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. 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.. 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. Any amount helps us keep producing quality journalism for Mississippi. The audit released less than a year later said that according to its budget, Victory Sports used the nearly $1.4 million welfare subgrant to pay for staff and coaches, a program design fee, equipment, an onsite nurse, marketing and other administration costs, and to purchase a $20,000 trailer and a $70,000 vehicle. 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. In July 2019, he announced he would resign by the end of the month. 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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. But fast forward to that afternoon session and my cell phone began to vibrate. Webb attached a letter in her email to Davis, showing her organization had terminated their contract with WWISCAA. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. 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. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. The director, John Davis, who retired in 2019 from the Department of Human Services, was one of six people charged in what the state auditor, Shad White, said was the largest embezzlement scheme that the office had seen in at least 20 years. 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. Help keep the momentum going by rejoining our member community 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.". . 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. Reginald Johnson had been with MDHS since 2007. Brett DiBiase was a former professional wrestler with World Wrestling Entertainment,who later worked at DHS as the deputy director of transformational change, according to his LinkedIn page. {"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)"}}}} This material may not be published, broadcast, rewritten, or redistributed. 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, 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. The February 2020 internal report claimed that an employee of 100 Black Men falsified timesheets to pay people who were not working at the nonprofit and that they were using federal money to buy personal items for staff and their family, according to the audit, which did not name the organization. What is the extent of the relationship between Tate Reeves and the News, mother and son? They dont need it at the moment. 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. Is there more to be revealed about the diversion of tax money to private schools? 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 we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. Johnson said, "Mr. Davis approached me and asked me did I not, did I not want to be there. Any web site our stories appear on must include a contact for your organization. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. According to the auditor's office, there are at least six people involved, though the investigation is ongoing. of interest to residents of Northeast Mississippi. A combination of both, the attorney answered. The report also said Victory Sports charged a fee for participants in the boot camp to attend and it did not conduct any kind of eligibility to ensure it was serving those in need. Create a recurring donation today to join our mission. That report ultimately led to todays arrests, it said. We do not sell or share your information with anyone. Maine resident sentenced to 3 years in prison for fraud and tax offenses stemming from $1.8 million embezzlement scheme; April 14, 2023. Hurst said, neither the FBI nor the United States Attorneys Office was contacted by the State Auditor or the Hinds County District Attorney about this investigation, although millions of federal dollars are alleged to have been stolen.. Please reload the page and try again. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform, White said. We believe that an informed Mississippi is a better Mississippi. I dont care how politically connected a person may be. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. 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. Copyright 2020 WLBT. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. We are placing high priority on employee morale and engagement. 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. "We are aware of these types of incidents. We want to make our employees comfortable and proud to be a part of DHS.. (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. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. I just wanted you to be aware of this information in case this comes up.. Thats to be open with how funds are distributed and who theyre going to.. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. 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. 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. You have to credit Mississippi Today. 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. It's unclear when they will be unsealed. 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. (WLBT) - 3 On Your Side is learning more about how the former head of the Mississippi Department of Human Services ran the agency and treated employees. 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. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law. Advertise with Us. Davis has pleaded not guilty. Read more. And they did start an internal audit at the beginning of 2019. Uncovering the scheme goes back further than you may realize. And at that point we did, Blanton said. You may opt-out by. 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. by Anna Wolfe, Mississippi Today June 22, 2021, This and is republished here under a Creative Commons license.
. 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. 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. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. It ends today.. 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. Michael Maurello, 56, worked as a payroll manager at the . They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. - 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 . JACKSON, Miss. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. 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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. All rights reserved. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. Copyright 2023 Nexstar Media Inc. All rights reserved. Up to $70 million was misspent in the scheme, according to Mississippi Today. We hear from a former employee who is just one of many who were fired by Davis. We do not sell or share your information with anyone. 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. "We look forward to this moving through the justice system to a final disposition.". 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. Jones said as a result of the lost funding, 100 Black Men had to cancel some upcoming afterschool and ACT prep programs, but that they would continue other services, such as administering vaccines and a student field trip to Alabama. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. You cant edit our stories, except to reflect relative changes in time, location and editorial style. 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. We confirmed that it was John Davis who was making those approvals on the 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. 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. 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. Phil Bryant's office in June 2019. 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. Republish our articles for free, online or in print, under a Creative Commons license. The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. 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. 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. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. Any chance you and Nancy can help with that? We work to find them. She also received first place in the regional Green Eyeshade Awards in 2021 for Public Service in Online Journalism and 2020 for Business Reporting, and the local Bill Minor Prize for Investigative Journalism in 2019 and 2018 for reporting on unfair medical billing practices and hunger in the Mississippi Delta. Follow him on Twitter @gbolognaCL. 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 professional wrestler to go to a luxury drug rehabilitation center in California, the state auditor announced Wednesday. There really hadnt been the internal auditing capability, the program integrity ability before that we had at that point that was created, explained DHS Chief Communications Officer Danny Blanton. But their counsel argued that a broader order that prevented White and Anderson from discussing Davis tenure overall such as policies, procedures and events separate from the criminal charges would be too restrictive and prevent them from being transparent with the public about ongoing investigations and findings. 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. Their own outcome reports that they sent the state each month, which were meant to show how many people they served, contained nonsensical figures, Mississippi Today first reported. John Davis worked atDHS for nearly three decades, eventually rising to director in 2016. As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Records are kept for all cases from the last 20 years. Theres a lot of flexibility given for how states use TANF funds. Much more remains to be revealed, including questions such as: She also received first place in the regional Green Eyeshade Awards in 2021 for Public Service in Online Journalism and 2020 for Business Reporting, and the local Bill Minor Prize for Investigative Journalism in 2019 and 2018 for reporting on unfair medical billing practices and hunger in the Mississippi Delta. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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. By clicking submit, you agree to share your email address with Mississippi Today. JACKSON, Miss. Representatives for the nonprofits have not returned several calls and emails over the last year. Create a recurring donation today to join our mission. Copyright 2020 WLBT. The defendants used a variety of business entities and schemes to defraud the taxpayers, investigators said. 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. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. Everything was going well. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? Here is what we know about them: John Davis was appointed director of DHS by former Gov. 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. He attended public schools there and then obtained an undergraduate degree from the University of Mississippi. 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. Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. 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. 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. 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Jean Carroll Rape Trial, JPMorgan Stock Set For Second-Best Day This Year After First Republic Takeover, First Republic Taken Over By JP Morgan After Regulators Shut It Down, Texas Mass Shooting: Police Have Zero Leads On Suspect Accused Of Killing 5 In Execution-Style Shooting, Weekend Box Office: Super Mario Bros. Will Hit $1 Billion In Sales On Sunday, Studio Says, White House Correspondents Dinner: Biden And Roy Wood Jr. Take Shots At Fox News And GreeneAnd Bidens Age, This Stock Market Indicator Is The Weakest Its Ever BeenAnd Other Warning Signs Are Flaring, Montana Restricts Gender-Affirming CareHere Are All The States With Similar Bans Or Restrictions, You stuck your neck out for me: Brett Favre used fame and favors to pull welfare dollars, Phil Bryant had his sights on a payout as welfare funds flowed to Brett Favre, 8 revelations from Part 1 of The Backchannel investigation. "MDHS self-reported the information that initiated this investigation to former Gov. A phone number for Ms. McGrew was busy. A top scholar, he won a Rhodes Scholarship and earned a Master of Science degree from Rhodes College in England.
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