Friday, October 30, 2020

Former contracting official sentenced to two years in Atlanta corruption case


A former top Atlanta contracting official who admitted to being paid on the sly more than $220,000 over five years to help companies win government contracts — including with the city — will serve two years in prison.

At his sentencing in federal court Tuesday, Larry Scott was also ordered to pay $124,000 in restitution.

Scott, who managed contract compliance for the city, pleaded guilty in September to wire fraud and filing false tax returns. He’s the third high-ranking city official to plead guilty in the wide-ranging federal corruption probe of City Hall, which dates to at least mid-2015.

Scott operated a side business called Cornerstone U.S. Management Group that allegedly helped companies win government contracts. He did not disclose his side business to the city, even though he was required to report outside income, and federal prosecutors alleged Scott would have been fired had the city known of his conflict of interest.

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Also connected to Cornerstone were former Atlanta Mayor Kasim Reed’s brother and sister-in-law, Tracy and Crystal Reed. Neither of the Reeds have been implicated in the Scott case.

Three other people, including two construction company CEOs, have pleaded guilty in connection to the federal probe. The city’s former director of human services and a third contractor have been indicted, pleaded not guilty and await trial.

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