ATLANTA — The criminal trial involving suspended Newton County Chairman Marcello Banes and suspended Newton County District 3 Commissioner Stephanie Lindsey is being pushed back once again.
The U.S. Attorney’s Office confirmed to The Covington News on Monday that the trial has been pushed back to July 16. A reason for the postponement was not immediately provided.
Both parties were set to begin the trial on Wednesday, with pretrial conferences taking place as soon as last week.
This marks the third time the long-awaited trial has been pushed back. An original trial date was set for Jan. 27 before it was pushed back to April 21 in part due to new charges being brought forward. Then, the trial was pushed back another 30 days to May 20 on Feb. 23.
With the new trial date, the proceedings are set to take place over two years after a federal grand jury indicted the pair for a money laundering scheme over a land deal in Stanton Springs.
Banes, in his capacity as a member of the Joint Development Authority (JDA), and Lindsey – who acted in her capacity as a realtor of CSL Realty Group, coordinated a brokerage deal with an industry prospect in Stanton Springs who wished to purchase 40 acres of land in 2018.
The company, believed to be Prism Investments — but named “Company A” in court filings —- reportedly paid Lindsey $150,000 in commission following the sale. Prosecutors claim that $100,000 of this commission was then put into a mutual business entity called “LatReb Logistics LLC.”
It is alleged that this commission money was then obtained by Banes – who voted to approve the transaction in his role as a JDA board member on Jan. 22, 2019 – to put toward a new house. Prism Investments reportedly stated that they would not have gone through with the transaction had they known Banes would be receiving any of the commission.
Banes is also charged with lying to FBI agents in a 2023 interview, in which he reportedly told investigators that he was “unaware” that Lindsey was involved in the transaction.
Lindsey is accused of filing false tax returns. On July 7, 2020, Lindsey reportedly filed a U.S. Income Tax Return on behalf of CSL Realty Group for 2019 in the amount of $376 in yearly income. A few months later, Lindsey reportedly filed a U.S. Individual Income Tax Return for 2019, which reported her personal total taxable income of $107,478.
A year and a half following the original indictment, Banes was hit with several additional charges in a superseding indictment for allegedly defrauding the U.S. Small Business Administration.
Prosecutors claim that Banes obtained $65,000 in emergency funding from the government for LatReb Logistics. He reportedly received $49,900 in the form of an Economic Injury Disaster Loan (EIDL) as well as two supplements of $10,000 and $5,000 that he did not have to reimburse.
However, Banes allegedly misrepresented multiple portions of the application. This included the gross revenues and incurred costs of goods sold for the 12 months prior to Jan. 31, 2020.
It was also noted that Banes reportedly listed himself as owning 100% of LatReb. But prosecutors have consistently noted that Banes and Lindsey were engaged in an operating agreement in which Banes owned only 51% of the company, with Lindsey owning the other 49%.
Lindsey did not receive any new charges as a result of the superseding indictment.
Banes is charged with:
Money laundering conspiracy
Transactional money laundering
Concealment money laundering
Making false statements to a federal agent
False statements or entries generally
Making and subscribing a false tax return
Fraud by wire, radio or television
Theft of government funds
Lindsey is charged with:
Money laundering conspiracy
Transactional money laundering
Concealment money laundering
Making and subscribing a false tax return
Both have maintained their innocence and have pleaded not guilty.
Banes is represented by Emily C. Ward and Lynsey Barron Ward, LLC in Atlanta. Lindsey is represented by Brian Mendelsohn of the Mendelsohn Ertel Law Group LLC in Atlanta.
U.S. attorneys Brent A. Gray, Bret Hobson and Chloe Cobb Smith are representing the prosecution.
