The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. She explained that they were absolutely doing nothing in either center.. This is a developing story. 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. Former Director of DHS and others arrested in largest public - WJTV Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in 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. He then earned a Doctor of Laws degree from Harvard University. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. Former MDHS employee arrested for embezzlement - WJTV The agency expects to soon file civil charges against Davis and others who received the funds. 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. You have to credit Mississippi Today. Auditor: DHS scandal continued after investigation began 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. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. 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. I'm the Executive Director. Check out these great suggestions. 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. Before they exited their car, a woman was unlocking the door and waving them in. Logan Reeves, a spokesman for the auditor's office, said all the arrests were made Wednesday. New is the executive director of Oxford University School. 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. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. 0:53. Representatives for the nonprofits have not returned several calls and emails over the last year. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. 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. That report ultimately led to todays arrests, it said. We look forward to this moving through the justice system to a final disposition.. 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. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. 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. 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. Johnson said, "I was a special investigator, special investigator, a DHS investigator.". Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. 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. All rights reserved. Johnson says he had heard rumblings from other employees but didn't pay much attention. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. Look for the "Republish This Story" button underneath each story. And at that point we did, Blanton said. Show your support>>. Phil Bryant's office in June 2019. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. by Anna Wolfe, Mississippi Today June 22, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
. Bryant denied introducing Favre or Vanlandingham to the nonprofit director, Nancy New. 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. We could not cease funding until we had that letter from the state auditor (in January 2020). 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. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. 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. Our stories may appear on pages with ads, but not ads specifically sold against our stories. Mississippi welfare embezzlement scandal: What we know so far. So,there was nothing illegal about those transfers, only how it was spent after that. Former MDHS Director, John Davis, is from Brookhaven, Lincoln County, and worked for MDHS in that county before his rise to the top of the state MDHS organization. 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. John Davis, several others face charges, arrested by state auditor's office. Farmington City Clerk Arrested for Embezzlement Mississippi Office of Theres a lot of flexibility given for how states use TANF funds. 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. Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. "Thats to create the transparency. JACKSON, Miss. 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. 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. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. 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,. 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. "MDHS self-reported the information that initiated this investigation to former Gov. White has called for a full forensic audit of MDHS. 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. Indictments were not found on the electronic courts site for Hinds County. Uncovering the scheme goes back further than you may realize. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. Is there more to be revealed about the diversion of tax money to private schools? 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. Any amount helps us keep producing quality journalism for Mississippi. April 14 (UPI) -- A former worker at the Art Institute in Chicago has pleaded guilty to carrying out a $2 million embezzlement scheme. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England. Mr. DiBiase never gave those classes, auditors said, because he was being treated for an opioid addiction at the Rise in Malibu rehab center in California. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. "He asked me, he said do you know who I am? We certainly do not want to falsely accuse. Up to $70 million was misspent in the scheme, according to Mississippi Today. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. The state auditors office said it would not be making any additional comments. Nonprofits made most of these purchases, which obscured the spending from public view. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. 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. We will continue to follow this case and update you as new developments are made available. Send any friend a story As a subscriber, you have . a proud member of the Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. With your help, we've gotten a lot done but we're not finished yet! You cant edit our stories, except to reflect relative changes in time, location and editorial style. Davis has pleaded not guilty. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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. All rights reserved. MDHS Embezzlement Part 1: Charges and evidence 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. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. 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. 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. Johnson said, "Mr. Davis approached me and asked me did I not, did I not want to be there. Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. Jackson faces 30 years and over $50,000 in fines if convicted on all counts. Davis is accused of creating fake invoices for DiBiase and for "creating a fraud scheme to take TANF funds to pay for personal investments in medical device companies.". Transparency: Is Mississippi spending too much or not enough money on childrens programs? 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. 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. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. Anne McGrew is the accountant for the Mississippi Community Education Center. Gov. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. Looking for something special to get your mom for Mothers Day? Whites statement said John Davis, former head of the Mississippi Department of Human Services, had been arrested and charged in connection with a multi-million-dollar embezzlement scheme.. 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. All rights reserved. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. Federal authorities and internal investigators at Mississippi Department of Human Services eventually began investigating the subgrantee, 100 Black Men of Jackson, an agency spokesperson told Mississippi Today on Tuesday. Create a recurring donation today to join our mission. 2023 www.clarionledger.com. 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. We confirmed that it was John Davis who was making those approvals on the money. The money was stolen from TANF funds, federal money entrusted to the state for needs of the poor. 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. Former Mississippi DHS Accountant Will Testify In Embezzlement Case Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. 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. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. 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. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. 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 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. 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. 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. {"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)"}}}}
Veve Ti Jean Petro,
Famous Boxing Judges,
Articles M
