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. A combination of both, the attorney answered. There was an error and we couldn't process your subscription. MDHS sits down to discuss the embezzlement case for the first time since the news broke a week ago. New is the executive director of Oxford University School. And they did start an internal audit at the beginning of 2019. Under the plea agreement, the State recommends that Davis be sentenced to 90 years with 32 years of that sentence to be served in prison, as well as be required to pay restitution in the amount of. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. 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. All rights reserved. Amazon Has Uncanny Dupes of CB2's Popular Dining Chair for Hundreds Less. ( WJTV) - A former employee for the Mississippi Department of Human Services (MDHS) was arrested for embezzlement after an investigation by the Investigations Division of . He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. Theyve also started bringing in subgrantees for training on whats expected and how they can best meet federal guidelines. Hall of Fame Gold Jacket Dinner on August 4, 2016 at the Canton Memorial Civic Center in Canton, Ohio. . Mr. DiBiase never gave those classes, auditors said, because he was being treated for an opioid addiction at the Rise in Malibu rehab center in California. (WLBT) "MDHS would like to thank the Office of the State Auditor investigators for their diligent work in seeing this investigation through," the post said. We hear from a former employee who is just one of many who were fired by Davis. 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 Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. 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.". Records are kept for all cases from the last 20 years. (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. Davis resigned as head of MDHS in July, 2019. According to the auditor's office, the classes never took place. Before they exited their car, a woman was unlocking the door and waving them in. The state auditors office said it would not be making any additional comments. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. Transparency: Is Mississippi spending too much or not enough money on childrens programs? All of this is being put in place to make sure the sins of the past never recur in the future, added Blanton. - 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 . Gov. As a nonprofit, your support is what powers our work. 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. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Any web site our stories appear on must include a contact for your organization. And at that point we did, Blanton said. We believe that an informed Mississippi is a better Mississippi. Prevacus, a pharmaceutical company that was working on a concussion treatment and which Favre was a top investor in, also allegedly received $2.15 million in allegedly stolen funds from the scheme, according to Mississippi Today. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. 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.. In July 2019, he announced he would resign by the end of the month. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. All six people charged are Mississippi residents, including the former W.W.E. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. She received the National Press Foundations 2020 Poverty and Inequality Award. John Davis, who last year retired from the Department of Human Services, used some of the funds to pay for Brett DiBiase, a former professional wrestler, to go to drug rehab, the state auditor said. 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.. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. 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. 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. 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. You can only publish select stories individually not as a collection. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. The funds mostly came from a federal welfare grant program administered by the Mississippi Department of Human Services, and both the head of the nonprofit and the former head of the MDHS have. "Thats to create the transparency. . The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. Seven New England fishermen charged with tax evasion and failing to file returns "Chapitos" charged in department's latest actions to disrupt flow of illegal fentanyl and other dangerous drugs Brookhaven is in Lincoln County in the southwest quadrant of Mississippi. 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. 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. Here is what we know about them: John Davis was appointed director of DHS by former Gov. We look forward to this moving through the justice system to a final disposition.. 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. 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. She explained that they were absolutely doing nothing in either center.. 2023, Hearst Television Inc. on behalf of WAPT-TV. State auditors did not say what precipitated the investigation and did not give a specific dollar amount for the money that they say was embezzled, only that it was in the millions. Hurst said federal law enforcement was not aware of the MDHS investigation until they read about it in media reports. They then converted funds to their personal use and concealed the conversion through various fund transfers, fraudulent documents, at least one forged signature and deceptive accounting measures, investigators said. Any amount helps us keep producing quality journalism for Mississippi. Feds: State auditor kept them in the dark on Mississippi welfare embezzlement bust. Our stories may appear on pages with ads, but not ads specifically sold against our stories. 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. 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. Though text messages show Bryant accepted an offer to receive Prevacus shares after he left office, Bryant told Mississippi Today he had no intention of accepting the stock. following organizations: Whoops! Special agents from the office of State Auditor Shad White have arrested John Davis, the former director of the Mississippi Department of Human Services, and five others in a multimillion-dollar embezzlement scheme. 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. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. We do appreciate the partnership with Victory Sports and Pauls work. 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.
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