She received the National Press Foundations 2020 Poverty and Inequality Award. 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. Matter of fact I had gotten a promotion to another department, Johnson said. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. 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. Latimer Smith is a former employee of DHS. Logan Reeves, a spokesman for the auditor's office, said all the arrests were made Wednesday. Please refresh the page and/or try again. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. All rights reserved. MDHS discusses largest embezzlement scheme in state history, upcoming Between 2016 and 2018, the nonprofit Mississippi Community Education Center doled out $5 millionallegedly at Favres requestto the University of Southern Mississippi, where Favre attended and where his daughter also attended and played volleyball, to pay for a new volleyball court, according to Mississippi Today; the nonprofit also paid him $1.1 million to promote a program called Families First. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Pakistan Muslim League-Nawaz (PML-N) senior leader Shahid Khaqan Abbasi's embezzlement allegations targeting the flour scheme in Punjab have upset the interim government, as it termed the former . HINDS COUNTY, Miss. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). John Davis, several others face charges, arrested by state auditor's office. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. We believe that an informed Mississippi is a better Mississippi. 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. Auditor: DHS scandal continued after investigation began When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. We do not sell or share your information with anyone. There was a reception area, a 10 x 10 room with two tables and 6 chairs and another office. On a separate visit, she said, they found no employee present. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. Copyright 2020 WLBT. Thats to be open with how funds are distributed and who theyre going to.. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. We look forward to this moving through the justice system to a final disposition.. You do not have the right to treat taxpayer money as your own or to lie to the taxpayers about what youre doing with that money. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. She said that you were disrespectful.". White launched the initial investigation into how Davis administered welfare. You do not have the right to treat taxpayer money as your own or to lie to the taxpayers about what youre doing with that money. MDHS paid Mississippi Community Education Center $19,404 two days before the state auditor's office arrested the News and former Human Services Executive Director John Davis as part of the. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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.. The report also said Victory Sports charged a fee for participants in the boot camp to attend and it did not conduct any kind of eligibility to ensure it was serving those in need. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. 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. If you share our stories on social media, please tag us in your posts using. MDHS officials say former director John Davis created an environment of a proud member of the This material may not be published, broadcast, rewritten, or redistributed. All rights reserved. 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. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. Auditor Shad White said his office is still attempting to determine the total amount of money involved, but the "sprawling conspiracy" already exceeds any embezzlement scheme in recent years. To learn more about our cartoon syndication services. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. The Temporary Assistance for Needy Families funds are part of a lawsuit filed against 38 people or companies that seeks to recover millions in federal funds. Republish our articles for free, online or in print, under a Creative Commons license. Mississippi Today retrieved a 2017 email from Family Resource Center director Christi Webb, in which she described to Davis allegations of blatant deception at one of their partners, the local community action agency in Greenville, Warren-Washington-Issaqueena-Sharkey Community Action Agency or WWISCAA. The welfare agencys documentation, or lack thereof, shows Mississippi Community Education Center and Family Resource Center of North Mississippi did not, as New stated, evaluate the services and outcomes of its grantees. JACKSON, Miss. The agency has still not adopted a comprehensive approach to responding to and reporting suspected fraud; additionally, the agency did not take all the needed steps to verify suspected fraud was investigated timely and misappropriated monies were returned, the audit stated. We want to make our employees comfortable and proud to be a part of DHS.. 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. Former Mississippi DHS Accountant Will Testify In Embezzlement Case The indictments were filed under seal in Hinds County, Reeves said. Blanton explained that the U.S. Department of Health and Human Services Office of Inspector General had told the state agency not to interfere with its investigation and that the auditors office was already aware of the federal investigators involvement. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Ricky Jones, who has served as president of 100 Black Men of Jackson since March, said his organization just learned about the investigation last week when DHS notified them they would not be receiving a welfare grant this year. - 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 . Seven New England fishermen charged with tax evasion and failing to file returns "Chapitos" charged in department's latest actions to disrupt flow of illegal fentanyl and other dangerous drugs Tate Reeves appointed the agencys current director, Bob Anderson, in March of 2020. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. Michael Maurello, 56, worked as a payroll manager at the . And at that point we did, Blanton said. Zach New, Nancy's son, is the assistant executive director of the Mississippi Community Education Center and is also accused ofusing TANF funds for personal use as well as for investing in private medical device companies. All six people charged are Mississippi residents, including the former W.W.E. Executive Director John Davis was two-and-half-years into his time as head of the agency when they decided to add an Office of Inspector General within DHS. A phone number for Ms. McGrew was busy. 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 indictment alleges his agency entered a $48,000 contract with ex-wrestler Brett DiBiase to conduct opioid addiction education courses, and paid him knowing he wasnt conducting the work because he was in rehab. Boston police officers acquitted in overtime fraud case 2023, Hearst Television Inc. on behalf of WAPT-TV. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. No one has been charged in connection with these purchases. They then converted funds to their personal use and concealed the conversion through various fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures, investigators said. Everything was going well. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. "We look forward to this moving through the justice system to a final disposition.". Look for the "Republish This Story" button underneath each story. Any amount helps us keep producing quality journalism for Mississippi. We work to find them. Wooten pushed back on this argument, repeatedly asking the attorney representing White and Anderson from the state attorney generals office how the gag order prevents White from doing his job, namely auditing and investigating government spending. Phil Bryant in January 2016. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? Many more millions are yet to be accounted for and investigators have not revealed the involvement of any other figures, such as state leaders, in the scheme. We hear from a former employee who is just one of many who were fired by Davis. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. I said well what is the reason? I dont care how politically connected a person may be. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. The agency expects to soon file civil charges against Davis and others who received the funds. John Davis, then executive director of the Mississippi Department of Human Services, at a hearing in Jackson, Miss., in 2016. retired in 2019 from the Department of Human Services. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. 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. "I now have the opportunity to focus on my family at home and pursue a position outside of state government," Davis wrote in a statement announcing his resignation. Shortly after last years arrests in the largest reported public embezzlement scheme in state history, a whistleblower disclosed several previously unreported fraud allegations to the welfare department regarding one of its federal grant recipients. The purported messages also show a request from Favre asking members of the group to help to pay a $1 million debt Favre owed to the University of Southern Mississippi for the volleyball court he promised the school. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Two days after the State Auditor arrested the News, Davis, DiBiase, et al, Governor Reeves made a statement in which he said, I can tell you right now, anything they (the News) gave to the campaign is going to be moved to a separate untouched bank account., Reeves said he did not know how much of the money his campaign received was stolen from taxpayers. NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. 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. MDHS hires new law firm to recover misspent TANF money - WAPT Our stories may appear on pages with ads, but not ads specifically sold against our stories. Several people were arrested and charged on Feb. 5, 2020. Founded in 2016 as the states first nonprofit, nonpartisan newsroom, Mississippi Todays roots in Capitol coverage have grown to encompass a myriad of beats beyond politics and policy, including education, public health, justice, environment, equity, and, yes, sports. When I checked to see who the caller was Mr. Davis was passing by and he stopped and he asked me to put my phone away and which I complied.". Former director of MDHS and others arrested in largest public The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. Former Mississippi Welfare Director Charged With Embezzling Millions After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. 0:27. What is the relationship between Davis and the News? We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. They dont need it at the moment. Click to email a link to a friend (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), https://i0.wp.com/nemiss.news/wp-content/uploads/2020/02/DHS-arrests.jpg?fit=1200%2C600&ssl=1, https://nemiss.news/wp-content/uploads/2023/02/nemiss-full-logo-300x77.jpg, Connecting the dots: the MDHS embezzlement scandal, Officers investigate shots fired report near Blue Springs, Retiring fire chief Steve Coker reflects on years of service, Mississippi Community Education Center (MCEC). Bluff City Life. Davis resigned as head of MDHS in July, 2019. The state auditors office said it would not be making any additional comments. White confirmed in an interview earlier today that Governor Bryant, himself a former state auditor, was indeed the whistleblower who brought the case to the state auditors office in June. You can only publish select stories individually not as a collection. You have to credit Mississippi Today. There was an error and we couldn't process your subscription. Check back for updates. Special agents from the office of State Auditor Shad White have arrested John Davis, the former director of the Mississippi Department of Human Services, and five others in a multimillion-dollar embezzlement scheme. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. State auditors said Ms. New and Mr. New concealed the embezzlement using fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures. We confirmed that it was John Davis who was making those approvals on the money. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Look for the "Republish This Story" button underneath each story. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . It ends today.. Davis may face trial in September. Johnson says he had heard rumblings from other employees but didn't pay much attention. What it looks like is that one side of the story is being put out there, Wooten said. Jones said he had no knowledge of any alleged fraud and that the nonprofit had cooperated with audits from the department as well as the auditors office. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. Favre declined to be interviewed by Mississippi Today and could not be reached for comment by Forbes, and in 2020 tweeted that he love[s] Mississippi and I would never knowingly do anything to take away from those that need it most., Hey brother [his wife] Deanna and [I] still owe 1.1 million on Vball, Favre purportedly texted John Davis, the former head of the Mississippi Department of Human Services, according to Mississippi Today. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says In 2020, officials said the loss exceeds any embezzlement scheme in the records of the Auditors office., You stuck your neck out for me: Brett Favre used fame and favors to pull welfare dollars (Mississippi Today), Phil Bryant had his sights on a payout as welfare funds flowed to Brett Favre (Mississippi Today), 8 revelations from Part 1 of The Backchannel investigation (Mississippi Today), This is a BETA experience. 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. Purported text messages obtained by Mississippi Today show that Favre and Prevacus founder Jake Vanlandingham offered the governor and nonprofit director shares of Prevacus and offered to buy the head of MDHS a Ford F-150 Raptor truck in return for their help. The centers director had made a call to her warning her that we were there. New described issues with their partner, Victory Sports Foundation owned by former football player Paul Lacoste, who was paid to conduct a boot camp-style fitness program, often attended by professionals and lawmakers. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. {"requests":{"event":"https:\/\/mississippitoday.org\/wp-content\/plugins\/newspack-popups\/includes\/..\/api\/campaigns\/index.php"},"triggers":{"trackPageview":{"on":"visible","request":"event","visibilitySpec":{"selector":"#c237","visiblePercentageMin":50,"totalTimeMin":250,"continuousTimeMin":100},"extraUrlParams":{"popup_id":"id_989879","cid":"CLIENT_ID(newspack-cid)"}}}} Contests. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White.
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