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.. They dont need it at the moment. Look for the "Republish This Story" button underneath each story. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Any chance you and Nancy can help with that? 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. Attempts to reach the sheriff's office for booking information were not successful. 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. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. 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 suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. A former top state official in Mississippi pleaded guilty Thursday to state and federal charges in connection to an embezzlement scheme that auditors say misused millions of welfare dollars,. The scheme came [] Five plead not guilty in MDHS embezzlement scheme - Vicksburg Daily News of interest to residents of Northeast Mississippi. Paul Lacoste did not return calls Tuesday morning. 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. MDHS paid Mississippi Community Education Center $19,404 two days before the state auditor's office arrested the News and former Human Services Executive Director John Davis as part of the. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. Is there more to be revealed about the diversion of tax money to private schools? I'm the Executive Director. Reginald Johnson had been with MDHS since 2007. 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. (WLBT) "MDHS self-reported the information that initiated this investigation to former Gov. Copyright 2020 WLBT. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. Any web site our stories appear on must include a contact for your organization. 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. 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. Copyright 2020 WLBT. All rights reserved. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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. 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. 0:00. A combination of both, the attorney answered. 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. According to the auditor's office, the classes never took place. 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. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Read more. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. 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). With your help, we've gotten a lot done but we're not finished yet! Phil Bryant in January 2016. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. 2023 www.clarionledger.com. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. 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. We believe that an informed Mississippi is a better Mississippi. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Create a recurring donation today to join our mission. JACKSON, Miss. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. What it looks like is that one side of the story is being put out there, Wooten said. I said well what is the reason? 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. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? Michael Maurello, 56, worked as a payroll manager at the . The audit released Tuesday also criticized the welfare department for continuing to fund two now-embattled nonprofits well into fiscal year 2020, as Mississippi Today first reported last July, even after learning that the auditor suspected they were responsible for the misspending of tens of millions of welfare dollars, the audit said. 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. We did reach out to Davis attorney Merrida Coxwell for comment. 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). So,there was nothing illegal about those transfers, only how it was spent after that. The funds in question were part of the Temporary Assistance for Needy Families program, which is administered by DHS. I just wanted you to be aware of this information in case this comes up.. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. 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. 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. Johnson said, "I was a special investigator, special investigator, a DHS investigator.". Uncovering the scheme goes back further than you may realize. You can only publish select stories individually not as a collection. Johnson says he had heard rumblings from other employees but didn't pay much attention. Matter of fact I had gotten a promotion to another department, Johnson said. Create a recurring donation today to join our mission. In the nearly two years after agents first arrested Davis, Whites office has publicized continued findings related to welfare spending and Anderson has made media appearances to discuss changes at his agency as it attempts to restore public trust. Davis was appointed executive director of the Mississippi Department of Human Resources by then-Governor Phil Bryant in January, 2016. MDHS self-reported the. A little less than four months ago October 2019 it was reported that Nancy Drew and her son Zach had donated $5,000 to the Reeves campaign on behalf of their privately owned New Summit School in Jackson. 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. White has called for a full forensic audit of MDHS. And they did start an internal audit at the beginning of 2019. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. 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. It's unclear when they will be unsealed. You cant edit our stories, except to reflect relative changes in time, location and editorial style. You can only publish select stories individually not as a collection. John Davis, several others face charges, arrested by state auditor's office. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. 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. You deserve answers. Phil Bryant's office in June 2019. Among other things, it is charged that state money was diverted to pay for drug rehabilitation treatment for former wrestler DiBiase at an exclusive drug rehab clinic in Malibu, California. And at that point we did, Blanton said. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. 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). Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. 0:27. 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. . Several people were arrested and charged on Feb. 5, 2020. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. He resigned in July 2019, at about the same time the auditor's office began its investigation. But when the State Auditors Office later asked state agency officials at two separate meetings in 2020 if they knew of any other potential fraud, they did not relay the report, the audit released Tuesday said. Davis has pleaded not guilty. There was an error and we couldn't process your subscription. Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. Please reload the page and try again. 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. 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. READ MORE: Coverage of Mississippis sprawling welfare scandal. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: JACKSON, Miss. We will continue to follow this case and update you as new developments are made available. 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. To learn more about our cartoon syndication services. 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. a proud member of the The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. 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. 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. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. All rights reserved. We do not sell or share your information with anyone. 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. Uncovering the scheme goes back further than you may realize. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Check out these great suggestions. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. by Anna Wolfe, Mississippi Today December 28, 2021, This and is republished here under a Creative Commons license.
. Please reload the page and try again. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. We certainly do not want to falsely accuse. Purported text messages obtained by Mississippi Today show that Favre and Prevacus founder Jake Vanlandingham offered the governor and nonprofit director shares of Prevacus and offered to buy the head of MDHS a Ford F-150 Raptor truck in return for their help. 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. 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. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. 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. Johnson said, "Mr. Davis approached me and asked me did I not, did I not want to be there. If you share our stories on social media, please tag us in your posts using. 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. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. 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. Auditor:State agencies must improve when it comes to cybersecurity. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. 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. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. People may have identified or suspected that something was amiss but, because of the atmosphere of fear and intimidation, they were afraid to say anything for fear of losing their jobs, noted Blanton. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. and I told him I was fine with it, you know that I was okay. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. In July 2019, he announced he would resign by the end of the month. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. 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. Transparency: Is Mississippi spending too much or not enough money on childrens programs? Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. 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. 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. 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. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. "Thats to create the transparency. (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. 0:53. 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. White launched the initial investigation into how Davis administered welfare. You do not have the right to treat taxpayer money as your own or to lie to the taxpayers about what youre doing with that money. 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. We want to make our employees comfortable and proud to be a part of DHS.. 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. Great Jones Cookware Review: Is It Worth Buying? She explained that she quit due to fear of losing her license and the requirements of the supervisor. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. "MDHS self-reported the information that initiated this investigation to former Gov. The director, John Davis, who retired in 2019 from the Department of Human Services, was one of six people charged in what the state auditor, Shad White, said was the largest embezzlement scheme that the office had seen in at least 20 years. Any amount helps us keep producing quality journalism for Mississippi. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. 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. We are placing high priority on employee morale and engagement. You may opt-out by. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. District Attorney John Weddle's office will prosecute the case. 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. 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. 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. She received the National Press Foundations 2020 Poverty and Inequality Award. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. By clicking submit, you agree to share your email address with Mississippi Today. The centers director had made a call to her warning her that we were there. 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. Gov. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. - 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 . NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. 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. However, in saying that, we want to be good stewards of all financial support. 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. 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.".
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