant disrespect for the law," FBI special agent Keri Farley said in a statement.
In the past few years, federal aid programs have become a ripe target of fraud and criminal schemes to misappropriate funds that were intended to help some of the most hard-hit Americans and small businesses during the COVID-19 pandemic.
The Department of Labor Office of Inspector General estimated that at least $163 billion were paid improperly "with a significant portion attributable to fraud," according to the agency's report from March 17. Just $4 billion have been reclaimed by the US, The Washington Post reported.
Another study conducted last year by the University of Texas's Department of Finance found that around $76 billion could have been improperly taken out of the $800 billion in loans provided by the Paycheck Protection Program.
Federal authorities have made efforts to clamp down on fraudulent unemployment claims.
By March 26, 2021, the Justice Department charged 474 people for fraud claims that amount to over $569 million.
In June, 19 people were charged by the DOJ for their alleged involvement to steal over $24 million in COVID-19 relief funds.
Weeks later, federal authorities announced that a Los Angeles rapper Fontrell Antonio Baines, who goes by Nuke Bizzle, pleaded guilty to fraud after making 92 Pandemic Unemployment Assistance claims that resulted in losses of over $700,00 and attempted losses of about $1.25 million.
This story is developing. Please check back for updates.
