mdhs embezzlement scheme

0:27. The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. 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.. 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. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Gov. 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. If you share our stories on social media, please tag us in your posts using. 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. Several people were arrested and charged on Feb. 5, 2020. 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. 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 total amount of money lost to these schemes has not yet been determined, but the loss already exceeds any embezzlement . We work to find them. To learn more about our cartoon syndication services. 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. The state auditors office said it would not be making any additional comments. Great Jones Cookware Review: Is It Worth Buying? 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. Much more remains to be revealed, including questions such as: Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. 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. Transparency: Is Mississippi spending too much or not enough money on childrens programs? We believe that an informed Mississippi is a better Mississippi. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. READ MORE: Coverage of Mississippis sprawling welfare scandal. Look for the "Republish This Story" button underneath each story. 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.". As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. of interest to residents of Northeast Mississippi. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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. 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. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. 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. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. We will continue to follow this case and update you as new developments are made available. Phil Bryant's office in June 2019. Create a recurring donation today to join our mission. Republish our articles for free, online or in print, under a Creative Commons license. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. 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. 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. HINDS COUNTY, Miss. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. We want to make our employees comfortable and proud to be a part of DHS.. We do not sell or share your information with anyone. This is a developing story. The agency has still not adopted a comprehensive approach to responding to and reporting suspected fraud; additionally, the agency did not take all the needed steps to verify suspected fraud was investigated timely and misappropriated monies were returned, the audit stated. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England. 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. On Tuesday, Hinds County Circuit Court Judge Adrienne Wooten spoke strongly in defense of a gag order in the case of former welfare director John Davis, saying that media coverage of the scandal threatens the courts ability to assemble an impartial jury. 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. Is there more to be revealed about the diversion of tax money to private schools? She said that you were disrespectful.". 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. 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. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. JACKSON, Miss. 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. Uncovering the scheme goes back further than you may realize. 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). 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. 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. 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. Please refresh the page and/or try again. In July 2019, he announced he would resign by the end of the month. 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. 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. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. 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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. a proud member of the Indictments were not found on the electronic courts site for Hinds County. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Uncovering the scheme goes back further than you may realize. 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. We prefer Author Name, Mississippi Today in the byline. 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. 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