Newton County Chairman Banes Indicted in $150K Land Deal Scam

ATLANTA, GA – Marcello Banes, Chairman of the Newton County Board of Commissioners, and Stephanie Lindsey, a real estate broker and attorney, are facing federal charges after being indicted by a grand jury for conspiracy to launder money stemming from wire fraud and honest services wire fraud. The case exposes a scheme to personally profit from a land deal intended to benefit the region, turning public office into a personal piggy bank.

U.S. Attorney Ryan K. Buchanan didn’t mince words, stating, “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.” The indictment alleges that Banes and Lindsey deliberately concealed their financial arrangement from the buyer, a company identified as “Company A,” in a calculated effort to enrich themselves. The feds say this isn’t just about money; it’s about a betrayal of the public’s faith.

The scheme dates back to 1999, when Jasper, Morgan, Newton, and Walton Counties formed a Joint Development Authority (JDA) to attract industry. In 2018, Company A showed interest in 40 acres of JDA land. Banes, representing Newton County on the JDA board, allegedly orchestrated a brokerage agreement between Company A and Lindsey’s CSL Realty Group. The deal promised CSL a $150,000 commission upon the land’s sale. Crucially, the indictment claims Banes and Lindsey intentionally misled Company A, making it appear the entire commission would go to Lindsey.

The dirty secret? Lindsey was allegedly going to pass the bulk of that $150,000 to Banes, contingent on the JDA approving the sale. Had Company A known Banes stood to benefit, they wouldn’t have signed the agreement, prosecutors say. On January 22, 2019, Banes voted to approve the land transfer, failing to disclose his financial stake. Company A finalized the purchase on March 1, 2019. Lindsey collected the $150,000 the following day and, according to the indictment, swiftly handed $100,000 to Banes through a newly created business entity. The money, prosecutors allege, went towards building a new house for Banes in Newton County.

But the alleged crimes don’t stop there. Lindsey is also facing two federal tax violations for filing false business deductions on her 2019 income tax return to cover up the $150,000 payment. And Banes is accused of lying to FBI agents during a 2023 interview about the whole affair. FBI Special Agent in Charge Keri Farley warned, “This indictment is a stern warning that anyone who violates our laws will be brought to face justice.” IRS Criminal Investigation Special Agent in Charge Demetrius Hardeman added, “This is a case of a public official breaking the public’s trust to enrich himself.”

The U.S. Attorney’s office has vowed to hold both Banes and Lindsey accountable. This case serves as a stark reminder that even those in positions of power are not above the law, and that exploiting public trust for personal gain will be met with federal prosecution. The investigation is ongoing, and Grimy Times will continue to follow this developing story.