Something went wrong. The total amount of money lost to these schemes has not yet been determined, but the loss already exceeds any embezzlement . Attempts to reach the sheriff's office for booking information were not successful. It's unclear when they will be unsealed. Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. But fast forward to that afternoon session and my cell phone began to vibrate. 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. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. 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Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Davis attorney recently asked the court to extend an existing suppression order in his case to include White and Anderson, citing two recent articles Mississippi Today published about the case. Ricky Jones, who has served as president of 100 Black Men of Jackson since March, said his organization just learned about the investigation last week when DHS notified them they would not be receiving a welfare grant this year. 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. I just wanted you to be aware of this information in case this comes up.. 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. 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. We work to find them. The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office 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. 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. Logan Reeves, a spokesman for the auditor's office, said all the arrests were made Wednesday. Read more. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. 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 center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Anne McGrew is the accountant for the Mississippi Community Education Center. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. (T)heir immediate supervisor called a meeting with the staff in Myersville and told them that they had to document names of clients and activities performed in that center. 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. Any web site our stories appear on must include a contact for your organization. Many employees have said they were fired for menial things. 0:27. I dont care how politically connected a person may be, Mr. White said. Anyone can read what you share. The audit released less than a year later said that according to its budget, Victory Sports used the nearly $1.4 million welfare subgrant to pay for staff and coaches, a program design fee, equipment, an onsite nurse, marketing and other administration costs, and to purchase a $20,000 trailer and a $70,000 vehicle. We look forward to this moving through the justice system to a final disposition.. Officials charged Davis almost two years ago with conspiracy, embezzlement or fraud by a public official and making false statements to defraud the government. HINDS COUNTY, Miss. 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. The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. Davis resigned as head of MDHS in July, 2019. 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. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Help keep the momentum going by rejoining our member community today. 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 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. You deserve answers. What is the relationship between Davis and the News? 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.". Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. By clicking submit, you agree to share your email address with Mississippi Today. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. "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. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. 2023 www.clarionledger.com. White and Anderson did not object to being included in the gag order, agreeing to refrain from discussing Davis criminal culpability. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. . This is a developing story. The audit, on the other hand, said that when the auditors office pressed DHS agency officials about the fraud tip, some members of executive management still did not inform auditors of the fraud, or expressed to auditors that the fraud tip was minor and involved an incident of an employee using a business care for personal use, and of an employee sleeping on the job.. Phil Bryant's office in June 2019. Webb attached a letter in her email to Davis, showing her organization had terminated their contract with WWISCAA. 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. Copyright 2020 WLBT. Paul Lacoste did not return calls Tuesday morning. 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 and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Send any friend a story As a subscriber, you have . 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. Any amount helps us keep producing quality journalism for Mississippi. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. All rights reserved. Skip to content. Davis has pleaded not guilty. "We are aware of these types of incidents. 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. Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. With your help, we've gotten a lot done but we're not finished yet! Records are kept for all cases from the last 20 years. 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. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. Follow him on Twitter @gbolognaCL. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. As a subscriber, you have 10 gift articles to give each month. Look for the "Republish This Story" button underneath each story. The state auditors office said it would not be making any additional comments. Please reload the page and try again. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. That report ultimately led to todays arrests, it said. The indictments were filed under seal in Hinds County, Reeves said. You have to credit Mississippi Today. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. We believe that an informed Mississippi is a better Mississippi. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. 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. All rights reserved. So,there was nothing illegal about those transfers, only how it was spent after that. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. 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.. So,there was nothing illegal about those transfers, only how it was spent after that. 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. 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. Create a recurring donation today to join our mission. The agency has still not adopted a comprehensive approach to responding to and reporting suspected fraud; additionally, the agency did not take all the needed steps to verify suspected fraud was investigated timely and misappropriated monies were returned, the audit stated. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. 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. You can only publish select stories individually not as a collection. This inability to validity MCECs records is further complicated by the fact that the principals of MCEC are currently under indictment and essentially unavailable to MDHS to review any further documentation or answer questions.. MDHS self-reported the. Create a recurring donation today to join our mission. The agency expects to soon file civil charges against Davis and others who received the funds. White launched the initial investigation into how Davis administered welfare. In a statement, the Department of Human Services said it had self-reported the information that initiated this investigation to the governors office in June 2019. 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. 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. The Hinds County District Attorney secured an indictment on December 14, 2021. Phil Bryant and other officials in his home state in order to influence roughly $8 million in welfare payments for himself, pharmaceutical company Prevacus, and a volleyball court for the University of Southern Mississippi, according to an expose published last week Mississippi Todaythough Favre has not been charged criminally or accused of a crime. "He asked me, he said do you know who I am? Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . We hear from a former employee who is just one of many who were fired by Davis. We are placing high priority on employee morale and engagement. New is the executive director of Oxford University School. 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 . There was a reception area, a 10 x 10 room with two tables and 6 chairs and another office. On a separate visit, she said, they found no employee present. Any amount helps us keep producing quality journalism for Mississippi. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Create a recurring donation today to join our mission. Uncovering the scheme goes back further than you may realize. Uncovering the scheme goes back further than you may realize. 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. 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. Toy Truck Drive. 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. 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. By clicking submit, you agree to share your email address with Mississippi Today. We confirmed that it was John Davis who was making those approvals on the money. She explained that they were absolutely doing nothing in either center.. All TANF funds will go through the RFP process, Blanton said. We want to make our employees comfortable and proud to be a part of DHS.. We do not sell or share your information with anyone. And they did start an internal audit at the beginning of 2019. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. (WLBT) 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. 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. There was an error and we couldn't process your subscription. Michael Maurello, 56, worked as a payroll manager at the . (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. 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 purported messages also show a request from Favre asking members of the group to help to pay a $1 million debt Favre owed to the University of Southern Mississippi for the volleyball court he promised the school. Wooten said it appears as if the officials are attempting to try Davis case in the media. 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. Gov. JACKSON, Miss. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. To learn more about our cartoon syndication services. 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. "Thats to create the transparency. Mr. Michel took orders, and millions of dollars, from a Malaysian financier who sought to gain political influence in the U.S., prosecutors said. If you share our stories on social media, please tag us in your posts using. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? a proud member of the Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. 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. There was an error and we couldn't process your subscription. 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. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. Our stories may appear on pages with ads, but not ads specifically sold against our stories. I'm the Executive Director. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. According to the auditor's office, the classes never took place. This material may not be published, broadcast, rewritten, or redistributed. He attended public schools there and then obtained an undergraduate degree from the University of Mississippi. Mississippi welfare embezzlement scandal: What we know so far. 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. 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. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. As we do with all of our partners that receive Families First funding through Mississippi Community Education Center, we evaluate their services and outcomes and review their expenses, New wrote.
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