Auditor: DHS scandal continued after investigation began Uncovering the scheme goes back further than you may realize. Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN 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. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. White has called for a full forensic audit of MDHS. 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. DiBiase is the son of well-known former pro wrestler Ted DiBiase. READ MORE: Coverage of Mississippis sprawling welfare scandal. Mississippi welfare embezzlement scandal: What we know so far. (WLBT) A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. 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. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. 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. DHS concealed alleged fraud after welfare scandal - Mississippi Today Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. Farmington City Clerk Arrested for Embezzlement Mississippi Office of What is the relationship between Davis and the News? Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. 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. It is also charged that DiBiase was paid state money for drug education work that he did not perform. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. Something went wrong. 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. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. 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. 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. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Help keep the momentum going by rejoining our member community today. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. 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. 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. Anyone can read what you share. She received the National Press Foundations 2020 Poverty and Inequality Award. 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 . Follow him on Twitter @gbolognaCL. She received the National Press Foundations 2020 Poverty and Inequality Award. 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. Jackson faces 30 years and over $50,000 in fines if convicted on all counts. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Uncovering the scheme goes back further than you may realize. 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. Any web site our stories appear on must include a contact for your organization. Former DHS director, wrestler arrested in 'largest public embezzlement The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. MDHS discusses largest embezzlement scheme in state history, upcoming The community action agency did not return calls to Mississippi Today Tuesday morning. A combination of both, the attorney answered. Create a recurring donation today to join our mission. 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 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. We have been told by officials with the Mississippi Department of Human Services that former Executive Director John Davis ran the department in an atmosphere of fear and intimidation. Boston police officers acquitted in overtime fraud case There was also no answer at the main office of the Mississippi Community Education Center in Jackson. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Former MDHS employee arrested for embezzlement - WJTV Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. You have to credit Mississippi Today. So,there was nothing illegal about those transfers, only how it was spent after that. 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. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Anne McGrew is the accountant for the Mississippi Community Education Center. 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. 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. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. 2023 www.clarionledger.com. Check back for updates. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. MDHS self-reported the. We confirmed that it was John Davis who was making those approvals on the money. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. Many more millions are yet to be accounted for and investigators have not revealed the involvement of any other figures, such as state leaders, in the scheme. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. As a nonprofit, your support is what powers our work. and I told him I was fine with it, you know that I was okay. Skip to content. 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. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. {"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)"}}}} We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. following organizations: Whoops! 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. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. 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. Our stories may appear on pages with ads, but not ads specifically sold against our stories. 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. 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. Bluff City Life. Mississippi welfare scheme: Former state official pleads guilty in However, in saying that, we want to be good stewards of all financial support. I just wanted you to be aware of this information in case this comes up.. 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. 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. To learn more about our cartoon syndication services. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. Please refresh the page and/or try again. 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. 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. There was an error and we couldn't process your subscription. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Also, we have had a number of complaints concerning his services. If you share our stories on social media, please tag us in your posts using. Republish our articles for free, online or in print, under a Creative Commons license. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. If you share our stories on social media, please tag us in your posts using. I dont care how politically connected a person may be. Toy Truck Drive. We hear from a former employee who is just one of many who were fired by Davis. As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. All rights reserved. There was an error and we couldn't process your subscription. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. You can only publish select stories individually not as a collection. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. We are verifying those as well to determine the validity of such. She explained that they were absolutely doing nothing in either center.. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. MDHS Embezzlement Part 1: Charges and evidence 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. If youre thinking of altering your workout routine, youre probably looking for new exercises and equipment to help you reach your fitness goals. Connecting the dots: the MDHS embezzlement scandal 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. "He asked me, he said do you know who I am? 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. What is the extent of the relationship between Tate Reeves and the News, mother and son? 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 DHS went on camera with WLBT to answer questions about what happened and what they've 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. 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. A phone number for Ms. McGrew was busy. 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. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. 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.. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. You can only publish select stories individually not as a collection. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. 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. The state auditors office said it would not be making any additional comments. 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. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. Together, the nonprofits paid more than $3 million to retired WWE wrestler Ted DiBiase Jr. for little more than inspirational speaking and promotion and paid a six-figure salary to retired football player Marcus Dupree, plus covered the $9,500-a-month mortgage on his horse ranch. Advertise with Us. And they did start an internal audit at the beginning of 2019. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. When White released the first audit outlining the scheme in May of 2020, he said Davis saw his appointment as head of human services in 2016 as an opportunity to build a kingdom over there. But in the last year, Whites office has declined on several occasions to publicly discuss the particulars of the criminal case. This is a developing story. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. 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, 2019. 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. All TANF funds will go through the RFP process, Blanton said. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Copyright 2023 Nexstar Media Inc. All rights reserved. (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. Show your support>>. Please reload the page and try again. In doing so, we have identified concerns with Victory Sports expense reports and services. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. According to the auditor's office, the classes never took place. 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. 0:53. 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. . Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Davis resigned as head of MDHS in July, 2019. Blanton also said that since the department was still under contract with the nonprofits in the last months of 2019, the beginning of fiscal year 2020, it could not simply cut off their funding while auditors were investigating allegations. 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. Much more remains to be revealed, including questions such as: 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. 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,. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. I dont care how politically connected a person may be, Mr. White said. 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. It's unclear when they will be unsealed. 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. Favre declined to be interviewed by Mississippi Today and could not be reached for comment by Forbes, and in 2020 tweeted that he love[s] Mississippi and I would never knowingly do anything to take away from those that need it most., Hey brother [his wife] Deanna and [I] still owe 1.1 million on Vball, Favre purportedly texted John Davis, the former head of the Mississippi Department of Human Services, according to Mississippi Today. The funds in question were part of the Temporary Assistance for Needy Families program, which is administered by DHS. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. 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. 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. Johnson said, "I was a special investigator, special investigator, a DHS investigator.". 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. Phil Bryant's office in June 2019. - 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 . You cant edit our stories, except to reflect relative changes in time, location and editorial style. District Attorney John Weddle's office will prosecute the case. The report also said Victory Sports charged a fee for participants in the boot camp to attend and it did not conduct any kind of eligibility to ensure it was serving those in need. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs?
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