John Davis, several others face charges, arrested by state auditor's office. Webb said she and her organizations financial officer visited WWISCAAs Greenville Center and found just one vehicle in the parking lot. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says Phil Bryant's office in June 2019. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Davis resigned as head of MDHS in July, 2019. 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 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. 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. NEMiss.NEWS was founded in 2014 and is a division of Shivimage, LLC, and began publishing in early 2015. 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. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. This spring, Le Creuset has introduced an exciting new shade thats already selling fast: shallot, a soft lavender with pink and slight gray undertones. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. 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. Auditor:State agencies must improve when it comes to cybersecurity. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. She explained that she quit due to fear of losing her license and the requirements of the supervisor. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. . 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. If you share our stories on social media, please tag us in your posts using. According to the auditor's office, the classes never took place. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. As a nonprofit, your support is what powers our work. Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. 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. Davis is indicted along with Nancy New, her son Zach New, Anne McGrew, Latimer Smith and Brett DiBiase. 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. 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. As a nonprofit, your support is what powers our work. You may opt-out by. Mr. White said the arrests stemmed from an eight-month investigation into the misappropriation of funds from the Temporary Assistance for Needy Families program, which the state welfare agency administers. You can only publish select stories individually not as a collection. Uncovering the scheme goes back further than you may realize. Gov. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. She explained that they were absolutely doing nothing in either center.. Boston police officers acquitted in overtime fraud case (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. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Great Jones Cookware Review: Is It Worth Buying? Punjab refutes Shahid Khaqan's embezzlement allegations in flour scheme A judge in the ongoing welfare embezzlement case is balancing the publics interest in learning how officials misspent tens of millions of federal dollars with a defendants right to a fair trial. April 14 (UPI) -- A former worker at the Art Institute in Chicago has pleaded guilty to carrying out a $2 million embezzlement scheme. Reginald Johnson had been with MDHS since 2007. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. There was an error and we couldn't process your subscription. 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. Former MDHS employee arrested for embezzlement - WJTV You can only publish select stories individually not as a collection. Look for the "Republish This Story" button underneath each story. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. A DHS spokesperson rejected the auditors narrative that the department did not disclose fraud reports to the auditors office. 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. Tate Reeves appointed the agencys current director, Bob Anderson, in March of 2020. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. 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. But when the State Auditors Office later asked state agency officials at two separate meetings in 2020 if they knew of any other potential fraud, they did not relay the report, the audit released Tuesday said. Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama: Mugshots: Ex-welfare chief, wrestler, others charged in Mississippi fraud case. 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. We do not sell or share your information with anyone. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. She said its unfair that State Auditor Shad White, who initially investigated the scheme, and current Mississippi Department of Human Services Director Bob Anderson are free to make comments about Davis leadership while Davis is bound by a gag order and unable to respond. Federal authorities and internal investigators at Mississippi Department of Human Services eventually began investigating the subgrantee, 100 Black Men of Jackson, an agency spokesperson told Mississippi Today on Tuesday. Any web site our stories appear on must include a contact for your organization. Sign up for our daily newsletter to get the latest updates on the Mississippi welfare scandal. Anyone can read what you share. 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. 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. 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. Whites statement said John Davis, former head of the Mississippi Department of Human Services, had been arrested and charged in connection with a multi-million-dollar embezzlement scheme.. Connecting the dots: the MDHS embezzlement scandal The cast of characters, villains and heroes, in the Mississippi Department of Human Resources (MDHS) case seems to grow by the hour. White and Anderson did not object to being included in the gag order, agreeing to refrain from discussing Davis criminal culpability. So,there was nothing illegal about those transfers, only how it was spent after that. Follow him on Twitter @gbolognaCL. Brookhaven is in Lincoln County in the southwest quadrant of Mississippi. He then earned a Doctor of Laws degree from Harvard University. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The latest breaking updates, delivered straight to your email inbox. "Thats to create the transparency. You have to credit Mississippi Today. following organizations: Whoops! By clicking submit, you agree to share your email address with Mississippi Today. They were among 15 current and former Boston police officers charged in the alleged overtime scheme involving the evidence control unit. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. But fast forward to that afternoon session and my cell phone began to vibrate. Records are kept for all cases from the last 20 years. We will continue to follow this case and update you as new developments are made available. Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. 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. Uncovering the scheme goes back further than you may realize. You cant edit our stories, except to reflect relative changes in time, location and editorial style. The community action agency did not return calls to Mississippi Today Tuesday morning. The matter was referred to the Hinds County District Attorney Office for criminal prosecution after terminating her employment. 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. 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. 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. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. 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.. and I told him I was fine with it, you know that I was okay. Thats to be open with how funds are distributed and who theyre going to.. The scheme came [] Five plead not guilty in MDHS embezzlement scheme - Vicksburg Daily News What is the extent of the relationship between Tate Reeves and the News, mother and son? 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. 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. Johnson says he had heard rumblings from other employees but didn't pay much attention. 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. When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. 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. He added that, Anything they gave to the campaign will be there waiting to return to the taxpayers and help the people it was intended for. 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. 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.
