ATLANTA – For the second time, the federal criminal trial against suspended Newton County Chair Marcello Banes and District 3 Commissioner Stephanie Lindsey has been pushed back.
A Feb. 23 court order from U.S. District Judge Leigh Martin May changed the start date from April 21 to May 20. The court order cites the reason for the push as a “conflict” with the April date from Lindsey’s camp. No details about Lindsey’s conflict were publicly available.
Banes and Lindsey’s trial was initially set to begin on Jan. 27, more than a year after the pair was federally indicted on money laundering charges.
According to the indictment, 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. The company, named “Company A” in court filings, reportedly paid Lindsey $150,000 in commission following the sale, of which $100,000 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 – to put toward a new house. “Company A” stated that they would not have gone through with the transaction had they known Banes would be receiving any of the commission.
Then, on Jan. 6, a superseding indictment was issued, adding new charges that alleget Banes defrauded the Small Business Administration.
Prosecutors say that Banes obtained $65,000 in emergency funding from the government through LatReb. 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, it was alleged that Banes 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 the company. 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%.
Attorneys for Banes and Lindsey filed a motion to sever the trials shortly after the superseding indictment. Lindsey – who did not receive any additional charges in the superseding indictment – argued that the jury would ‘no doubt struggle’ to distinguish her conduct from Banes.
Ultimately, the judge denied the motion to sever, but pushed back the original trial date.
Banes faces charges including 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 and theft of government funds.
Lindsey is charged with money laundering conspiracy, transactional money laundering, concealment money laundering and making and subscribing a false tax return.
Both have maintained their innocence and have pleaded not guilty.
