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. We are placing high priority on employee morale and engagement. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. 0:53. 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. Indictments were not found on the electronic courts site for Hinds County. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. If you share our stories on social media, please tag us in your posts using. We do not sell or share your information with anyone. Republish our articles for free, online or in print, under a Creative Commons license. 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. . According to the auditor's office, there are at least six people involved, though the investigation is ongoing. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. In July 2019, he announced he would resign by the end of the month. Create a recurring donation today to join our mission. Gov. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. 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. 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. 0:00. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. Brett Favre Scandal: Alleged $8 Million Welfare Scam, Explained - Forbes Advertise with Us. Please refresh the page and/or try again. 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. Toy Truck Drive. Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. He said I'm going to call your supervisor and I need you in the meantime I need you to go back into the classroom and get your property and get out of my classroom right now, said Johnson. 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. We will continue to follow this case and update you as new developments are made available. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. 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. 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. It's unclear when they will be unsealed. 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. JACKSON, Miss. HINDS COUNTY, Miss. 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. She said its unfair that State Auditor Shad White, who initially investigated the scheme, and current Mississippi Department of Human Services Director Bob Anderson are free to make comments about Davis leadership while Davis is bound by a gag order and unable to respond. A phone number for Ms. McGrew was busy. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Brookhaven is in Lincoln County in the southwest quadrant of Mississippi. The centers director had made a call to her warning her that we were there. 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,. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. 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. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. 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.. 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. You have to credit Mississippi Today. 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 . of interest to residents of Northeast Mississippi. Phil Bryant's office in June 2019. 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. By clicking submit, you agree to share your email address with Mississippi Today. State auditors did not say what precipitated the investigation and did not give a specific dollar amount for the money that they say was embezzled, only that it was in the millions. 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. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. You may opt-out by. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. The Hinds County District Attorney secured an indictment on December 14, 2021. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. 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 defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. MDHS discusses largest embezzlement scheme in state history, upcoming (WLBT) There is no division there when it comes to the criminal portion of the case, Wooten said. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. No one has been charged in connection with these purchases. 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 would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. People may have identified or suspected that something was amiss but, because of the atmosphere of fear and intimidation, they were afraid to say anything for fear of losing their jobs, noted Blanton. Look for the "Republish This Story" button underneath each story. 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. 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. We want to make our employees comfortable and proud to be a part of DHS.. READ OUR FULL MISSISSIPPI WELFARE COVERAGE, Audit: 5.5% of Mississippis unemployment payouts in 2020 were improper, Jill Biden visits Jackson State vaccination site, encourages Mississippians to get your shot, $9,500-a-month mortgage on his horse ranch, Anna Wolfe answers reader questions about the Mississippi welfare scandal, Welfare case judge shoots down Brett Favres attempts to dismiss charges, Creative Commons Attribution-NoDerivatives 4.0 International License, Proudly powered by Newspack by Automattic. Former MDHS Director John Davis pleads guilty to defraud conspiracy DHS concealed alleged fraud after welfare scandal - Mississippi Today To learn more about our cartoon syndication services. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. MDHS Embezzlement Part 1: Charges and evidence We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. 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.