COVINGTON, Ga. — On Thursday, a federal grand jury indicted the chairman of the Newton County board of commissioners and a newly-elected board member for alleged money laundering.
Chairman Marcello Banes and newly-elected but not-yet-sworn-in commissioner Stephanie Lindsey, both of Covington, are charged with allegedly conspiring to launder money obtained from wire fraud and honest services wire fraud. The case is being investigated by the FBI and IRS. Banes is also charged with allegedly lying to FBI agents during a 2023 interview, and Lindsey is charged with federal income tax fraud.
“By allegedly laundering proceeds obtained from a fraud conspiracy, these defendants violated the trust placed in them by their client, their constituents, and their fellow commissioners,” U.S. Attorney Ryan K. Buchanan said in a press release. “Public officials who undermine the public’s faith in our institutions by abusing their power for personal gain must be held accountable.”
Banes represented Newton County in a Joint Development Authority established in 1999 with Jasper, Morgan and Walton counties. The JDA was meant to "create an industrial area to attract industries to bring jobs and investment to the region," according to the release.
In 2018, a company referred to in the indictment as "Company A" expressed interest in purchasing about 40 acres of land from the JDA for commercial development. Banes allegedly coordinated a brokerage agreement between Company A and Lindsey --- who was a real estate broker and attorney at the time -- by which Company A would pay Lindsey’s CSL Realty Group $150,000 upon completion of Company A’s purchase of the land.
The indictment alleges that Banes and Lindsey misled Company A into believing that the commission was only intended for Lindsey, not revealing that she would pay most of the commission to Banes. At a JDA meeting in January 2019, Banes and the other board members voted to authorize the land transfer. Banes reportedly never revealed to the JDA that he would receive most of the commission paid to Lindsey.
Company A's purchase was finalized March 1, 2019. Neither Lindsey nor her company were present at the closing or referenced in the closing documents. Lindsey soon collected the payment and allegedly passed $100,000 on to Banes through a newly formed business entity they created. Banes used a substantial amount of the money to pay for a new house he was building, according to federal officials.
Lindsey was indicted for two federal tax violations for allegedly filing federal income tax returns for 2019, claiming false business deductions to reduce her liability for the $150,000.
Banes is accused of later lying to FBI special agents during a 2023 interview, allegedly telling the agency he was unaware of Lindsey's involvement in the land sale.
11Alive reached out to Banes who said he was "deeply disappointed" in the legal action taken.
"(I) look forward to clearing my name and demonstrating my good character," Banes' statement read. "With integrity and faith, I will deal with this legal matter and continue to work, honestly, for the citizens of Newton County. I am not going anywhere and deeply appreciate the support I am already receiving from family, friends, and the citizens of our county.”
Lindsey has not yet commented on the indictment. 11Alive will update this story once we receive one.