State Auditor Shad White said in a statement released Sunday, Tomorrow morning I am heading to FBI offices where my agents and I will brief them on the DHS scheme and make all the evidence we have gathered available. Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. A former top state official in Mississippi pleaded guilty Thursday to state and federal charges in connection to an embezzlement scheme that auditors say misused millions of welfare dollars,. Their own outcome reports that they sent the state each month, which were meant to show how many people they served, contained nonsensical figures, Mississippi Today first reported. Follow him on Twitter @gbolognaCL. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Phil Bryant and other officials in his home state in order to influence roughly $8 million in welfare payments for himself, pharmaceutical company Prevacus, and a volleyball court for the University of Southern Mississippi, according to an expose published last week Mississippi Todaythough Favre has not been charged criminally or accused of a crime. (WLBT) The total amount of money lost to these schemes has not yet been determined, but the loss already exceeds any embezzlement . The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. The indictments were filed under seal in Hinds County, Reeves said. Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. Look for the "Republish This Story" button underneath each story. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. The indictments, which were returned by a Hinds County grand jury, include a range of violations involving fraud and embezzlement, White said in a news release. Jones said as a result of the lost funding, 100 Black Men had to cancel some upcoming afterschool and ACT prep programs, but that they would continue other services, such as administering vaccines and a student field trip to Alabama. I said well what is the reason? The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. What it looks like is that one side of the story is being put out there, Wooten said. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. There was an error and we couldn't process your subscription. Here is what we know about them: John Davis was appointed director of DHS by former Gov. We work to find them. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. The former director of Mississippis welfare agency was arrested on charges that he took part in a scheme to embezzle millions of dollars for personal use and to pay for a former professional wrestler to go to a luxury drug rehabilitation center, the state auditor announced on Wednesday. Mississippi's former welfare director, four colleagues and a former pro wrestler have been charged with carrying out a multimillion-dollar embezzlement scheme to siphon public money from needy. Nancy New and her son, Zach New, stand accused of using the News nonprofit, MCEC, to pay for DiBiases drug treatment using TANF funds, White said. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. HINDS COUNTY, Miss. The two nonprofits ran an anti-poverty program called Families First for Mississippi, through which most of the money that was allegedly stolen, $4.15 million, or potentially misspent, $94 million, flowed. What is the extent of the relationship between Tate Reeves and the News, mother and son? We confirmed that it was John Davis who was making those approvals on the money. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. The state auditors office said it would not be making any additional comments. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. The first announcement of the arrests was apparently made on the website of the (Brookhaven, MS) Daily Leader at 4:51 p.m. Wednesday, Feb. 5. He said I'm going to call your supervisor and I need you in the meantime I need you to go back into the classroom and get your property and get out of my classroom right now, said Johnson. Advertise with Us. We prefer Author Name, Mississippi Today in the byline. Brett DiBiase was a former professional wrestler with World Wrestling Entertainment,who later worked at DHS as the deputy director of transformational change, according to his LinkedIn page. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England. Looking for something special to get your mom for Mothers Day? . An accountant involved in a a major embezzlement scheme has pleaded guilty to her role in a staggering theft of welfare money in Mississippi, the poorest state in the U.S. Hinds County Circuit. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. Nancy New was the owner and director of the Mississippi Community Education Center and New Learning, Inc. She also founded New Summit, a private school in Jackson. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. Any amount helps us keep producing quality journalism for Mississippi. The agency expects to soon file civil charges against Davis and others who received the funds. We did reach out to Davis attorney Merrida Coxwell for comment. But their counsel argued that a broader order that prevented White and Anderson from discussing Davis tenure overall such as policies, procedures and events separate from the criminal charges would be too restrictive and prevent them from being transparent with the public about ongoing investigations and findings. She also received first place in the regional Green Eyeshade Awards in 2021 for Public Service in Online Journalism and 2020 for Business Reporting, and the local Bill Minor Prize for Investigative Journalism in 2019 and 2018 for reporting on unfair medical billing practices and hunger in the Mississippi Delta. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. I dont care how politically connected a person may be, Mr. White said. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. We hear from a former employee who is just one of many who were fired by Davis. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. For example, the people in charge of spending welfare dollars paid $5 million to help University of Southern Mississippi build a new volleyball stadium, paid retired NFL quarterback Brett Favre $1.1 million for a promotional gig, bought a horse ranch for former high school running back Marcus Dupree, paid over $3 million to Brett DiBiases brother Ted DiBiase Jr., also a retired WWE wrestler, to conduct professional development, hired officials friends and family members and paid them six-figure salaries, and paid rents on properties they owned that sat empty. According to a Mississippi Today review of public records, the agency sent out 110 letters during roughly the last year under Anderson compared to four letters in fiscal year 2019 under Davis. Much more remains to be revealed, including questions such as: Johnson returned to the office, but the next day when he came into work, he got the news. - The former head of the Mississippi Department of Human Services has been arrested as part of a multimillion-dollar embezzlement scheme that among other things paid . We believe that an informed Mississippi is a better Mississippi. The audit released less than a year later said that according to its budget, Victory Sports used the nearly $1.4 million welfare subgrant to pay for staff and coaches, a program design fee, equipment, an onsite nurse, marketing and other administration costs, and to purchase a $20,000 trailer and a $70,000 vehicle. Copyright 2020 WLBT. MDHS discusses largest embezzlement scheme in state history, upcoming policy changes, Beloved Mississippi school bus driver killed during crash with 18-wheeler, Eleven players with Mississippi ties selected in 2023 NFL Draft, Truck possibly connected to Hinds County jail escape found in Newton County, Paraplegic fisherman speaks to Beulah Baptist Church, Belhaven football puts a smile on the face of little girl, City of Byram awarded thousands of state dollars for infrastructure projects, 58-year-old man shoots brother after argument over a dog in Hazlehurst, Request a First Alert Weather School Visit, Advertising Non-Discrimination Certification. Gov. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to email a link to a friend (Opens in new window). Uncovering the scheme goes back further than you may realize. Attempts to reach the sheriff's office for booking information were not successful. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. Look for the "Republish This Story" button underneath each story. By the time these meetings occurred in April, July and August of 2020 former welfare department director John Davis, who was indicted last year for his critical role in the alleged scheme, had been retired for about a year. It ends today.. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. Any chance you and Nancy can help with that? MDHS Embezzlement Part 1: Charges and evidence Editor's Note: This is Part 1 of a three part series NEMISS.NEWS will publish regarding the matter the state auditor has called the biggest embezzlement of public funds in Mississippi history. The community action agency did not return calls to Mississippi Today Tuesday morning. JACKSON, Miss. Uncovering the scheme goes back further than you may realize. He then earned a Doctor of Laws degree from Harvard University. Anna has received national recognition for her work, including the 2021 Goldsmith Prize for Investigative Reporting, the 2021 Collier Prize for State Government Accountability, the 2021 John Jay/Harry Frank Guggenheim Excellence in Criminal Justice Reporting Award, the 2020 Al Neuharth Innovation in Investigative Journalism Award and the February 2020 Sidney Award for reporting on Mississippis debtors prisons. Anyone can read what you share. Johnson said, "she said well I did speak with Mr. Davis and he asked for you to be terminated. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). Up to $70 million was misspent in the scheme, according to Mississippi Today. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. Nonprofits made most of these purchases, which obscured the spending from public view. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. You can only publish select stories individually not as a collection. If youre not able to add the byline, please include a line at the top of the story that reads: This story was originally published by Mississippi Today and include our website, You cannot republish our editorial cartoons, photographs, illustrations or graphics without specific permission (contact our managing editor. Editor's Note: This is Part 1 of a three part series NEMISS.NEWS will publish regarding the matter the state auditor has called the biggest embezzlement of public funds in Mississippi history. Nancy New and her son, Zach New, stand accused of using the News nonprofit, MCEC, to pay for DiBiases drug treatment using TANF funds, White said. Also arrested were Brett DiBiase, a former professional wrestler; Nancy New, owner and director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.; News son, Zach New, assistant director of MCEC; Anne McGrew, identified as an accountant for MCEC, and Gregory Latimer Smith, a former employee of MDHS. We do appreciate the partnership with Victory Sports and Pauls work. Please reload the page and try again. The funds mostly came from a federal welfare grant program administered by the Mississippi Department of Human Services, and both the head of the nonprofit and the former head of the MDHS have. There was an error and we couldn't process your subscription. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. As a subscriber, you have 10 gift articles to give each month. Newly unearthed text messages show Favre at the center of a scandal dating back to 2020, when a political appointee of the governor and nonprofit head, among others, were arrested for misusing federal welfare funds, some of which benefitted Favre personally as well as causes with which he was involved. Paul Lacoste did not return calls Tuesday morning. Auditor:State agencies must improve when it comes to cybersecurity. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. Phil Bryant's office in June 2019. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. . Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. and I told him I was fine with it, you know that I was okay. Davis was appointed executive director of the Mississippi Department of Human Resources by then-Governor Phil Bryant in January, 2016. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. We believe that an informed Mississippi is a better Mississippi. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. The Hinds County District Attorney secured an indictment on December 14, 2021. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. 0:53. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. MDHS self-reported the. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. Phil Bryant in January 2016. If youre thinking of altering your workout routine, youre probably looking for new exercises and equipment to help you reach your fitness goals. By clicking submit, you agree to share your email address with Mississippi Today. Photo gallery: Equestrian program at Mississippi College, Nurse recounts horrors inside a Yazoo City nursing home, Coverage of Mississippis sprawling welfare scandal, Creative Commons Attribution-NoDerivatives 4.0 International License, Proudly powered by Newspack by Automattic. I'm the Executive Director. And they did start an internal audit at the beginning of 2019. Wooten said it appears as if the officials are attempting to try Davis case in the media. On Tuesday, Hinds County Circuit Court Judge Adrienne Wooten spoke strongly in defense of a gag order in the case of former welfare director John Davis, saying that media coverage of the scandal threatens the courts ability to assemble an impartial jury. Check out these great suggestions. This inability to validity MCECs records is further complicated by the fact that the principals of MCEC are currently under indictment and essentially unavailable to MDHS to review any further documentation or answer questions.. Though text messages show Bryant accepted an offer to receive Prevacus shares after he left office, Bryant told Mississippi Today he had no intention of accepting the stock. They dont need it at the moment. Anne McGrew is the accountant for the Mississippi Community Education Center. by Anna Wolfe, Mississippi Today December 28, 2021, This and is republished here under a Creative Commons license.
. Several people were arrested and charged on Feb. 5, 2020. Davis and Smith created invoices to pay DiBiase TANF money for teaching classes about drug abuse, but DiBiase was in a luxury rehabilitation facility for his own drug use in California at the time and did not perform the services, White said.
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