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. Former Director of DHS and others arrested in largest public - WJTV As a nonprofit, your support is what powers our work. The state auditors office said it would not be making any additional comments. Also, we have had a number of complaints concerning his services. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. Mississippi welfare scheme: Former state official pleads guilty in Johnson said, "she said well I did speak with Mr. Davis and he asked for you to be terminated. 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. She explained that they were absolutely doing nothing in either center.. Theres a lot of flexibility given for how states use TANF funds. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. We will continue to follow this case and update you as new developments are made available. HINDS COUNTY, Miss. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. "MDHS self-reported the information that initiated this investigation to former Gov. 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. That report ultimately led to todays arrests, it said. DHS concealed alleged fraud after welfare scandal - Mississippi Today 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 February 2020 internal report claimed that an employee of 100 Black Men falsified timesheets to pay people who were not working at the nonprofit and that they were using federal money to buy personal items for staff and their family, according to the audit, which did not name the organization. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. 0:53. Something went wrong. of interest to residents of Northeast Mississippi. In July 2019, he announced he would resign by the end of the month. 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. We work to find them. This is a developing story. 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. As a subscriber, you have 10 gift articles to give each month. {"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)"}}}} In doing so, we have identified concerns with Victory Sports expense reports and services. Create a recurring donation today to join our mission. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Help keep the momentum going by rejoining our member community today. Looking for something special to get your mom for Mothers Day? 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. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. 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. 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. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. 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. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. Show your support>>. 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. Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. I just wanted you to be aware of this information in case this comes up.. Oxford University School executive director connected to DHS The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. The auditor's office said that the illicit money flowed through the Mississippi Community Education Center, a non-profit run by Nancy New and her son Zach New. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. Transparency: Is Mississippi spending too much or not enough money on childrens programs? MDHS Embezzlement Part 1: Charges and evidence Uncovering the scheme goes back further than you may realize. In welfare scandal, judge weighs public interest versus the right to a Representatives for the nonprofits have not returned several calls and emails over the last year. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. The latest breaking updates, delivered straight to your email inbox. Uncovering the scheme goes back further than you may realize. "Thats to create the transparency. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? 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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. An accountant involved in a a major embezzlement scheme has pleaded guilty to her role in a staggering theft of welfare money in Mississippi, the poorest state in the U.S. Hinds County Circuit. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. Records are kept for all cases from the last 20 years. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says Toy Truck Drive. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. 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. MDHS self-reported the. So,there was nothing illegal about those transfers, only how it was spent after that. MDHS Embezzlement Part 1: Charges and evidence 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. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. 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. Johnson returned to the office, but the next day when he came into work, he got the news. Reginald Johnson had been with MDHS since 2007. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. Before they exited their car, a woman was unlocking the door and waving them in. With your help, we've gotten a lot done but we're not finished yet! (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. Any web site our stories appear on must include a contact for your organization. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England. JACKSON, Miss. Farmington City Clerk Arrested for Embezzlement Mississippi Office of White launched the initial investigation into how Davis administered welfare. District Attorney John Weddle's office will prosecute the case. 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. Federal authorities and internal investigators at Mississippi Department of Human Services eventually began investigating the subgrantee, 100 Black Men of Jackson, an agency spokesperson told Mississippi Today on Tuesday. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. However, in saying that, we want to be good stewards of all financial support. Any amount helps us keep producing quality journalism for Mississippi. 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. You cant edit our stories, except to reflect relative changes in time, location and editorial style. 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. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. We do not sell or share your information with anyone. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Our stories may appear on pages with ads, but not ads specifically sold against our stories. (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. 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. MDHS discusses largest embezzlement scheme in state history, upcoming a proud member of the 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. 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. 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). 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. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. 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. Here is what we know about them: John Davis was appointed director of DHS by former Gov. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. This material may not be published, broadcast, rewritten, or redistributed. We are verifying those as well to determine the validity of such. READ MORE: Coverage of Mississippis sprawling welfare scandal. 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. Please reload the page and try again. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Brett DiBiase pleads guilty in human services embezzlement scheme If that doesnt happen, that money will go to a deserving charity.. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. She received the National Press Foundations 2020 Poverty and Inequality Award. Follow him on Twitter @gbolognaCL. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. It's unclear when they will be unsealed. 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. Phil Bryant's office in June 2019. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. Check out these great suggestions. 0:00. 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. Up to $70 million was misspent in the scheme, according to Mississippi Today. 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 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. 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. following organizations: Whoops! (WLBT) With your help, we've gotten a lot done but we're not finished yet! Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. 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). Create a recurring donation today to join our mission. All TANF funds will go through the RFP process, Blanton said. Former Mississippi Welfare Director Charged With Embezzling Millions Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. Any amount helps us keep producing quality journalism for Mississippi. The agency expects to soon file civil charges against Davis and others who received the funds. 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. 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. Connecting the dots: the MDHS embezzlement scandal 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. 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. Johnson says he had heard rumblings from other employees but didn't pay much attention. . It ends today.. 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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. 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. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. Credit: MDHS Twitter A judge in the ongoing welfare embezzlement case is balancing the public's interest in learning how officials misspent tens of millions of federal dollars with a defendant's right to a fair trial. Matter of fact I had gotten a promotion to another department, Johnson said. Uncovering the scheme goes back further than you may realize. You can only publish select stories individually not as a collection. We believe that an informed Mississippi is a better Mississippi. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. 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. "He asked me, he said do you know who I am? 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. And they did start an internal audit at the beginning of 2019. MDHS discusses largest embezzlement scheme in state history - WLOX 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.
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