Looking for something special to get your mom for Mothers Day? The agency expects to soon file civil charges against Davis and others who received the funds. 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. 0:27. Former MDHS Director John Davis pleads guilty to defraud conspiracy 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. 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. She explained that they were absolutely doing nothing in either center.. JACKSON, Miss. We confirmed that it was John Davis who was making those approvals on the money. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. - 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 . We do not sell or share your information with anyone. Mississippi's former welfare director, four colleagues and a former pro wrestler have been charged with carrying out a multimillion-dollar embezzlement scheme to siphon public money from needy. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Michael Maurello, 56, worked as a payroll manager at the . Our stories may appear on pages with ads, but not ads specifically sold against our stories. 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. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. Mississippi Today retrieved a 2017 email from Family Resource Center director Christi Webb, in which she described to Davis allegations of blatant deception at one of their partners, the local community action agency in Greenville, Warren-Washington-Issaqueena-Sharkey Community Action Agency or WWISCAA. Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. Please refresh the page and/or try again. A phone number for Ms. McGrew was busy. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. So,there was nothing illegal about those transfers, only how it was spent after that. The first announcement of the arrests was apparently made on the website of the (Brookhaven, MS) Daily Leader at 4:51 p.m. Wednesday, Feb. 5. We want to make our employees comfortable and proud to be a part of DHS.. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. That report ultimately led to todays arrests, it said. 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. Nancy New and her son Zach New are scheduled to stand trial on welfare embezzlement charges in October. The community action agency did not return calls to Mississippi Today Tuesday morning. (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. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Thats to be open with how funds are distributed and who theyre going to.. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Help keep the momentum going by rejoining our member community today. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. Anyone can read what you share. Ex-Mississippi official accused of embezzling money meant for poor There was also no answer at the main office of the Mississippi Community Education Center in Jackson. We look forward to this moving through the justice system to a final disposition.. This is a developing story. 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. Before they exited their car, a woman was unlocking the door and waving them in. 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 defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. "MDHS self-reported the information that initiated this investigation to former Gov. We will continue to follow this case and update you as new developments are made available. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. It was not immediately clear Wednesday night if Mr. Davis or the other five charged had lawyers, and no one answered the phone at the homes of Mr. Davis, Ms. New, Mr. New and Mr. Smith. By clicking submit, you agree to share your email address with Mississippi Today. A combination of both, the attorney answered. 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Brett DiBiase pleads guilty for his part in DHS embezzlement scheme - WAPT As a nonprofit, your support is what powers our work. 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. 0:00. Under the plea agreement, the State recommends that Davis be sentenced to 90 years with 32 years of that sentence to be served in prison, as well as be required to pay restitution in the amount of. We prefer Author Name, Mississippi Today in the byline. All rights reserved. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. John Davis, several others face charges, arrested by state auditor's office. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. Please reload the page and try again. DiBiase is the son of well-known former pro wrestler Ted DiBiase. 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. 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. 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. 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 indictments were filed under seal in Hinds County, Reeves said. 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. Many employees have said they were fired for menial things. The former director of Mississippi's 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. As a nonprofit, your support is what powers our work. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. We believe that an informed Mississippi is a better Mississippi. Punjab refutes Shahid Khaqan's embezzlement allegations in flour scheme You can only publish select stories individually not as a collection. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Phil Bryant's office in June 2019. 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. We believe that an informed Mississippi is a better Mississippi. "MDHS self-reported the information that initiated this investigation to former Gov. 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.. Contests. Any web site our stories appear on must include a contact for your organization. Brett DiBiase pleads guilty in human services embezzlement scheme No one has been charged in connection with these purchases. 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. Mississippi welfare embezzlement scandal: What we know so far. All six people charged are Mississippi residents, including the former W.W.E. In doing so, we have identified concerns with Victory Sports expense reports and services. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Records are kept for all cases from the last 20 years. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. She explained that she quit due to fear of losing her license and the requirements of the supervisor. 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. 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. Zach New, Nancy's son, is the assistant executive director of the Mississippi Community Education Center and is also accused ofusing TANF funds for personal use as well as for investing in private medical device companies. In July 2019, he announced he would resign by the end of the month. We certainly do not want to falsely accuse. 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. 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. 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. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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 Any chance you and Nancy can help with that? HINDS COUNTY, Miss. White launched the initial investigation into how Davis administered welfare. by Anna Wolfe, Mississippi Today December 28, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.. 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. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . 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. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Follow him on Twitter @gbolognaCL. 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. 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. Send any friend a story As a subscriber, you have . 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. 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. READ MORE: Coverage of Mississippis sprawling welfare scandal. Create a recurring donation today to join our mission. You deserve answers. 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.. Create a recurring donation today to join our mission. 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. Uncovering the scheme goes back further than you may realize. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. 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. Any web site our stories appear on must include a contact for your organization. We confirmed that it was John Davis who was making those approvals on the money. 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. It's unclear when they will be unsealed. Read more. The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. 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. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Auditor: DHS scandal continued after investigation began The money was stolen from TANF funds, federal money entrusted to the state for needs of the poor. Is there more to be revealed about the diversion of tax money to private schools? 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. April 14 (UPI) -- A former worker at the Art Institute in Chicago has pleaded guilty to carrying out a $2 million embezzlement scheme. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. I dont care how politically connected a person may be. 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.". "We are aware of these types of incidents. 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. 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). Get the Android Weather app from Google Play, Chinese electric vehicle brands expand to global, Met Gala: Rihanna, Jared Leto as Choupette, Kim K., Crisler still running for sheriff despite indictment, Met Gala 2023 live updates: Fashion highlights from, Canadian folk singer Gordon Lightfoot dies at 84, MS Insight for April 30, 2023: Steffey and Thompson, Poll: Mississippians strongly favor Presleys ideas, Poll: Presley slips, Gov. If youre thinking of altering your workout routine, youre probably looking for new exercises and equipment to help you reach your fitness goals. 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. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Oxford University School executive director connected to DHS Republish our articles for free, online or in print, under a Creative Commons license. Thats to be open with how funds are distributed and who theyre going to.. 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. Gov. The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. 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. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. The centers director had made a call to her warning her that we were there. DHS concealed alleged fraud after welfare scandal - Mississippi Today So,there was nothing illegal about those transfers, only how it was spent after that. "He asked me, he said do you know who I am? 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. Former Mississippi Welfare Director Charged With Embezzling Millions 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Paul Lacoste did not return calls Tuesday morning. 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. "Thats to create the transparency. 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. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. 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. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. It ends today.. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. 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 discusses largest embezzlement scheme in state history - WLOX 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. In welfare scandal, judge weighs public interest versus the right to a John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says They explained to her that there had been no activities and no clients and they were told to come up with some regardless. Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. 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. Check out these great suggestions. MDHS is concerned about the authenticity of MCEC documents due to submission of numerous versions of the same request in a monitoring visit, Anderson wrote to the auditors office in March in response to the latest report. You have to credit Mississippi Today. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. 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. 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. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. 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.. 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. Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'.
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