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. "We look forward to this moving through the justice system to a final disposition.". Contests. The former head of the Mississippi Department of Human Services has been arrested as part of a multi-million dollar embezzlement scheme that among other things paid for a former . a proud member of the A phone number for Ms. McGrew was busy. 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. Punjab refutes Shahid Khaqan's embezzlement allegations in flour scheme Tate Reeves appointed the agencys current director, Bob Anderson, in March of 2020. 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. 0:27. Under the plea agreement, the State recommends that Davis be sentenced to 90 years with 32 years of that sentence to be served in prison, as well as be required to pay restitution in the amount of. The centers director had made a call to her warning her that we were there. 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. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. Any amount helps us keep producing quality journalism for Mississippi. 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. Former MDHS Director John Davis pleads guilty to defraud conspiracy Former MDHS employee arrested for embezzlement - WJTV MDHS is concerned about the authenticity of MCEC documents due to submission of numerous versions of the same request in a monitoring visit, Anderson wrote to the auditors office in March in response to the latest report. All rights reserved. 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Davis resigned as head of MDHS in July, 2019. Michael Maurello, 56, worked as a payroll manager at the . Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. 0:00. 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. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. HINDS COUNTY, Miss. Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. 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. following organizations: Whoops! Former DHS director, wrestler arrested in '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. ", Danny Blanton Chief Communications Officer with DHS did give us this statement. DHS went on camera with WLBT to answer questions about what happened and what they've changed to prevent the problem from happening again. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. A combination of both, the attorney answered. Read more. Phil Bryant's office in June 2019. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). 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. If youre thinking of altering your workout routine, youre probably looking for new exercises and equipment to help you reach your fitness goals. Theres a lot of flexibility given for how states use TANF funds. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. 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 . John Davis has been indicted in the largest embezzlement and fraud scheme in state history. Reginald Johnson had been with MDHS since 2007. Help keep the momentum going by rejoining our member community today. Suspected fraud can be reported to MDHS online any time by submitting the MDHS Fraud Tip Form athttps://www.mdhs.ms.gov/report-fraud/, calling the Fraud Tip Line at 1-(800)-299-6905, or email at fraud@mdhs.ms.gov. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. 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. 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. MDHS hires new law firm to recover misspent TANF money - WAPT 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. Uncovering the scheme goes back further than you may realize. . 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. 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. Several people were arrested and charged on Feb. 5, 2020. White and Anderson did not object to being included in the gag order, agreeing to refrain from discussing Davis criminal culpability. The Hinds County District Attorney secured an indictment on December 14, 2021. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. Mississippi's Ex-Welfare Director, 5 Others Arrested Over - NPR 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. a proud member of the 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. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? Records are kept for all cases from the last 20 years. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. Check back for updates. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. Gov. But fast forward to that afternoon session and my cell phone began to vibrate. 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. John Davis, several others face charges, arrested by state auditor's office. Kelly Clarkson's Home Collection Is Up to 74% Off During Way Day Deals, The Best Wayfair Way Day Deals 2023 Starting at $30. 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. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: 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.. 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. 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. Copyright 2020 WLBT. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. 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 that doesnt happen, that money will go to a deserving charity.. Former Mississippi Welfare Director Charged With Embezzling Millions JACKSON, Miss. 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. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. 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. Create a recurring donation today to join our mission. 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. Davis has pleaded not guilty. According to a Mississippi Today review of public records, the agency sent out 110 letters during roughly the last year under Anderson compared to four letters in fiscal year 2019 under Davis. If you share our stories on social media, please tag us in your posts using. The scheme came [] Five plead not guilty in MDHS embezzlement scheme - Vicksburg Daily News The latest breaking updates, delivered straight to your email inbox. The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. Uncovering the scheme goes back further than you may realize. 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. 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 two nonprofits ran an anti-poverty program called Families First for Mississippi, through which most of the money that was allegedly stolen, $4.15 million, or potentially misspent, $94 million, flowed. 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. Though text messages show Bryant accepted an offer to receive Prevacus shares after he left office, Bryant told Mississippi Today he had no intention of accepting the stock. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. "He asked me, he said do you know who I am? 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. Is there more to be revealed about the diversion of tax money to private schools? Connecting the dots: the MDHS embezzlement scandal Among other things, it is charged that state money was diverted to pay for drug rehabilitation treatment for former wrestler DiBiase at an exclusive drug rehab clinic in Malibu, California. MDHS discusses largest embezzlement scheme in state history - WLOX We will continue to follow this case and update you as new developments are made available. 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. 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. Former Director of DHS and others arrested in largest public - WJTV 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. Toy Truck Drive. 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. Copyright 2023 Nexstar Media Inc. All rights reserved. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. 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. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. Anne McGrew is the accountant for the Mississippi Community Education Center. So,there was nothing illegal about those transfers, only how it was spent after that. Follow him on Twitter @gbolognaCL. 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.". The state auditors office said it would not be making any additional comments. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. 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. If you share our stories on social media, please tag us in your posts using. Skip to content. We are verifying those as well to determine the validity of such. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Create a recurring donation today to join our mission. 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. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. Auditor:State agencies must improve when it comes to cybersecurity. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. 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). We look forward to this moving through the justice system to a final disposition.. We will continue to follow this case and update you as new developments are made available. By clicking submit, you agree to share your email address with Mississippi Today.