Uncovering the scheme goes back further than you may realize. All rights reserved. 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. 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. By clicking submit, you agree to share your email address with Mississippi Today. Emails obtained by Mississippi Today provide greater insight into the scope and type of foolery occurring within the federal grants. I just wanted you to be aware of this information in case this comes up.. Several people were arrested and charged on Feb. 5, 2020. wrestler Brett DiBiase, 31, who state auditors said was paid with welfare funds for teaching classes about drug use. by Anna Wolfe, Mississippi Today June 22, 2021, This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
. We are placing high priority on employee morale and engagement. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Anyone can read what you share. A phone number for Ms. McGrew was busy. Please reload the page and try again. Any amount helps us keep producing quality journalism for Mississippi. 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. Ex-Mississippi DHS head arrested in embezzlement scheme, auditor says a proud member of the Shad White:Transparency: Is Mississippi spending too much or not enough money on childrens programs? 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. Rumor was that some MDHS employees brought the matter to Bryants attention in June, and that Governor Bryant pointed White to the problem. She explained that they were absolutely doing nothing in either center.. And at that point we did, Blanton said. We hear from a former employee who is just one of many who were fired by Davis. The report also said Victory Sports charged a fee for participants in the boot camp to attend and it did not conduct any kind of eligibility to ensure it was serving those in need. DHS went on camera with WLBT to answer questions about what happened and what theyve changed to prevent the problem from happening again. Connecting the dots: the MDHS embezzlement scandal If youre thinking of altering your workout routine, youre probably looking for new exercises and equipment to help you reach your fitness goals. MDHS paid Mississippi Community Education Center $19,404 two days before the state auditor's office arrested the News and former Human Services Executive Director John Davis as part of the. 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. "I now have the opportunity to focus on my family at home and pursue a position outside of state government," Davis wrote in a statement announcing his resignation. 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. 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. 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. DHS went on camera with WLBT to answer questions about what happened and what they've changed to prevent the problem from happening again. 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. The latest breaking updates, delivered straight to your email inbox. A former Department of Human Services employee, Latimer Smith, 26, was also arrested, according to Mr. White. The announcement came from the office of Mississippi State Auditor, Shadrach Tucker White. MDHS released a statement about the arrests. 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. 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.. 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). Check back for updates. I dont care how politically connected a person may be. New described issues with their partner, Victory Sports Foundation owned by former football player Paul Lacoste, who was paid to conduct a boot camp-style fitness program, often attended by professionals and lawmakers. Feazell later turned herself into MDHS and Hinds County officials on Monday, February 28, 2022. Create a recurring donation today to join our mission. 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. Johnson said, "I was a special investigator, special investigator, a DHS investigator.". We look forward to this moving through the justice system to a final disposition.. Matter of fact I had gotten a promotion to another department, Johnson said. All TANF funds will go through the RFP process, Blanton said. He had the latitude to unilaterally disperse funds as he felt necessary or wanted to, Blanton confirmed. We are verifying those as well to determine the validity of such. Copyright 2020 WLBT. Former DHS director, wrestler arrested in 'largest public embezzlement case in state history'. With your help, we've gotten a lot done but we're not finished yet! Much more remains to be revealed, including questions such as: Former MDHS Director John Davis pleads guilty to defraud conspiracy Mississippi Auditor Shad White attends Cindy Hyde-Smith's watch party at the Westin Jackson Wednesday, November 27, 2018. Johnson says he never received anything other than glowing employee reviews. A major part of Reevess education agenda has been to funnel state tax money to New Summit and other private schools in the state, including another one owned by New and son. We believe that an informed Mississippi is a better Mississippi. What is the relationship between Davis and the News? Here's an attempt to connect the players and what little is known thus far of the plot in this shameful drama:
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