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. 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.. 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. Much more remains to be revealed, including questions such as: The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. 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. However, in saying that, we want to be good stewards of all financial support. You can only publish select stories individually not as a collection. following organizations: Whoops! - 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 . 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. DHS went on camera with WLBT to answer questions about what happened and what they've changed to prevent the problem from happening again. John Davis, several others face charges, arrested by state auditor's office. 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. 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. It's unclear when they will be unsealed. "We look forward to this moving through the justice system to a final disposition.". He attended public schools there and then obtained an undergraduate degree from the University of Mississippi. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. 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. Jones said as a result of the lost funding, 100 Black Men had to cancel some upcoming afterschool and ACT prep programs, but that they would continue other services, such as administering vaccines and a student field trip to Alabama. She explained that she quit due to fear of losing her license and the requirements of the supervisor. Oxford University School executive director connected to DHS You deserve answers. I dont care how politically connected a person may be, Mr. White said. You can only publish select stories individually not as a collection. To learn more about our cartoon syndication services. Several people were arrested and charged on Feb. 5, 2020. JACKSON, Miss. Send any friend a story As a subscriber, you have . Nonprofits made most of these purchases, which obscured the spending from public view. 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. Follow him on Twitter @gbolognaCL. 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. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. 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. Johnson said, "she said well I did speak with Mr. Davis and he asked for you to be terminated. 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. Show your support>>. 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. Looking for something special to get your mom for Mothers Day? 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. 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. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. Anne McGrew is the accountant for the Mississippi Community Education Center. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. There was an error and we couldn't process your subscription. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. But fast forward to that afternoon session and my cell phone began to vibrate. 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. Punjab refutes Shahid Khaqan's embezzlement allegations in flour scheme Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. We do appreciate the partnership with Victory Sports and Pauls work. 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. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. We hear from a former employee who is just one of many who were fired by Davis. Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. Republish our articles for free, online or in print, under a Creative Commons license. By clicking submit, you agree to share your email address with Mississippi Today. Look for the "Republish This Story" button underneath each story. 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. You cant edit our stories, except to reflect relative changes in time, location and editorial style. 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. We are placing high priority on employee morale and engagement. All rights reserved. Anderson recently told a reporter that his agency had reinstated the practice of sending letters to subgrantees who are suspected of misusing grant funds, which he said Davis administration had stopped. We prefer Author Name, Mississippi Today in the byline. Shortly after last years arrests in the largest reported public embezzlement scheme in state history, a whistleblower disclosed several previously unreported fraud allegations to the welfare department regarding one of its federal grant recipients. 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 did reach out to Davis attorney Merrida Coxwell for comment. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Several people were arrested and charged on Feb. 5, 2020. A phone number for Ms. McGrew was busy. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. 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. 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. Uncovering the scheme goes back further than you may realize. Bluff City Life. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? 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. I said well what is the reason? Read more. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. 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. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. Mr. Michel took orders, and millions of dollars, from a Malaysian financier who sought to gain political influence in the U.S., prosecutors said. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Fugees Rapper Pras Michel Found Guilty in Illegal Foreign Influence Scheme Johnson says he never received anything other than glowing employee reviews. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. 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. Our stories may appear on pages with ads, but not ads specifically sold against our stories. If that doesnt happen, that money will go to a deserving charity.. Connecting the dots: the MDHS embezzlement scandal The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. Copyright 2020 WLBT. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. In welfare scandal, judge weighs public interest versus the right to a 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 documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. 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. Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN Matter of fact I had gotten a promotion to another department, Johnson said. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Anyone can read what you share. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. 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. Former DHS director, wrestler arrested in 'largest public embezzlement 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. If you share our stories on social media, please tag us in your posts using. Davis may face trial in September. We believe that an informed Mississippi is a better Mississippi. They dont need it at the moment. Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. 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. Brett Favre Scandal: Alleged $8 Million Welfare Scam, Explained - Forbes Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. . That report ultimately led to todays arrests, it said. 2023 www.clarionledger.com. Look for the "Republish This Story" button underneath each story. We work to find them. We do not sell or share your information with anyone. 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. Auditor:State agencies must improve when it comes to cybersecurity. Skip to content. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. Reginald Johnson had been with MDHS since 2007. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . Help keep the momentum going by rejoining our member community today. We confirmed that it was John Davis who was making those approvals on the money. {"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)"}}}} NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. By the time these meetings occurred in April, July and August of 2020 former welfare department director John Davis, who was indicted last year for his critical role in the alleged scheme, had been retired for about a year. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. 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. New sent a similar email to former Department of Human Services Director Christopher Freeze, who took over for Davis a few months after Davis retired in 2019. Boston police officers acquitted in overtime fraud case MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. 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. MDHS discusses largest embezzlement scheme in state history - WLOX With your help, we've gotten a lot done but we're not finished yet! 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. Brookhaven is in Lincoln County in the southwest quadrant of Mississippi. 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. Nine of them have pleaded guilty to embezzlement charges . Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. White confirmed in an interview earlier today that Governor Bryant, himself a former state auditor, was indeed the whistleblower who brought the case to the state auditors office in June. 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. 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. NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. MDHS Embezzlement Part 1: Charges and evidence and I told him I was fine with it, you know that I was okay. 0:53. DHS concealed alleged fraud after welfare scandal - Mississippi Today All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. 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. 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. Michael Maurello, 56, worked as a payroll manager at the . Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. So,there was nothing illegal about those transfers, only how it was spent after that. 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. 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.. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. 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. 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Farmington City Clerk Arrested for Embezzlement Mississippi Office of Up to $70 million was misspent in the scheme, according to Mississippi Today. Representatives for the nonprofits have not returned several calls and emails over the last year. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Before they exited their car, a woman was unlocking the door and waving them in. 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. We look forward to this moving through the justice system to a final disposition.. Former director of MDHS and others arrested in largest public 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. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. Shortly after last year's arrests in the largest reported public embezzlement scheme in state history, a whistleblower disclosed several previously unreported fraud allegations to the welfare department regarding one of its federal grant recipients. Gov. You cant edit our stories, except to reflect relative changes in time, location and editorial style. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. 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. 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. 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. And they did start an internal audit at the beginning of 2019. Heres an attempt to connect the players and what little is known thus far of the plot in this shameful drama: Mississippi state auditors officials were to meet Monday with FBI agents to brief the Feds on the unfolding Mississippi Department of Human Services (MDHS) embezzlement scandal. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? This material may not be published, broadcast, rewritten, or redistributed. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. According to a Mississippi Today review of public records, the agency sent out 110 letters during roughly the last year under Anderson compared to four letters in fiscal year 2019 under Davis. Brett DiBiase pleads guilty for his part in DHS embezzlement scheme - WAPT Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. The funds in question were part of the Temporary Assistance for Needy Families program, which is administered by DHS. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. 0:27. Mr. White said the arrests stemmed from an eight-month investigation into the misappropriation of funds from the Temporary Assistance for Needy Families program, which the state welfare agency administers.
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