Ex-Atlanta Compliance Officer Pleads Guilty To Wire, Tax Fraud

ATLANTA — Larry Scott pleaded guilty on Wednesday to wire fraud for failing to disclose to the city of Atlanta that while he served as its director of contract compliance, he also served as the business manager for a consulting firm seeking contracts in metro Atlanta. Scott also failed to report on his taxes the majority of the income earned from the consulting firm.

“Larry Scott betrayed the citizens of Atlanta by failing to disclose that when he served in an executive level position with the city of Atlanta, he was simultaneously working for a consulting firm for businesses who sought contracts in metro-Atlanta,” said U.S. Attorney Byung J. “BJay” Pak. “Scott’s divided loyalty undermined the integrity of the office he served at the city of Atlanta.”

“Deceitful and self-indulgent people have no place in public office at any level of government,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Today's plea doesn't mean our work is done, the FBI and our partners remain committed to ending public corruption in Atlanta and the Georgia community.”

From 2002 to 2019, Scott held several positions with the city, earning between $57,000 and $98,000 per year. From 2012 to 2017, Scott earned approximately $530,000 as a city employee.

On February 23, 2011, Scott incorporated Cornerstone U.S. Management Group as a for-profit corporation. Cornerstone is a consulting firm for businesses seeking contracts in metro Atlanta and elsewhere. Cornerstone listed Scott as its organizer and registered agent, and from 2012 to November 2017, Cornerstone paid Scott between $1,000 and $5,000 per month. From 2012 to 2017, Scott earned approximately $220,000 as Cornerstone’s business manager.

From 2012 to 2017, Scott electronically filed six false financial disclosure statements, each executed under penalty of perjury. On each statement, Scott failed to disclose that he had been employed by Cornerstone and that he had received more than $5,000 in annual income from Cornerstone. From 2012 to 2017, Scott also filed six false federal income tax returns, failing to report the majority of the income that he earned from Cornerstone.