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. So,there was nothing illegal about those transfers, only how it was spent after that. John Davis, who last year retired from the Department of Human Services, used some of the funds to pay for Brett DiBiase, a former professional wrestler, to go to drug rehab, the state auditor said. 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. By clicking submit, you agree to share your email address with Mississippi Today. 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. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). Help keep the momentum going by rejoining our member community today. 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. 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 of interest to residents of Northeast Mississippi. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. Is there more to be revealed about the diversion of tax money to private schools? Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. He attended public schools there and then obtained an undergraduate degree from the University of Mississippi. Up to $70 million was misspent in the scheme, according to Mississippi Today. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. Anyone can read what you share. 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. What it looks like is that one side of the story is being put out there, Wooten said. HINDS COUNTY, Miss. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. 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. 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. As a nonprofit, your support is what powers our work. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. What is the extent of the relationship between Tate Reeves and the News, mother and son? 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. We hear from a former employee who is just one of many who were fired by Davis. She explained that she quit due to fear of losing her license and the requirements of the supervisor. It's unclear when they will be unsealed. Hurst said, neither the FBI nor the United States Attorneys Office was contacted by the State Auditor or the Hinds County District Attorney about this investigation, although millions of federal dollars are alleged to have been stolen.. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. And at that point we did, Blanton said. (WJTV) A former employee for the Mississippi Department of Human Services (MDHS) was arrested for embezzlement after an investigation by the Investigations Division of MDHS. 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. Latimer Smith is a former employee of DHS. (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. 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. 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. According to the auditor's office, the classes never took place. 2016 Hall of Fame enshrinee, quarterback Brett Favre is greeted by the crowd during the Pro Football [+] Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. State auditors did not say what precipitated the investigation and did not give a specific dollar amount for the money that they say was embezzled, only that it was in the millions. You deserve answers. By clicking submit, you agree to share your email address with Mississippi Today. 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. All TANF funds will go through the RFP process, Blanton 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. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Mr. Michel took orders, and millions of dollars, from a Malaysian financier who sought to gain political influence in the U.S., prosecutors said. 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. He resigned in July 2019, at about the same time the auditor's office began its investigation. Many employees have said they were fired for menial things. You cant edit our stories, except to reflect relative changes in time, location and editorial style. 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. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. Create a recurring donation today to join our mission. You may opt-out by. Records are kept for all cases from the last 20 years. Show your support>>. 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. Wooten also said that its impossible to separate the discussion of Davis criminal culpability, as it relates to the narrow criminal charges against him, from the overall alleged scheme that occurred under his watch. 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. 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. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. A phone number for Ms. McGrew was busy. 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. We work to find them. Get the Android Weather app from Google Play, Chinese electric vehicle brands expand to global, Met Gala: Rihanna, Jared Leto as Choupette, Kim K., Crisler still running for sheriff despite indictment, Met Gala 2023 live updates: Fashion highlights from, Canadian folk singer Gordon Lightfoot dies at 84, MS Insight for April 30, 2023: Steffey and Thompson, Poll: Mississippians strongly favor Presleys ideas, Poll: Presley slips, Gov. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Officials charged Davis almost two years ago with conspiracy, embezzlement or fraud by a public official and making false statements to defraud the government. Davis may face trial in September. 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. 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. 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. To learn more about our cartoon syndication services. She explained that they were absolutely doing nothing in either center.. 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. Davis was appointed executive director of the Mississippi Department of Human Resources by then-Governor Phil Bryant in January, 2016. a proud member of the Bluff City Life. Please reload the page and try again. We hear from a former employee who is just one of many who were fired by Davis. Phil Bryant's office in June 2019. We prefer Author Name, Mississippi Today in the byline. They dont need it at the moment. We will continue to follow this case and update you as new developments are made available. 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. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. 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. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. 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. If you share our stories on social media, please tag us in your posts using. 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. Look for the "Republish This Story" button underneath each story. 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. "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. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. 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. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. 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. 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. Davis also allegedly conspired to use welfare money, which his agency had granted to a nonprofit, to pay for DiBiases four-month long stint in a luxury rehab facility in California. . 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 . Prevacus, a pharmaceutical company that was working on a concussion treatment and which Favre was a top investor in, also allegedly received $2.15 million in allegedly stolen funds from the scheme, according to Mississippi Today. 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. JACKSON, Miss. All TANF funds will go through the RFP process, Blanton said. 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. All rights reserved. Help keep the momentum going by rejoining our member community today. 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. 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. 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. 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. 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). 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.". White has called for a full forensic audit of MDHS. I said well what is the reason? 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. Jackson faces 30 years and over $50,000 in fines if convicted on all counts. Copyright 2020 WLBT. Create a recurring donation today to join our mission. 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. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. We do not sell or share your information with anyone. Davis has pleaded not guilty. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. 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. 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 investigation demonstrates the strengthened controls we have put in place to identify, investigate, and prosecute fraud, waste, and abuse at any level, by any individual, MDHS Executive Director Robert G. Bob Anderson said. Uncovering the scheme goes back further than you may realize. 0:00. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. Johnson says he never received anything other than glowing employee reviews. Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. 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. Create a recurring donation today to join our mission. Look for the "Republish This Story" button underneath each story. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? 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. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. 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. In July 2019, he announced he would resign by the end of the month. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. Representatives for the nonprofits have not returned several calls and emails over the last year. 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. Tate Reeves appointed Anderson, former director of the Medicaid Fraud Control Unit in the Attorney Generals office, to clean up the agency in the aftermath. 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. According to MDHS, investigators said Lashanda Feazell, while Director of Procurement at MDHS, used the agencys credit card to pay her personal cellular phone bills in the amount of $5,741.39 during the period of August 2018 through January 2021. Here is what we know about them: John Davis was appointed director of DHS by former Gov. Any web site our stories appear on must include a contact for your organization. All rights reserved. We received sign in sheets and some activities that had been conducted., To make sure before actually calling their hand on this, Webb continued, I contacted another licensed social worker with a masters degree who had been employed by them under our Families First grant. What is the relationship between Davis and the News? As a subscriber, you have 10 gift articles to give each month. She said that you were disrespectful.". No one has been charged in connection with these purchases. Mississippi welfare embezzlement scandal: What we know so far. Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. Auditor:State agencies must improve when it comes to cybersecurity. Copyright 2020 WLBT. She received the National Press Foundations 2020 Poverty and Inequality Award. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. 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.. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. We believe that an informed Mississippi is a better Mississippi. We confirmed that it was John Davis who was making those approvals on the money. Republish our articles for free, online or in print, under a Creative Commons license. 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. MDHS is concerned about the authenticity of MCEC documents due to submission of numerous versions of the same request in a monitoring visit, Anderson wrote to the auditors office in March in response to the latest report. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Any chance you and Nancy can help with that? 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. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. 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. 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. 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 . following organizations: Whoops! Republish our articles for free, online or in print, under a Creative Commons license. 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. It is also charged that DiBiase was paid state money for drug education work that he did not perform. 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 suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. 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. The community action agency did not return calls to Mississippi Today Tuesday morning. We prefer Author Name, Mississippi Today in the byline. Before they exited their car, a woman was unlocking the door and waving them in. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. 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. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. "Thats to create the transparency. We do not sell or share your information with anyone. a proud member of the John Davis, several others face charges, arrested by state auditor's office. 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. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. Contests. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said.
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