MDHS Embezzlement Part 1: Charges and evidence Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. And they did start an internal audit at the beginning of 2019. You cant edit our stories, except to reflect relative changes in time, location and editorial style. and I told him I was fine with it, you know that I was okay. We prefer Author Name, Mississippi Today in the byline. 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. Brett DiBiase pleads guilty for his part in DHS embezzlement scheme - WAPT A combination of both, the attorney answered. 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. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Davis has pleaded not guilty. Is there more to be revealed about the diversion of tax money to private schools? To learn more about our cartoon syndication services. As a nonprofit, your support is what powers our work. The former director of the Mississippi Department of Human Services and several others have been arrested in what the state auditor said is the largest public embezzlement case in state history. All rights reserved. The total amount of money lost to the schemes has not yet been determined but the loss already exceeds any embezzlement scheme in the records of the auditors office, White said. Phil Bryant's office in June 2019. Blanton also said that since the department was still under contract with the nonprofits in the last months of 2019, the beginning of fiscal year 2020, it could not simply cut off their funding while auditors were investigating allegations. We hear from a former employee who is just one of many who were fired by Davis. 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. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Records are kept for all cases from the last 20 years. Whites statement said John Davis, former head of the Mississippi Department of Human Services, had been arrested and charged in connection with a multi-million-dollar embezzlement scheme.. Latimer Smith is a former employee of DHS. Before they exited their car, a woman was unlocking the door and waving them in. She asked if media coverage of an auditors investigation is initiated when a reporter asks the office a question or after the office publicizes the case. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. Boston police officers acquitted in overtime fraud case Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. If that doesnt happen, that money will go to a deserving charity.. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. Former director of MDHS and others arrested in largest public Auditor: DHS scandal continued after investigation began MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. - 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 . Show your support>>. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. The state auditors office said it would not be making any additional comments. All TANF funds will go through the RFP process, Blanton said. I dont care how politically connected a person may be. a proud member of the You cant edit our stories, except to reflect relative changes in time, location and editorial style. Much more remains to be revealed, including questions such as: I'm the Executive Director. The centers director had made a call to her warning her that we were there. A major part of Reevess education agenda has been to funnel state tax money to New Summit and other private schools in the state, including another one owned by New and son. A phone number for Ms. McGrew was busy. Johnson says he never received anything other than glowing employee reviews. 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. Shortly after last year's 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 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. Davis may face trial in September. Mississippi welfare embezzlement scandal: What we know so far. She received the National Press Foundations 2020 Poverty and Inequality Award. In a statement, the Department of Human Services said it had self-reported the information that initiated this investigation to the governors office in June 2019. 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. John Davis, several others face charges, arrested by state auditor's office. JACKSON, Miss. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. 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. Advertise with Us. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. 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. Former MDHS Director, John Davis, is from Brookhaven, Lincoln County, and worked for MDHS in that county before his rise to the top of the state MDHS organization. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Attempts to reach the sheriff's office for booking information were not successful. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). In welfare scandal, judge weighs public interest versus the right to a Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Copyright 2023 Nexstar Media Inc. All rights reserved. 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). The State Auditor's office says Davis allowed 98 million dollars meant for the needy to flow into nonprofits where the money was spent to hire lobbyists, on contracts for family members, to purchase vehicles, even repaying a loan. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. There was an error and we couldn't process your subscription. You can only publish select stories individually not as a collection. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. . "MDHS self-reported the information that initiated this investigation to former Gov. 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). And at that point we did, Blanton said. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. There really hadnt been the internal auditing capability, the program integrity ability before that we had at that point that was created, explained DHS Chief Communications Officer Danny Blanton. This is a developing story. By clicking submit, you agree to share your email address with Mississippi Today. MDHS self-reported the. As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. Federal authorities and internal investigators at Mississippi Department of Human Services eventually began investigating the subgrantee, 100 Black Men of Jackson, an agency spokesperson told Mississippi Today on Tuesday. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. (T)heir immediate supervisor called a meeting with the staff in Myersville and told them that they had to document names of clients and activities performed in that center. 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. Bluff City Life. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. The former director of the Mississippi Department of Human Services and several others have been arrested in what the state auditor said is the largest public embezzlement case in state history. 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. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. One of the nonprofits, Mississippi Community Education Center, shuttered after law enforcement arrested its owner Nancy New, while officials at the other nonprofit, Family Resource Center of North Mississippi, have not faced criminal charges. We do appreciate the partnership with Victory Sports and Pauls work. Mr. Michel took orders, and millions of dollars, from a Malaysian financier who sought to gain political influence in the U.S., prosecutors said. But the criminal charges only scratch the surface: Under Davis leadership, independent auditors have found $70 million in improper purchases with federal public assistance dollars. (WLBT) All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. Please reload the page and try again. 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. 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. 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. 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. The Mississippi Department of Human Services has hired a new law firm to recover money that was misspent as part of the state's welfare fraud case. Brett Favre Scandal: Alleged $8 Million Welfare Scam, Explained - Forbes NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. Create a recurring donation today to join our mission. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. 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. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . The former head of the Mississippi Department of Human Services has been arrested as part of a multi-million dollar embezzlement scheme that among other things paid for a former professional wrestler to go to a luxury drug rehabilitation center in California, the state auditor announced Wednesday. 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. White has called for a full forensic audit of MDHS. Criminal Investigation Press Releases for April 2023 Any web site our stories appear on must include a contact for your organization. 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. 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. An eight-month investigation revealed that the accused conspired to illegally obtain millions in public funds from the Temporary Assistance for Needy Families program administered by DHS, White said. Check out these great suggestions. following organizations: Whoops! The community action agency did not return calls to Mississippi Today Tuesday morning. 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. As we do with all of our partners that receive Families First funding through Mississippi Community Education Center, we evaluate their services and outcomes and review their expenses, New wrote. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. She said its unfair that State Auditor Shad White, who initially investigated the scheme, and current Mississippi Department of Human Services Director Bob Anderson are free to make comments about Davis leadership while Davis is bound by a gag order and unable to respond. The Hinds County District Attorney secured an indictment on December 14, 2021. The indictments were filed under seal in Hinds County, Reeves said. Former DHS director, wrestler arrested in 'largest public embezzlement This material may not be published, broadcast, rewritten, or redistributed. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office.