https://www.ajc.com/news/crime/2-newton-commissioners-indicted-on-federal-money-laundering-charges/HVEZ5N2I4JDWLBJCXGBL6Z35LM/

The chairman of the Newton County Board of Commissioners and a local real estate agent recently elected to the board have been indicted by a federal grand jury on money laundering charges related to an allegedly corrupt real estate deal.

Marcello Banes, 48, and Stephanie Lindsey, 52, were each charged with conspiring to launder money obtained by wire fraud and honest services wire fraud, U.S. Attorney for the Northern District of Georgia Ryan K. Buchanan announced Thursday.

Banes, an ordained minister, was elected to the Newton Board of Commissioners in 2016 and is the board’s first Black chairman, according to the county’s website. Lindsey is a lawyer and real estate broker who was elected as commissioner of Newton’s District 3 on June 18, ousting incumbent Alana Sanders.

The U.S. Department of Justice has accused Banes of using his position to influence the sale of a parcel of commercial property and taking a kickback from Lindsey. Lindsey received a $150,000 payment after the property sale but sent $100,000 of it to Banes, Buchanan said.

“Public officials who undermine the public’s faith in our institutions by abusing their power for personal gain must be held accountable,” Buchanan said in a statement Thursday.

In a statement to The Atlanta Journal-Constitution, Banes denied the DOJ’s allegations.

“I am deeply disappointed in the legal action taken today and look forward to clearing my name and demonstrating my good character,” he said. “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 also responded to the indictment, saying she looks “forward to the truth coming out in court. That truth is, as an attorney and a public servant of this county, I would not knowingly break any law.”

The key to the fraud was Banes’ position on the board for the Joint Development Authority (JDA) of Jasper, Newton, Morgan and Walton counties, according to the DOJ.

The JDA was established to create an industrial area between the four counties in order to attract more investment to the region; it is the entity that negotiated the land agreement for Rivian’s $5 billion electric vehicle factory last year. Rivian has since paused development of the factory, and the electric vehicle manufacturer is not involved in the DOJ’s case against Banes and Lindsey.

The JDA’s board of directors consists of two representatives from each county involved, and Banes was one of the representatives for Newton.

In 2018, a company listed in the indictment only as “Company A” showed interest in buying 40 acres of land belonging to the JDA, Buchanan said. Banes responded to Company A and set up a brokerage agreement between the company and Lindsey. Company A agreed to pay Lindsey $150,000 upon the completion of the sale, which required the JDA’s approval.

According to Buchanan, the company’s representatives did not know that Banes was going to receive a kickback from Lindsey and would not have agreed to the deal if they’d found out.

In January 2019, Banes voted along with other JDA members to sell the parcel to Company A, the DOJ said. Banes never told anyone at the JDA that Company A had agreed to pay Lindsey upon the completion of the deal, per the indictment.

When the sale was finalized, neither Lindsey nor her company were mentioned in the closing documents, and Lindsey was not present at closing, Buchanan said.

According to the DOJ, Lindsey contacted Company A the day after the deal closed to collect the $150,000 payment. She then passed $100,000 of the payment to Banes through a newly created business entity, and Banes used most of the money on a new house he was building, Buchanan said.

During the FBI’s investigation of the deal in 2023, Banes allegedly lied to the agents interviewing him, Buchanan said. The indictment announced Thursday charges Banes with making false statements to the FBI, in addition to his other charges.

Lindsey was also charged with federal income tax fraud, Buchanan said.

In a statement, the JDA distanced itself from the indictment, claiming it was “not a party to the transaction” described in the indictment and was not aware of any illegal activity on the part of Banes or Lindsey.

The JDA’s statement said it did approve a resolution in January 2019 to transfer a 40-acre property to Stanton Springs, LLC, but that the illegal activity alleged in the indictment took place two months later, when Stanton Springs LLC sold the property to Company A.