You may opt-out by. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the 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. 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. However, in saying that, we want to be good stewards of all financial support. Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. 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. Officials charged Davis almost two years ago with conspiracy, embezzlement or fraud by a public official and making false statements to defraud the government. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. We confirmed that it was John Davis who was making those approvals on the money. 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. 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. 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. If you share our stories on social media, please tag us in your posts using. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. 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. Uncovering the scheme goes back further than you may realize. What it looks like is that one side of the story is being put out there, Wooten 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. Tate Reeves appointed the agencys current director, Bob Anderson, in March of 2020. "Thats to create the transparency. 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. Follow him on Twitter @gbolognaCL. (WLBT) - 3 On Your Side is learning more about how the former head of the Mississippi Department of Human Services ran the agency and treated employees. following organizations: Whoops! by Anna Wolfe, Mississippi Today December 28, 2021, This and is republished here under a Creative Commons license.. I dont care how politically connected a person may be, Mr. White said. A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. 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. 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 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. By clicking submit, you agree to share your email address with Mississippi Today. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: 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. What is the extent of the relationship between Tate Reeves and the News, mother and son? Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. 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. 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. 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. 0:27. 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. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. Great Jones Cookware Review: Is It Worth Buying? And they did start an internal audit at the beginning of 2019. Several people were arrested and charged on Feb. 5, 2020. Republish our articles for free, online or in print, under a Creative Commons license. She received the National Press Foundations 2020 Poverty and Inequality Award. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. Everything was going well. 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. READ MORE: Coverage of Mississippis sprawling welfare scandal. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. The Temporary Assistance for Needy Families funds are part of a lawsuit filed against 38 people or companies that seeks to recover millions in federal funds. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Skip to content. But fast forward to that afternoon session and my cell phone began to vibrate. He resigned in July 2019, at about the same time the auditor's office began its investigation. (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. Many employees have said they were fired for menial things. 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. 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.. They dont need it at the moment. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. 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. Attempts to reach the sheriff's office for booking information were not successful. It ends today.. With your help, we've gotten a lot done but we're not finished yet! We do not sell or share your information with anyone. No one has been charged in connection with these purchases. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. Is there more to be revealed about the diversion of tax money to private schools? Representatives for the nonprofits have not returned several calls and emails over the last year. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? "Thats to create the transparency. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. 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. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. You cant edit our stories, except to reflect relative changes in time, location and editorial style. 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). 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. They then converted funds to their personal use and concealed the conversion through various fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures, investigators said. - 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 . To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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. JACKSON, Miss. Davis resigned as head of MDHS in July, 2019. MDHS discusses largest embezzlement scheme in state history, upcoming policy changes, Mother arrested for leaving children home alone to go to gym, police say, Suspect accused of kidnapping, raping child in South Memphis pleads not guilty, Whitehaven mourns loss of high school band director, City of Memphis takes formal stance on 5-year residency requirement for mayoral candidates. 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. 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. Davis attorney argues that when White and Anderson have discussed the case with the media, they have focused solely on Davis actions and not the several other employees who approved various purchases or the agency policies that he argues sanctioned Davis conduct. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. Newly unearthed text messages show Favre at the center of a scandal dating back to 2020, when a political appointee of the governor and nonprofit head, among others, were arrested for misusing federal welfare funds, some of which benefitted Favre personally as well as causes with which he was involved. Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. 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. 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. JACKSON, Miss. 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. 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. I said well what is the reason? ", Danny Blanton Chief Communications Officer with DHS did give us this statement. Reginald Johnson had been with MDHS since 2007. Also arrested were Brett DiBiase, a former professional wrestler; Nancy New, owner and director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.; News son, Zach New, assistant director of MCEC; Anne McGrew, identified as an accountant for MCEC, and Gregory Latimer Smith, a former employee of MDHS. 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. 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. In July 2019, he announced he would resign by the end of the month. 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,. All rights reserved. If that doesnt happen, that money will go to a deserving charity.. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. Phil Bryant's office in June 2019. "MDHS self-reported the information that initiated this investigation to former Gov. We confirmed that it was John Davis who was making those approvals on the money. Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. We work to find them. It is also charged that DiBiase was paid state money for drug education work that he did not perform. 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. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Any web site our stories appear on must include a contact for your organization. You do not have the right to treat taxpayer money as your own or to lie to the taxpayers about what youre doing with that money. Uncovering the scheme goes back further than you may realize. Nonprofits made most of these purchases, which obscured the spending from public view. All rights reserved. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Theres a lot of flexibility given for how states use TANF funds. We will continue to follow this case and update you as new developments are made available. You deserve answers. JACKSON, Miss. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. 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. He added that, Anything they gave to the campaign will be there waiting to return to the taxpayers and help the people it was intended for. 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. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. According to MDHS, investigators said Lashanda Feazell, while Director of Procurement at MDHS, used the agencys credit card to pay her personal cellular phone bills in the amount of $5,741.39 during the period of August 2018 through January 2021. 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 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. 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 . 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. Create a recurring donation today to join our mission. Mississippi welfare embezzlement scandal: What we know so far. 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. Photo gallery: Equestrian program at Mississippi College, Nurse recounts horrors inside a Yazoo City nursing home, Coverage of Mississippis sprawling welfare scandal, Creative Commons Attribution-NoDerivatives 4.0 International License, Proudly powered by Newspack by Automattic. 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. Johnson says he never received anything other than glowing employee reviews. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. Here is what we know about them: John Davis was appointed director of DHS by former Gov. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. A combination of both, the attorney answered. Johnson said, "Mr. Davis approached me and asked me did I not, did I not want to be there. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. A phone number for Ms. McGrew was busy. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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. ( WJTV) - A former employee for the Mississippi Department of Human Services (MDHS) was arrested for embezzlement after an investigation by the Investigations Division of . Gov. 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. She also worked as an investigative reporter for the Center for Public Integrity and Jackson Free Press, the capital citys alternative newsweekly. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. New described issues with their partner, Victory Sports Foundation owned by former football player Paul Lacoste, who was paid to conduct a boot camp-style fitness program, often attended by professionals and lawmakers. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. Our stories may appear on pages with ads, but not ads specifically sold against our stories. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England. Matter of fact I had gotten a promotion to another department, Johnson said. 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. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. That report ultimately led to todays arrests, it said. Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. Wooten pushed back on this argument, repeatedly asking the attorney representing White and Anderson from the state attorney generals office how the gag order prevents White from doing his job, namely auditing and investigating government spending. The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. Nine of them have pleaded guilty to embezzlement charges . 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. So,there was nothing illegal about those transfers, only how it was spent after that. Please reload the page and try again. I dont care how politically connected a person may be. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. According to the auditor's office, the classes never took place. 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. "MDHS self-reported the information that initiated this investigation to former Gov. We look forward to this moving through the justice system to a final disposition.. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said.
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