Thats to be open with how funds are distributed and who theyre going to.. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. and I told him I was fine with it, you know that I was okay. A former top state official in Mississippi pleaded guilty Thursday to state and federal charges in connection to an embezzlement scheme that auditors say misused millions of welfare dollars,. What it looks like is that one side of the story is being put out there, Wooten said. There was an error and we couldn't process your subscription. It's unclear when they will be unsealed. Uncovering the scheme goes back further than you may realize. A combination of both, the attorney answered. (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. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. 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. 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. 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 self-reported the information that initiated this investigation to former Gov. Davis resigned as head of MDHS in July, 2019. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. 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. But fast forward to that afternoon session and my cell phone began to vibrate. As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. Instances of fraud and abuse in Mississippis welfare system were widespread, including among other organizations who received subgrants from the Families First nonprofits. He said I'm going to call your supervisor and I need you in the meantime I need you to go back into the classroom and get your property and get out of my classroom right now, said Johnson. Mr. DiBiase, who comes from a professional wrestling family, did not immediately respond to an email request for comment. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. 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. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. Check back for updates. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Johnson says he had heard rumblings from other employees but didn't pay much attention. 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.". 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. 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.. 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. Earlier news reports indicated that the initial inquiry into the MDHS scandal may have been kicked off by Governor Bryant himself. The money was stolen from TANF funds, federal money entrusted to the state for needs of the poor. Mississippi's former welfare director, four colleagues and a former pro wrestler have been charged with carrying out a multimillion-dollar embezzlement scheme to siphon public money from needy. Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. Tate Reeves appointed Anderson, former director of the Medicaid Fraud Control Unit in the Attorney Generals office, to clean up the agency in the aftermath. She said that you were disrespectful.". Paul Lacoste did not return calls Tuesday morning. White was appointed State Auditor by then-Governor Phil Bryant in 2018, when State Auditor Stacy Pickering resigned. You cant edit our stories, except to reflect relative changes in time, location and editorial style. You can only publish select stories individually not as a collection. You can only publish select stories individually not as a collection. We have been told by officials with the Mississippi Department of Human Services that former Executive Director John Davis ran the department in an atmosphere of fear and intimidation. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. Zach New was arrested in connection with the Mississippi Department of Human Services embezzlement scheme earlier this week. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). ( WJTV) - A former employee for the Mississippi Department of Human Services (MDHS) was arrested for embezzlement after an investigation by the Investigations Division of . According to the auditor's office, Davis and another DHS employee made fake invoices to pay Brett DiBiase a former pro wrestler who later became a DHS employee with money intended to helppoor families. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. MDHS officials say former director John Davis created an environment of fear and intimidation, John Davis is indicted in an embezzlement scheme involving millions of dollars, 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. (WLBT) As a nonprofit, your support is what powers our work. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. We do not sell or share your information with anyone. The former director of Mississippis 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 wrestler to go to a luxury drug rehabilitation center, the state auditor announced on Wednesday. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. 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. NEMiss.NEWS is a locally owned and operated online news magazine containing news, information, opinion, etc. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. What is the extent of the relationship between Tate Reeves and the News, mother and son? . Any amount helps us keep producing quality journalism for Mississippi. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. 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. Great Jones Cookware Review: Is It Worth Buying? She explained that they were absolutely doing nothing in either center.. Phil Bryant's office in June 2019. The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. 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. All rights reserved. 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. 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. Since then, the subgrantee process has changed and the state plan for TANF reflects those changes. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. The first announcement of the arrests was apparently made on the website of the (Brookhaven, MS) Daily Leader at 4:51 p.m. Wednesday, Feb. 5. of interest to residents of Northeast Mississippi. The latest breaking updates, delivered straight to your email inbox. 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. Johnson says he never received anything other than glowing employee reviews. 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. Help keep the momentum going by rejoining our member community today. We look forward to this moving through the justice system to a final disposition.. 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 also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Here is what we know about them: John Davis was appointed director of DHS by former Gov. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. . When it comes to finding the misspending detailed in the indictments, this was the atmosphere at the agency at the time. 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.. Copyright 2020 WLBT. - 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 . 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 .

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