Former Stonecrest Mayor Jason Lary has been ordered back into federal custody, with a judge telling him to surrender by noon on Monday, March 16, so the government can take a closer look at his mental health. The move comes as courts try to sort out whether Lary was mentally competent when he attempted to qualify for a Stonecrest City Council seat while still under federal supervision after admitting he diverted COVID-19 relief funds.
Judge orders mental competency evaluation
At a hearing on Tuesday, U.S. District Judge Thomas Thrash Jr. said a private medical evaluation of Lary “raises substantial questions” about whether he understands the charges he faces. The judge ordered a full competency exam while Lary is in federal custody, according to the Atlanta Journal-Constitution. Lary’s attorney, Dwight Thomas, pushed for home confinement and outpatient treatment instead, telling the court, “He’s not a danger,” the paper reported.
Convicted in COVID-relief fraud
Federal prosecutors say Lary pleaded guilty on Jan. 5, 2022, to wire fraud, federal program theft and conspiracy after a scheme that steered Stonecrest CARES Act grants through private companies and funneled some of the money to his own use. The U.S. Department of Justice said he was sentenced in July 2022 to 57 months in prison and ordered to pay about $119,608 in restitution.
Indicted over qualifying paperwork
The legal trouble did not end with the federal case. In October, a DeKalb County grand jury indicted Lary on charges that include false registration, two counts of false swearing and making false statements tied to his notice of candidacy filing, prosecutors said. DeKalb County District Attorney Sherry Boston said her office opened an investigation after Lary’s voter registration and qualifying paperwork raised red flags, according to CBS Atlanta.
Prosecutors press to revoke supervision
On the federal side, prosecutors have asked the court to revoke Lary’s supervised release and send him back to prison, arguing that his move to qualify for office violated the terms of his supervision. That detention request will be resolved after the competency evaluation, the Atlanta Journal-Constitution reported. Prosecutor Garrett Bradford told the judge that Lary’s medical records describe “distortions in perception and judgment, manic episodes, loss of impulse control and fears of being attacked,” according to the paper.
What this means for Stonecrest
Lary’s status as Stonecrest’s founding mayor has kept the saga front and center at City Hall, even as new leaders try to move on. The steady drip of court hearings and new filings has complicated efforts to rebuild public trust in a city still relatively new to self-government. Hoodline previously covered the political fallout when Lary was booted from the 2025 council race, detailing how residents and local officials reacted.
Legal implications
The upcoming competency exam is a pivot point. If doctors find Lary unable to understand the proceedings or assist his attorneys, the federal court could order treatment and pause decisions on both the federal revocation effort and the state charges. If he is ruled competent, the supervised-release revocation case in federal court and the DeKalb County indictment could move forward on separate tracks. The federal position has been laid out in filings and a public statement from the U.S. Department of Justice. DeKalb prosecutors’ stance has been described in statements and court records covered by CBS Atlanta.
