Any amount helps us keep producing quality journalism for Mississippi. Brett DiBiase pleads guilty in human services embezzlement scheme Keisha Rowe Mississippi Clarion Ledger 0:00 2:16 Brett DiBiase, a former deputy administrator for the Mississippi Department. The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. You have to credit Mississippi Today. 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. Davis has pleaded not guilty. Criminal Investigation Press Releases for April 2023 The money was stolen from TANF funds, federal money entrusted to the state for needs of the poor. This is a developing story. By clicking submit, you agree to share your email address with Mississippi Today. Also, we have had a number of complaints concerning his services. Newis accused of using TANF funds for her personal use as well as for investing in private medical device companies. (WLBT) - It was one week ago that the news broke of whats been called the largest public embezzlement case in state history. By clicking submit, you agree to share your email address with Mississippi Today. He then earned a Doctor of Laws degree from Harvard University. White has called for a full forensic audit of MDHS. Michael Maurello, 56, worked as a payroll manager at the . Among other things, it is charged that state money was diverted to pay for drug rehabilitation treatment for former wrestler DiBiase at an exclusive drug rehab clinic in Malibu, California. The former director of the Mississippi Department of Human Services and several others have been arrested in what the state auditor said is the largest public embezzlement case in state history.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. 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. Phil Bryant's office in June 2019. Wooten also said that its impossible to separate the discussion of Davis criminal culpability, as it relates to the narrow criminal charges against him, from the overall alleged scheme that occurred under his watch. Phil Bryant's office in June 2019. And at that point we did, Blanton said. You can only publish select stories individually not as a collection. Davis resigned as head of MDHS in July, 2019. To learn more about our cartoon syndication services. 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. You have to credit Mississippi Today. What is the relationship between John Davis and former wrestler and drug abuser Brett DiBiase? 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. Records are kept for all cases from the last 20 years.The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said. Fugees Rapper Pras Michel Found Guilty in Illegal Foreign Influence Scheme Although the total amount of money embezzled has not been determined, Auditor White characterized it as the largest public embezzlement case in state history.. John Davis, former director of the Mississippi Department of Human Services, was arrested within the largest alleged public embezzlement case in state history. As a nonprofit, your support is what powers our work. Mike Hurst, the U.S. Attorney for the Southern District of Mississippi, complained on Thursday, Feb. 6, the day after the arrests, that his office had not been notified in advance by the state auditors office. JACKSON, Miss. Several people were arrested and charged on Feb. 5, 2020. Great Jones Cookware Review: Is It Worth Buying? The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. 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 . Advertise with Us. 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. 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. (WLBT) The Hinds County District Attorney secured an indictment on December 14, 2021. Paul Lacoste did not return calls Tuesday morning. Get the Android Weather app from Google Play, Chinese electric vehicle brands expand to global, Met Gala: Rihanna, Jared Leto as Choupette, Kim K., Crisler still running for sheriff despite indictment, Met Gala 2023 live updates: Fashion highlights from, Canadian folk singer Gordon Lightfoot dies at 84, MS Insight for April 30, 2023: Steffey and Thompson, Poll: Mississippians strongly favor Presleys ideas, Poll: Presley slips, Gov. State agencies must improve when it comes to cybersecurity, Your California Privacy Rights / Privacy Policy. 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. 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. The state auditors office said it would not be making any additional comments. It ends today.. DHS made a post on Facebook Wednesday saying it "self-reportedthe information" that led to the investigation. DHS concealed alleged fraud after welfare scandal - Mississippi Today 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 been charged with and pleaded not guilty to embezzlement and fraud for their roles in the scheme. 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. Matter of fact I had gotten a promotion to another department, Johnson said. Johnson said, "I was a special investigator, special investigator, a DHS investigator.". Others doing this kind of thing are on notice: this will not be tolerated now, White said in a statement. So,there was nothing illegal about those transfers, only how it was spent after that. Anna Wolfe, a native of Tacoma, Wa., is an investigative reporter writing about poverty and economic justice. Pakistan Muslim League-Nawaz (PML-N) senior leader Shahid Khaqan Abbasi's embezzlement allegations targeting the flour scheme in Punjab have upset the interim government, as it termed the former . We hear from a former employee who is just one of many who were fired by Davis. But fast forward to that afternoon session and my cell phone began to vibrate. The former director of Mississippi's 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. 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. We do appreciate the partnership with Victory Sports and Pauls work. Johnson said, "she said well I did speak with Mr. Davis and he asked for you to be terminated. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Copyright 2020 WLBT. All TANF funds will go through the RFP process, Blanton said. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place, investigators said. We work to provide free, accessible news for everyone to create a more informed Mississippi and hold public officials accountable. Anne McGrew is the accountant for the Mississippi Community Education Center. They explained to her that there had been no activities and no clients and they were told to come up with some regardless. 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. State auditors said Mr. Davis, of Brookhaven, Miss., conspired with the administrators at a nonprofit, the Mississippi Community Education Center, and the organizations accountant to defraud taxpayers and create phony invoices. They said Mr. Davis, along with Ms. New and Mr. New, used some of the embezzled funds to invest in medical device companies. Uncovering the scheme goes back further than you may realize. We prefer Author Name, Mississippi Today in the byline. Special agents from the office of State Auditor Shad White have arrested John Davis, who retired after 28 years with DHS on July 31 . 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. You cant edit our stories, except to reflect relative changes in time, location and editorial style. However, in saying that, we want to be good stewards of all financial support. Start a recurring donation of any amount to further this work and help hold public officials and those in power accountable. Mr. Michel took orders, and millions of dollars, from a Malaysian financier who sought to gain political influence in the U.S., prosecutors said. And they did start an internal audit at the beginning of 2019. John Davis was indicted along with several others in the largest embezzlement and fraud scheme in Mississippi history. Blanton explained that the U.S. Department of Health and Human Services Office of Inspector General had told the state agency not to interfere with its investigation and that the auditors office was already aware of the federal investigators involvement. Brett Favre Scandal: Alleged $8 Million Welfare Scam, Explained - Forbes 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. 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. Nancy New and her son are also accused of transferring millions in TANF funds to their private businesses, White said. Anderson has ushered in new procurement practices and financial controls to increase accountability among the departments welfare grantees. MDHS released a statement about the arrests. I'm the Executive Director. All persons arrested by the Mississippi Office of the State Auditor are innocent until proven guilty in a court of law. Check out these great suggestions. Mississippi welfare embezzlement scandal: What we know so far. 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. 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. The welfare agency possessed no records showing the outcomes of those programs, an agency spokesperson said. Contact Giacomo "Jack" Bologna at 601-961-7282 or gbologna@gannett.com. That ultimately led to (Wednesday's) arrests," DHS officials said in a statement. Nancy New is a long-time political ally and financial supporter of Mississippis new Governor, Tate Reeves. 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. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. 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. After DHS employees reported their findings to the Governor, the State Auditor was notified and the investigation was launched. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. Please reload the page and try again. 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. She also received first place in the regional Green Eyeshade Awards in 2021 for Public Service in Online Journalism and 2020 for Business Reporting, and the local Bill Minor Prize for Investigative Journalism in 2019 and 2018 for reporting on unfair medical billing practices and hunger in the Mississippi Delta. HINDS COUNTY, Miss. Therefore, while doing our due diligence, Paul LaCoste was asked not to use Families First for Mississippis brand and his funding was suspended. There was also no answer at the main office of the Mississippi Community Education Center in Jackson. Brett DiBiase pleads guilty in human services embezzlement scheme We are verifying those as well to determine the validity of such. . 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. As a reminder, the scheme includes more than $4.15 million dollars in embezzled government money. 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. The News also directed millions in public money to their private businesses, used the money personally, and concealed the transactions, according to the auditors. All rights reserved. (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. According to the auditor's office, the classes never took place. Reginald Johnson had been with MDHS since 2007. Copyright 2023 Nexstar Media Inc. All rights reserved. The auditors office contradicted this notion, stating that the department has an obligation to ensure grant monies are expended properly. by Anna Wolfe, Mississippi Today June 22, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.. Former Green Bay Packers Quarterback and Hall of Famer Brett Favre has been accused of using his "special access" to former Mississippi Gov. 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. 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. DHS spokesperson Danny Blanton rejected the auditors narrative that the department concealed fraud reports from the auditors office. For example, the people in charge of spending welfare dollars paid $5 million to help University of Southern Mississippi build a new volleyball stadium, paid retired NFL quarterback Brett Favre $1.1 million for a promotional gig, bought a horse ranch for former high school running back Marcus Dupree, paid over $3 million to Brett DiBiases brother Ted DiBiase Jr., also a retired WWE wrestler, to conduct professional development, hired officials friends and family members and paid them six-figure salaries, and paid rents on properties they owned that sat empty.
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