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. 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. 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. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. 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. Tate Reeves appointed the agencys current director, Bob Anderson, in March of 2020. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. 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. Mississippi's Ex-Welfare Director, 5 Others Arrested Over - NPR Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN Uncovering the scheme goes back further than you may realize. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. JACKSON, Miss. Wooten also said that its impossible to separate the discussion of Davis criminal culpability, as it relates to the narrow criminal charges against him, from the overall alleged scheme that occurred under his watch. DiBiase is the son of well-known former pro wrestler Ted DiBiase. White has called for a full forensic audit of MDHS. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. - 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 . Republish our articles for free, online or in print, under a Creative Commons license. "He asked me, he said do you know who I am? 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. White launched the initial investigation into how Davis administered welfare. Toy Truck Drive. 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. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. 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. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. JACKSON, Miss. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. 2023 www.clarionledger.com. Please refresh the page and/or try again. (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. Copyright 2020 WLBT. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. The Hinds County District Attorney secured an indictment on December 14, 2021. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. Skip to content. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. . NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. "Thats to create the transparency. 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. Davis resigned as head of MDHS in July, 2019. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Any amount helps us keep producing quality journalism for Mississippi. 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. 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. Johnson said, "Mr. Davis approached me and asked me did I not, did I not want to be there. We are verifying those as well to determine the validity of such. (WLBT) 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. Up to $70 million was misspent in the scheme, according to Mississippi Today. 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.". Former MDHS employee arrested for embezzlement - WJTV of interest to residents of Northeast Mississippi. As a nonprofit, your support is what powers our work. And at that point we did, Blanton said. An accountant involved in a a major embezzlement scheme has pleaded guilty to her role in a staggering theft of welfare money in Mississippi, the poorest state in the U.S. Hinds County Circuit. 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. 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. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. You may opt-out by. This material may not be published, broadcast, rewritten, or redistributed. MDHS self-reported the. We moved quickly and quietly in the auditors office to put a stop to the DHS scheme before any more money was taken, and now is the time to use every investigative resource available to uncover all the fraud that remains., The story about the MDHS scandal first broke late Wednesday afternoon, Feb. 5, 2020. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. 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. 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,. 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.. 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. MDHS discusses largest embezzlement scheme in state history, upcoming policy changes, Beloved Mississippi school bus driver killed during crash with 18-wheeler, Eleven players with Mississippi ties selected in 2023 NFL Draft, Truck possibly connected to Hinds County jail escape found in Newton County, Paraplegic fisherman speaks to Beulah Baptist Church, Belhaven football puts a smile on the face of little girl, City of Byram awarded thousands of state dollars for infrastructure projects, 58-year-old man shoots brother after argument over a dog in Hazlehurst, Request a First Alert Weather School Visit, Advertising Non-Discrimination Certification. Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. 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. 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. 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. 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. 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. Also, we have had a number of complaints concerning his services. Brett DiBiase pleads guilty in human services embezzlement scheme A relative newcomer to Mississippi politics, Shadrach Shad Tucker White is 34 years old and was born in Sandersville in Jones County, MS. Johnson says he never received anything other than glowing employee reviews. All rights reserved. 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. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. 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.". State auditors said Ms. New and Mr. New concealed the embezzlement using fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures. In doing so, we have identified concerns with Victory Sports expense reports and services. Matter of fact I had gotten a promotion to another department, Johnson said. I just wanted you to be aware of this information in case this comes up.. Nine of them have pleaded guilty to embezzlement charges . 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.. Help keep the momentum going by rejoining our member community today. All rights reserved. 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. Thats to be open with how funds are distributed and who theyre going to.. He said I'm going to call your supervisor and I need you in the meantime I need you to go back into the classroom and get your property and get out of my classroom right now, said Johnson. Theres a lot of flexibility given for how states use TANF funds. . 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). As a subscriber, you have 10 gift articles to give each month. 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. MDHS Embezzlement Part 1: Charges and evidence When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. Former DHS director, wrestler arrested in 'largest public embezzlement Mississippi welfare scheme: Former state official pleads guilty in We do appreciate the partnership with Victory Sports and Pauls work. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. No one has been charged in connection with these purchases. following organizations: Whoops! You cant edit our stories, except to reflect relative changes in time, location and editorial style. Michael Maurello, 56, worked as a payroll manager at the . Contests. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018.
