Please reload the page and try again. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. There is no division there when it comes to the criminal portion of the case, Wooten said. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Nancy New was the owner and director of the Mississippi Community Education Center and New Learning, Inc. She also founded New Summit, a private school in Jackson. 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. 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. "MDHS self-reported the information that initiated this investigation to former Gov. 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. Skip to content. He resigned in July 2019, at about the same time the auditor's office began its investigation. Is there more to be revealed about the diversion of tax money to private schools? Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. Brett DiBiase pleads guilty for his part in DHS embezzlement scheme - WAPT Transparency: Is Mississippi spending too much or not enough money on childrens programs? Records are kept for all cases from the last 20 years. All rights reserved. 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). 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. 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. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Check back for updates. Johnson said, "I never had any problems prior to that. Davis also allegedly conspired to use welfare money, which his agency had granted to a nonprofit, to pay for DiBiases four-month long stint in a luxury rehab facility in California. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. He also denied knowing Favre and Vanlandingham were receiving public funding for Prevacus, though text messages suggest he knew. 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,. When White released the first audit outlining the scheme in May of 2020, he said Davis saw his appointment as head of human services in 2016 as an opportunity to build a kingdom over there. But in the last year, Whites office has declined on several occasions to publicly discuss the particulars of the criminal case. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. Our stories may appear on pages with ads, but not ads specifically sold against our stories. She received the National Press Foundations 2020 Poverty and Inequality Award. 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. Mississippi welfare scheme: Former state official pleads guilty in Representatives for the nonprofits have not returned several calls and emails over the last year. They dont need it at the moment. In a statement, the Department of Human Services said it had self-reported the information that initiated this investigation to the governors office in June 2019. Former MDHS Director John Davis pleads guilty to defraud conspiracy New is the executive director of Oxford University School. State auditors said Ms. New and Mr. New concealed the embezzlement using fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures. There was an error and we couldn't process your subscription. All rights reserved. If you share our stories on social media, please tag us in your posts using. We believe that an informed Mississippi is a better Mississippi. 0:53. Much more remains to be revealed, including questions such as: 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. 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. Wooten said it appears as if the officials are attempting to try Davis case in the media. 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. Oxford University School executive director connected to DHS Toy Truck Drive. Copyright 2020 WLBT. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. Uncovering the scheme goes back further than you may realize. 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. by Anna Wolfe, Mississippi Today December 28, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.. Nonprofits made most of these purchases, which obscured the spending from public view. It ends today.. Mississippi Community Education Center has also failed to turn over documents the agency needs to complete its forensic audit or conduct a full grant closeout the departments process for ensuring the nonprofit complied with grant requirements and spent the funds properly. and I told him I was fine with it, you know that I was okay. Davis and Smith are accused of fraudulently manufacturing documents to benefit DiBiase using TANF money, White said. Auditor Shad White said his office is still attempting to determine the total amount of money involved, but the "sprawling conspiracy" already exceeds any embezzlement scheme in recent years. John Davis has been indicted in the largest embezzlement and fraud scheme in state history. And they did start an internal audit at the beginning of 2019. It's unclear when they will be unsealed. 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. (T)heir immediate supervisor called a meeting with the staff in Myersville and told them that they had to document names of clients and activities performed in that center. 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.. Republish our articles for free, online or in print, under a Creative Commons license. Uncovering the scheme goes back further than you may realize. 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. We will continue to follow this case and update you as new developments are made available. At Davis direction, MCEC used TANF money received from DHS to pay for DiBiases opioid treatment at the Rise in Malibu facility, White said. 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. 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. A $50,000 surety bond covers Jackson's employment as the Farmington City Clerk. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. State Auditor Shad White said in a statement released Sunday, Tomorrow morning I am heading to FBI offices where my agents and I will brief them on the DHS scheme and make all the evidence we have gathered available. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. 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. All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. To republish online, simply click the button, copy the html code and paste into your Content Management System (CMS). Anyone can read what you share. 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. Former Art Institute worker pleads guilty to $2M embezzlement scheme - MSN Auditor: DHS scandal continued after investigation began As we reported, the Mississippi Community Education Center or MCEC was a sub grantee receiving TANF dollars that first flowed through DHS. The funds that were illegally obtained in this case were intended to help the poorest among us, Mr. White said in a statement Wednesday. Former DHS director, wrestler arrested in 'largest public embezzlement Any amount helps us keep producing quality journalism for Mississippi. Fugees Rapper Pras Michel Found Guilty in Illegal Foreign Influence Scheme 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. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. 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 suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. The Auditors office has made it clear that the investigation is ongoing and more arrests are still possible. 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Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.