Nonprofits made most of these purchases, which obscured the spending from public view. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. Logan Reeves, a spokesman for the auditor's office, said all the arrests were made Wednesday. "I now have the opportunity to focus on my family at home and pursue a position outside of state government," Davis wrote in a statement announcing his resignation. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. By the time these meetings occurred in April, July and August of 2020 former welfare department director John Davis, who was indicted last year for his critical role in the alleged scheme, had been retired for about a year. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. 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). Credit: MDHS Twitter A judge in the ongoing welfare embezzlement case is balancing the public's interest in learning how officials misspent tens of millions of federal dollars with a defendant's right to a fair trial. Davis was appointed executive director of the Mississippi Department of Human Resources by then-Governor Phil Bryant in January, 2016. Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. MDHS officials say former director John Davis created an environment of Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. You can only publish select stories individually not as a collection. Reginald Johnson had been with MDHS since 2007. Indictments were not found on the electronic courts site for Hinds County. Representatives for the nonprofits have not returned several calls and emails over the last year. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. As we do with all of our partners that receive Families First funding through Mississippi Community Education Center, we evaluate their services and outcomes and review their expenses, New wrote. 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. MDHS discusses largest embezzlement scheme in state history, upcoming Phil Bryant's office in June 2019. 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.. 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. Copyright 2020 WLBT. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. New is the executive director of Oxford University School. 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. 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. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. Mississippi's Ex-Welfare Director, 5 Others Arrested Over - NPR We look forward to this moving through the justice system to a final disposition.. We are placing high priority on employee morale and engagement. JACKSON, Miss. White launched the initial investigation into how Davis administered welfare. It ends today.. Advertise with Us. JACKSON, Miss. The community action agency did not return calls to Mississippi Today Tuesday morning. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. 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. 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. by Anna Wolfe, Mississippi Today December 28, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.. Before they exited their car, a woman was unlocking the door and waving them in. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. MDHS Embezzlement Part 1: Charges and evidence Officials charged Davis almost two years ago with conspiracy, embezzlement or fraud by a public official and making false statements to defraud the government. 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. We do appreciate the partnership with Victory Sports and Pauls work. 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. 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. The latest breaking updates, delivered straight to your email inbox. JACKSON, Miss. Republish our articles for free, online or in print, under a Creative Commons license. Johnson says Davis then asked everyone to put away their cellphones and called him into the hallway. Purported text messages obtained by Mississippi Today show that Favre and Prevacus founder Jake Vanlandingham offered the governor and nonprofit director shares of Prevacus and offered to buy the head of MDHS a Ford F-150 Raptor truck in return for their help. Former Mississippi Welfare Director Charged With Embezzling Millions Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. 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). Copyright 2020 WLBT. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Here is what we know about them: John Davis was appointed director of DHS by former Gov. 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. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. It is also charged that DiBiase was paid state money for drug education work that he did not perform. Help keep the momentum going by rejoining our member community today. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. (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. Look for the "Republish This Story" button underneath each story. 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. 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. If you share our stories on social media, please tag us in your posts using. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. This investigation demonstrates the strengthened controls we have put in place to identify, investigate, and prosecute fraud, waste, and abuse at any level, by any individual, MDHS Executive Director Robert G. Bob Anderson said. He attended public schools there and then obtained an undergraduate degree from the University of Mississippi. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. 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.. To learn more about our cartoon syndication services. In July 2019, he announced he would resign by the end of the month.
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