It's unclear when they will be unsealed. 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 The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. Officials charged Davis almost two years ago with conspiracy, embezzlement or fraud by a public official and making false statements to defraud the government. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Brett DiBiase pleads guilty for his part in DHS embezzlement scheme - WAPT By clicking submit, you agree to share your email address with Mississippi Today. She received the National Press Foundations 2020 Poverty and Inequality Award. Copyright 2020 WLBT. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. Look for the "Republish This Story" button underneath each story. 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. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Paul Lacoste did not return calls Tuesday morning. According to the auditor's office, Davis and another DHS employee made fake invoices to pay Brett DiBiase a former pro wrestler who later became a DHS employee with money intended to helppoor families. 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. Contests. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. You have to credit Mississippi Today. That report ultimately led to todays arrests, it said. Copyright 2020 WLBT. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . Here is what we know about them: John Davis was appointed director of DHS by former Gov. Theres a lot of flexibility given for how states use TANF funds. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. Theres a lot of flexibility given for how states use TANF funds. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. {"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)"}}}} He resigned in July 2019, at about the same time the auditor's office began its investigation. 0:53. Any web site our stories appear on must include a contact for your organization. White and Anderson did not object to being included in the gag order, agreeing to refrain from discussing Davis criminal culpability. Gov. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. 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. Criminal Investigation Press Releases for April 2023 . The centers director had made a call to her warning her that we were there. We believe that an informed Mississippi is a better Mississippi. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Skip to content. MDHS discusses largest embezzlement scheme in state history, upcoming policy changes, Mother arrested for leaving children home alone to go to gym, police say, Suspect accused of kidnapping, raping child in South Memphis pleads not guilty, Whitehaven mourns loss of high school band director, City of Memphis takes formal stance on 5-year residency requirement for mayoral candidates. Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. 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 . You may opt-out by. 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. We want to make our employees comfortable and proud to be a part of DHS.. We will continue to follow this case and update you as new developments are made available. 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. Davis may face trial in September. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. Copyright 2023 Nexstar Media Inc. All rights reserved. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Advertise with Us. We are placing high priority on employee morale and engagement. 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). 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. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. 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. With your help, we've gotten a lot done but we're not finished yet! "MDHS self-reported the information that initiated this investigation to former Gov. Records are kept for all cases from the last 20 years.The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. To learn more about our cartoon syndication services. Anyone can read what you share. Suspected fraud can be reported to MDHS online any time by submitting the MDHS Fraud Tip Form athttps://www.mdhs.ms.gov/report-fraud/, calling the Fraud Tip Line at 1-(800)-299-6905, or email at fraud@mdhs.ms.gov. 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. Any amount helps us keep producing quality journalism for Mississippi. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. If that doesnt happen, that money will go to a deserving charity.. Phil Bryant's office in June 2019. "Thats to create the transparency. JACKSON, Miss. I said well what is the reason? According to the auditor's office, the classes never took place. 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. I dont care how politically connected a person may be, Mr. White said. You have to credit Mississippi Today. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. 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. Any web site our stories appear on must include a contact for your organization. Brett DiBiase has pleaded guilty for his role in an embezzlement scheme that investigators said was the largest in state history.The former pro wrestler was arrested in July 2019 along with several others, including former Mississippi Department of Human Services Director John Davis.DiBiase entered a guilty plea Thursday in Hinds County Circuit Court to making fraudulent statements for the . 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. 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. All TANF funds will go through the RFP process, Blanton said. Any amount helps us keep producing quality journalism for Mississippi. 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 welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. 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. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. JACKSON, Miss. She explained that she quit due to fear of losing her license and the requirements of the supervisor. Any chance you and Nancy can help with that? All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. As a nonprofit, your support is what powers our work. 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. The community action agency did not return calls to Mississippi Today Tuesday morning. 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. 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. MDHS hires new law firm to recover misspent TANF money - WAPT "He asked me, he said do you know who I am? We moved quickly and quietly in the auditors office to put a stop to the DHS scheme before any more money was taken, and now is the time to use every investigative resource available to uncover all the fraud that remains., The story about the MDHS scandal first broke late Wednesday afternoon, Feb. 5, 2020. 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. Oxford University School executive director connected to DHS Nonprofits made most of these purchases, which obscured the spending from public view. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. 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. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. So,there was nothing illegal about those transfers, only how it was spent after that. There was an error and we couldn't process your subscription. (WLBT) We believe that an informed Mississippi is a better Mississippi. Under the plea agreement, the State recommends that Davis be sentenced to 90 years with 32 years of that sentence to be served in prison, as well as be required to pay restitution in the amount of. All rights reserved. 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. 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. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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. 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. Mississippi welfare scheme: Former state official pleads guilty in "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. The complexity of the cover-up was as such that it wouldve been highly unlikely that anybody wouldve uncovered it, except by being able to find it from within, Blanton said. He added that, Anything they gave to the campaign will be there waiting to return to the taxpayers and help the people it was intended for. Looking for something special to get your mom for Mothers Day? 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.. Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. Auditor:State agencies must improve when it comes to cybersecurity. However, in saying that, we want to be good stewards of all financial support. It is also charged that DiBiase was paid state money for drug education work that he did not perform. DiBiase was allegedly paid to teach classes about drug use and instead used the money to pay for his own drug rehabilitation in Malibu, California. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. Nine of them have pleaded guilty to embezzlement charges . Republish our articles for free, online or in print, under a Creative Commons license. 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. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. 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. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. following organizations: Whoops! We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. MDHS self-reported the. (WLBT) - It was one week ago that the news broke of whats been called the 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. Indictments were not found on the electronic courts site for Hinds County. Mike Hurst, the U.S. Attorney for the Southern District of Mississippi, complained on Thursday, Feb. 6, the day after the arrests, that his office had not been notified in advance by the state auditors office. The Hinds County District Attorney secured an indictment on December 14, 2021. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. With your help, we've gotten a lot done but we're not finished yet! We look forward to this moving through the justice system to a final disposition.. White has called for a full forensic audit of MDHS. We will continue to follow this case and update you as new developments are made available. 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. This material may not be published, broadcast, rewritten, or redistributed. 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. 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. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. Anderson recently told a reporter that his agency had reinstated the practice of sending letters to subgrantees who are suspected of misusing grant funds, which he said Davis administration had stopped. 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. NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. Something went wrong. 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 been charged with and pleaded not guilty to embezzlement and fraud for their roles in the scheme. Before they exited their car, a woman was unlocking the door and waving them in. Logan Reeves, a spokesman for the auditor's office, said all the arrests were made Wednesday. What is the extent of the relationship between Tate Reeves and the News, mother and son? Heres an attempt to connect the players and what little is known thus far of the plot in this shameful drama: Mississippi state auditors officials were to meet Monday with FBI agents to brief the Feds on the unfolding Mississippi Department of Human Services (MDHS) embezzlement scandal. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. 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. . The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. 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. 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. Anne McGrew is the accountant for the Mississippi Community Education Center. State auditors said Mr. Davis, of Brookhaven, Miss., conspired with the administrators at a nonprofit, the Mississippi Community Education Center, and the organizations accountant to defraud taxpayers and create phony invoices. A phone number for Ms. McGrew was busy. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. Republish our articles for free, online or in print, under a Creative Commons license. READ OUR FULL MISSISSIPPI WELFARE COVERAGE, Audit: 5.5% of Mississippis unemployment payouts in 2020 were improper, Jill Biden visits Jackson State vaccination site, encourages Mississippians to get your shot, $9,500-a-month mortgage on his horse ranch, Anna Wolfe answers reader questions about the Mississippi welfare scandal, Welfare case judge shoots down Brett Favres attempts to dismiss charges, Creative Commons Attribution-NoDerivatives 4.0 International License, Proudly powered by Newspack by Automattic. To learn more about our cartoon syndication services. Uncovering the scheme goes back further than you may realize. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. Create a recurring donation today to join our mission. 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. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. Auditor: DHS scandal continued after investigation began DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. I just wanted you to be aware of this information in case this comes up.. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. 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.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. It was not immediately clear Wednesday night if Mr. Davis or the other five charged had lawyers, and no one answered the phone at the homes of Mr. Davis, Ms. New, Mr. New and Mr. Smith. Transparency: Is Mississippi spending too much or not enough money on childrens programs? Former MDHS Director John Davis pleads guilty to defraud conspiracy MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. 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.
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