Mississippi Community Education Center has also failed to turn over documents the agency needs to complete its forensic audit or conduct a full grant closeout the departments process for ensuring the nonprofit complied with grant requirements and spent the funds properly. Republish our articles for free, online or in print, under a Creative Commons license. Davis is accused of creating fake invoices for DiBiase and for "creating a fraud scheme to take TANF funds to pay for personal investments in medical device companies.". 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. 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 John Davis has been indicted in the largest embezzlement and fraud scheme in state history. 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. The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. Any web site our stories appear on must include a contact for your organization. Republish our articles for free, online or in print, under a Creative Commons license. 0:00. 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. JACKSON, Miss. Davis attorney argues that when White and Anderson have discussed the case with the media, they have focused solely on Davis actions and not the several other employees who approved various purchases or the agency policies that he argues sanctioned Davis conduct. HINDS COUNTY, Miss. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31, 2019. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN Webb attached a letter in her email to Davis, showing her organization had terminated their contract with WWISCAA. Mississippi welfare scheme: Former state official pleads guilty in The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. All TANF funds will go through the RFP process, Blanton said. by Anna Wolfe, Mississippi Today June 22, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.. Phil Bryant's office in June 2019. In doing so, we have identified concerns with Victory Sports expense reports and services. A judge in the ongoing welfare embezzlement case is balancing the publics interest in learning how officials misspent tens of millions of federal dollars with a defendants right to a fair trial. New is the executive director of Oxford University School. And they did start an internal audit at the beginning of 2019. She explained that they were absolutely doing nothing in either center.. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. Please reload the page and try again. 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. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. Former DHS director, wrestler arrested in 'largest public embezzlement She received the National Press Foundations 2020 Poverty and Inequality Award. He resigned in July 2019, at about the same time the auditor's office began its investigation. All TANF funds will go through the RFP process, Blanton said. Help keep the momentum going by rejoining our member community today. "MDHS self-reported the information that initiated this investigation to former Gov. The auditor's office said that the illicit money flowed through the Mississippi Community Education Center, a non-profit run by Nancy New and her son Zach New. The organizations executive director, Nancy New, 67, and its assistant executive director, Zack New, 37, were arrested on Wednesday, along with the centers accountant, Anne McGrew, 63, state auditors said. 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. All rights reserved. Agents also arrested DHS employee Latimer Smith; Dr. Nancy New, owner and director of the Mississippi Community Education Center and New Learning; Zach New, assistant executive director of MCEC; Anne McGrew, accountant for MCEC; and former pro wrestler Brett DiBiase in connection with the multimillion-dollar embezzlement scheme. 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. The defendants used a variety of business entities and schemes to defraud the taxpayers, 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. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. "He asked me, he said do you know who I am? 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. 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. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. Former MDHS employee arrested for embezzlement - WJTV Looking for something special to get your mom for Mothers Day? Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. 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Listen to this article Five of the six people accused in what could be the largest embezzlement scheme on record in Mississippi pleaded not guilty on Friday. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. Advertise with Us. She explained that she quit due to fear of losing her license and the requirements of the supervisor. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. But fast forward to that afternoon session and my cell phone began to vibrate. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. It's unclear when they will be unsealed. Farmington City Clerk Arrested for Embezzlement Mississippi Office of 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. No one has been charged in connection with these purchases. 0:27. 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. To learn more about our cartoon syndication services. You deserve answers. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. 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. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. 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. Jackson faces 30 years and over $50,000 in fines if convicted on all counts. MDHS officials say former director John Davis created an environment of fear and intimidation, John Davis is indicted in an embezzlement scheme involving millions of dollars, 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. Former director of MDHS and others arrested in largest public Others doing this kind of thing are on notice: This will not be tolerated now., Former Mississippi Welfare Director Charged With Embezzling Millions, https://www.nytimes.com/2020/02/05/us/john-davis-mdhs-brett-dibiase.html. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. MDHS hires new law firm to recover misspent TANF money - WAPT MDHS discusses largest embezzlement scheme in state history, upcoming Much more remains to be revealed, including questions such as: Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. Mr. White said the arrests stemmed from an eight-month investigation into the misappropriation of funds from the Temporary Assistance for Needy Families program, which the state welfare agency administers. And they did start an internal audit at the beginning of 2019. Attempts to reach the sheriff's office for booking information were not successful. Thats to be open with how funds are distributed and who theyre going to.. Any amount helps us keep producing quality journalism for Mississippi. 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. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. We want to make our employees comfortable and proud to be a part of DHS.. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Look for the "Republish This Story" button underneath each story. You cant edit our stories, except to reflect relative changes in time, location and editorial style. "We are aware of these types of incidents. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Davis may face trial in September. White launched the initial investigation into how Davis administered welfare. Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. 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. Agents also arrested DHS employee Latimer Smith; Dr. Nancy New, owner and director of the Mississippi Community Education Center and New Learning; Zach New, assistant executive director of MCEC; Anne McGrew, accountant for MCEC; and former pro wrestler Brett DiBiase in connection with the multimillion-dollar embezzlement scheme.Tap here for mugshots. 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. With your help, we've gotten a lot done but we're not finished yet! You and Nancy stuck your neck out for me with jake and Prevacus I know and thats going to turn out very good I believe.. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Davis attorney recently asked the court to extend an existing suppression order in his case to include White and Anderson, citing two recent articles Mississippi Today published about the case. She received the National Press Foundations 2020 Poverty and Inequality Award. 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. 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. That report ultimately led to todays arrests, it said. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. Former Mississippi Welfare Director Charged With Embezzling Millions Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. DHS went on camera with WLBT to answer questions about what happened and what they've changed to prevent the problem from happening 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. The community action agency did not return calls to Mississippi Today Tuesday morning. You have to credit Mississippi Today. Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? Johnson said, "I was a special investigator, special investigator, a DHS investigator.". Send any friend a story As a subscriber, you have . 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. {"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)"}}}} The Hinds County District Attorney secured an indictment on December 14, 2021. All rights reserved. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. 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. Mr. DiBiase never gave those classes, auditors said, because he was being treated for an opioid addiction at the Rise in Malibu rehab center in California. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. Create a recurring donation today to join our mission. It ends today.. and I told him I was fine with it, you know that I was okay. Johnson said, "she said well I did speak with Mr. Davis and he asked for you to be terminated. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. 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.. 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. 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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. 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 Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. Davis was appointed executive director of the Mississippi Department of Human Resources by then-Governor Phil Bryant in January, 2016. There was an error and we couldn't process your subscription. The former director of Mississippi's 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. Indictments were not found on the electronic courts site for Hinds County. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. And at that point we did, Blanton said. Criminal Investigation Press Releases for April 2023 Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. Brett DiBiase pleads guilty in human services embezzlement scheme Keisha Rowe Mississippi Clarion Ledger 0:00 2:16 Brett DiBiase, a former deputy administrator for the Mississippi Department. (WLBT) - 3 On Your Side is learning more about how the former head of the Mississippi Department of Human Services ran the agency and treated employees. The centers director had made a call to her warning her that we were there. 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. I just wanted you to be aware of this information in case this comes up.. 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. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. We believe that an informed Mississippi is a better Mississippi. Former Director of DHS and others arrested in largest public - WJTV 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. 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. 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.
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