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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. The latest breaking updates, delivered straight to your email inbox. 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. They dont need it at the moment. But fast forward to that afternoon session and my cell phone began to vibrate. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. Everything was going well. Before they exited their car, a woman was unlocking the door and waving them in. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. "Thats to create the transparency. 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The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. 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. You can only publish select stories individually not as a collection. We want to make our employees comfortable and proud to be a part of DHS.. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. Phil Bryant and other officials in his home state in order to influence roughly $8 million in welfare payments for himself, pharmaceutical company Prevacus, and a volleyball court for the University of Southern Mississippi, according to an expose published last week Mississippi Todaythough Favre has not been charged criminally or accused of a crime. Also, we have had a number of complaints concerning his services. We certainly do not want to falsely accuse. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. 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. 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. To learn more about our cartoon syndication services. I dont care how politically connected a person may be. 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. a proud member of the To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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. 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. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. "MDHS self-reported the information that initiated this investigation to former Gov. So,there was nothing illegal about those transfers, only how it was spent after that. Records are kept for all cases from the last 20 years. 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. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. The money was stolen from TANF funds, federal money entrusted to the state for needs of the poor. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. 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. Show your support>>. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. 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. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . We work to find them. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. 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. Listen to this article Five of the six people accused in what could be the largest embezzlement scheme on record in Mississippi pleaded not guilty on Friday. Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. Any web site our stories appear on must include a contact for your organization. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. Several people were arrested and charged on Feb. 5, 2020. We will continue to follow this case and update you as new developments are made available. 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. 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 . Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. 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. This material may not be published, broadcast, rewritten, or redistributed. The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. 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 . Look for the "Republish This Story" button underneath each story. 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. Gov. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. 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. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. She explained that they were absolutely doing nothing in either center.. 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. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. 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. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. 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.. We believe that an informed Mississippi is a better Mississippi. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. 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.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. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. If you share our stories on social media, please tag us in your posts using. New is the executive director of Oxford University School. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. 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. Davis has pleaded not guilty. Wooten said it appears as if the officials are attempting to try Davis case in the media. Michael Maurello, 56, worked as a payroll manager at the . Blanton also said that since the department was still under contract with the nonprofits in the last months of 2019, the beginning of fiscal year 2020, it could not simply cut off their funding while auditors were investigating allegations. 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. 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. Nancy New was the owner and director of the Mississippi Community Education Center and New Learning, Inc. She also founded New Summit, a private school in Jackson. He attended a professional development conference led by Davis outside the department and he says the encounter left him confused and embarrassed. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. 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. The indictments were filed under seal in Hinds County, Reeves said. Davis may face trial in September. 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. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Webb attached a letter in her email to Davis, showing her organization had terminated their contract with WWISCAA. Two days after the State Auditor arrested the News, Davis, DiBiase, et al, Governor Reeves made a statement in which he said, I can tell you right now, anything they (the News) gave to the campaign is going to be moved to a separate untouched bank account., Reeves said he did not know how much of the money his campaign received was stolen from taxpayers. Please reload the page and try again. All rights reserved. It is also charged that DiBiase was paid state money for drug education work that he did not perform. 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. 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. Click to email a link to a friend (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), https://i0.wp.com/nemiss.news/wp-content/uploads/2020/02/DHS-arrests.jpg?fit=1200%2C600&ssl=1, https://nemiss.news/wp-content/uploads/2023/02/nemiss-full-logo-300x77.jpg, Connecting the dots: the MDHS embezzlement scandal, Officers investigate shots fired report near Blue Springs, Retiring fire chief Steve Coker reflects on years of service, Mississippi Community Education Center (MCEC). Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). Help keep the momentum going by rejoining our member community today. To learn more about our cartoon syndication services. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Copyright 2020 WLBT. We do not sell or share your information with anyone. Attempts to reach the sheriff's office for booking information were not successful. What it looks like is that one side of the story is being put out there, Wooten said. 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. All TANF funds will go through the RFP process, Blanton said. The community action agency did not return calls to Mississippi Today Tuesday morning. "We look forward to this moving through the justice system to a final disposition.". and I told him I was fine with it, you know that I was okay. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. The state auditors office said it would not be making any additional comments. Help keep the momentum going by rejoining our member community today. 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. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. John Davis, several others face charges, arrested by state auditor's office. 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. We did reach out to Davis attorney Merrida Coxwell for comment. Look for the "Republish This Story" button underneath each story. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. Contests. 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. Mike Hurst, the U.S. Attorney for the Southern District of Mississippi, complained on Thursday, Feb. 6, the day after the arrests, that his office had not been notified in advance by the state auditors office. 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. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. All rights reserved. I'm the Executive Director. 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. 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. All rights reserved. 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. HINDS COUNTY, Miss. 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. following organizations: Whoops! 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. What is the relationship between Davis and the News? Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? April 14 (UPI) -- A former worker at the Art Institute in Chicago has pleaded guilty to carrying out a $2 million embezzlement scheme. Nine of them have pleaded guilty to embezzlement charges . 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. We could not cease funding until we had that letter from the state auditor (in January 2020). 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. ( WJTV) - A former employee for the Mississippi Department of Human Services (MDHS) was arrested for embezzlement after an investigation by the Investigations Division of . The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. According to the auditor's office, the classes never took place. 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. Toy Truck Drive. 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. 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. 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. Any chance you and Nancy can help with that? Create a recurring donation today to join our mission. State auditors said Mr. Davis, of Brookhaven, Miss., conspired with the administrators at a nonprofit, the Mississippi Community Education Center, and the organizations accountant to defraud taxpayers and create phony invoices.

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