Wednesday, February 5, 2020

Former DHS Director Arrested

State Auditor Shad White issued the following statement. 
Special agents from the office of State Auditor Shad White have arrested John Davis, the former Director of the Mississippi Department of Human Services (DHS); former DHS employee Latimer Smith; Dr. Nancy New, owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.; Zach New, Assistant Executive Director of MCEC; Anne McGrew, accountant for MCEC; and Brett DiBiase in connection with a multimillion-dollar embezzlement scheme. The indictments include a range of violations involving fraud and embezzlement.


Auditors concluded, after an eight-month investigation, that the accused conspired to illegally obtain millions in public funds from the Temporary Assistance for Needy Families (TANF) program administered by DHS. Defendants used a variety of business entities and schemes to defraud the taxpayers.

“The funds that were illegally obtained in this case were intended to help the poorest among us. The funds were instead taken by a group of influential people for their own benefit, and the scheme is massive. It ends today,” said Auditor White.

Davis and Smith stand accused of fraudulently manufacturing documents to enrich Brett DiBiase using TANF money. Davis and Smith created invoices to pay DiBiase TANF funds for teaching classes about drug abuse, but DiBiase was in a luxury rehabilitation facility for his own drug use in California at the time and did not perform the services. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform.

Nancy New and her son, Zach New, stand accused of using the News’ non-profit, MCEC, to pay for DiBiase’s drug treatment using TANF funds. At Davis’ direction, MCEC used TANF money received from DHS to pay for DiBiase’s opioid treatment at the Rise in Malibu facility. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place.

The News also stand accused of transferring millions in TANF funds to their private businesses. 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.

Finally, Davis and the News are accused of creating a fraud scheme to take TANF funds to pay for personal investments in medical device companies (Prevacus, Inc., and PreSolMD, LLC) in Florida.

“I don’t care how politically connected a person may be. You do not have the right to treat taxpayer money as your own or to lie to the taxpayers about what you’re doing with that money. Others doing this kind of thing are on notice: this will not be tolerated now,” said White.

All accused were indicted by a grand jury assembled by Jody Owens, District Attorney of Hinds County. District Attorney Owens and assistant district attorneys will prosecute the case.

“The Hinds County District Attorney’s Office looks forward to working with the State Auditor Shad White and his dedicated team to end public corruption in Mississippi,” said Owens. “The misuse of government funds designed for families in need will not be tolerated by our office and those who break the law will be prosecuted to the fullest extent possible.”

“We have worked tirelessly in the Auditor’s office to uncover this sprawling conspiracy, so I want to thank the investigators, auditors, and analysts who all assisted,” added White.

The total amount of money lost to these schemes has not yet been determined, but the loss already exceeds any embezzlement scheme in the records of the Auditor’s office. Records are kept for all cases from the last twenty years.

Because of the large amount of money involved, and until the full extent of the loss to the taxpayers is determined, this is considered an ongoing investigation by the Auditor’s office. There will be no additional comments at this time.

If convicted on all counts, the accused face hundreds of years in prison. Persons arrested by the Mississippi Office of the State Auditor are presumed innocent until proven guilty in a court of law.

Additional suspected fraud involving this case or any other can be reported to the Auditor’s office online any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275.

Kingfish note: State Auditor is now able to work with Hinds County District Attorney.   Amazing what a change in D.A.'s will do. 



80 comments:

Anonymous said...

Your the MAN Auditor Shad White!

Anonymous said...

Holy effing hell!

Anonymous said...

Close to 10 million stolen

This is way more effective than any lobbying gig!

And they can say they are dying after a few years and get out!

Then they can go with Lamar and dig up all their buried rolexes.

And MS is dead last why?

Anonymous said...

Is this Dr. Nancy New, founder of New Summit School - recipient of lots of special needs voucher money and filming location for Tate's "public school" ad?

Anonymous said...

Nancy New, Zach New and Brett DiBiase?

Damn! Shad's handing out ass whippings indiscriminately.

Anonymous said...

Is the same Dr. Nancy Whitten New...whose FB page is filled with Phil Bryant's pics?

Anonymous said...

Brett DiBiase, huh?

Anonymous said...

Zach New is listed at the Executive Director and Ann McGrew is listed as Accounting on the New Summit School website. Looks like they'll be a little short staffed this week.
https://www.newsummitschool.com/administration

Anonymous said...

"Damn! Shad's handing out ass whippings indiscriminately."

As well he should be! Glad to see it happening. Mississippi needs more like Shad! Party or connections be damned, he gonna do the right thing.

Anonymous said...

yes same nancy new as new summit and tater tot ads...dibiase is the son of ex wrestler the million dollar man (lol) Ted Dibiase and brother of Teddy Dibiase...all three were professional wrestlers.

Anonymous said...

That is NOT how one becomes the Million Dollar Man.

Anonymous said...

But they want to talk about the recipients people please it's so much fraud in Mississippi this is ridiculous. What a crocked state but everyone wants to down on the poor. Every month there is a different section of Mississippi government under investigation and you dummies don't know how to quit. And these are the people who are making 6 figures with greed in their heart for more.

TheClintonscantsuicideusall said...

Keep going Chad. I do hope he has a Security Detail, especially if he comes to Canton.

Anonymous said...

Way to go Shad! When will the shoe drop on Feel? Sorry I meant cowboy boot. Seems like a lot of his folks are getting exposed.

Anonymous said...

Shad, like most auditors, had little to do with this.

His staff likely received a report, did a basic investigation with the help of the DA, found easily accessible evidence from incompetent crooks, and asked the DA to file the indictment. In other words, the basic expectations of the job.

Nothing against the guy, but the state auditor's traditional role is to sign off on pre-made plans from staff, then take credit for their work, so he can move him up the political chain later.

His inner circle should lay off the "kickin' ass" posts on taxpayer time.

Anonymous said...

Take them food stamps now!!!!!!

Damn urban crooks getting all that money!!!

Wait

Anonymous said...

Big fish? Shad captured a leviathan!

Anonymous said...

@5:19pm - Yep

Anonymous said...

DHS Director appointed by Phil Bryant, who was a big fan of Families First.

https://courts.ms.gov/news/2018/07.31.18Family%20First%20afterstory.php?fbclid=IwAR0zS1np8FlMmVGWUAQPG6XYc32y9bv48zdUp1Ojq0AgSEdeYpc49bCEEXk

https://twitter.com/PhilBryantMS/status/1023978196977573888?s=20&fbclid=IwAR0kO08dumNsN9mtowULLPRteNRpgKEd8e6o8kLMMDpHaH4nLmZBkdJs8y0

Anonymous said...

5:19
You are either a disgruntled former employee or an accountant who is mad Shad is doing this job without an accounting certificate. Atleast he is proactive!

Anonymous said...

Dr New has a big page with lots of accolades on the Madison County Business League web site. Betcha Ms Collins is circling the wagons and doing some damage control.

Anonymous said...

Phil Bryant “should have known”. Isn’t that what they said when they sent Bernie up the river for life?

Anonymous said...

You know the new guy they put in charge of DHS quit in January after only a few months on the job.

Anonymous said...

@5:21
Yes we should stop investigating all types of criminal waste and abuse because we found this one certain type of waste and abuse!

Typical Smoothbrain.

Anonymous said...

Looks like the legislature and governor picked the wrong ones to drug test.

Anonymous said...

Their kind loves to pull themselves up by their own bootstraps. Oh, wait? Say what again about the new owner of the metro center?

Kim Wade said...

I need a job!

Anonymous said...

They are the little fish. Let’s see if they get big fish Phil

Anonymous said...

yet another bunch of film-flam artists. god must love mississippi scammers cause he makes so many of them.

Anonymous said...

DHS has a person in charge of their Program Integrity division. How did he let this slide??

Anonymous said...

5:19, what a stupid comment. He manages and directs the agency. They go where he tells them to go and do what he tells them to do. When Phil Bryant was auditor, the agency had the usefulness of a castrated bull. We finally have an honest auction that gets things done and you want to diminish his importance.

Anonymous said...

Won’t a damn thing happen. That’s Phil’s boy. Gov. Fordice also! If you don’t think his legacy lives on through Barbour well think again. You Mississippians will finally see the light. It’s a corrupt ass state. When Davis hit the door in 2019 he was dodging this very bullet. What a joke. Get after their ass Shad. Do go to MHP driver services. You will have to move. It would make DHS seem petty.

Anonymous said...

Go Shad, Marie Osmond is still fine as wine.

Anonymous said...

@6:00

Christopher Freeze was the former FBI agent in charge in Mississippi. Bet they brought him in to check things out without spilling the beans early.

Anonymous said...

6:40 DHS Program Integrity is a Division within the Agency, nothing is investigated unless approved by the Director. No way in hell will they investigate the boss. They may report it anonymously to the Feds if they happen to run across it accidentally!

Nothing can prevent someone that steals. I never would have guessed John Davis!!! It’s sad!

He was, I think a good County Director DHS, Lincoln County.

Anonymous said...

Anyone know who Latimer Smith is? The others I know of....

Anonymous said...

So, exactly how many of Phil appointees are now in prison or indicted?

Anonymous said...

Phil may very well go down as the Governor of the most corrupt administration in the history of this state (which is no small accomplishment). I'm sure his new consulting business will pick up by those looking for a way to "cut through" the red tape....wink wink.

Not really Triple H said...

Pick the biggest baddest pissed off dudes from Parchman's Unit 29 and let's have us a fundraiser with DiBiase and his boss in the form of a Tables Ladders and Chairs match, to benefit the poor of course.

Anonymous said...

Now they need to look at MDOC

Anonymous said...

5:43 - Is an 'accounting certificate' like a GED?

Anonymous said...

Where is all the vitriol and hate?

Thugs?

Dimocrats?

Libtards?

Where are all you asshats when millions get pilloried by Republican white suburbanites?

Did your computer quit?

Sack of hypercritical spineless jackasses

Anonymous said...

Exactly how does DiBiase fit into this picture? Did he work prior with the New family before going to rehab? And why did they pay for his rehab to begin with? Seems awful strange to me.

There are no coincidences said...

Follow the stench ... lead backs to PhilBilly and his consultants and family ...

Anonymous said...

Where is the Public Integrity Division of the Attorney General's Office? Why are they not prosecuting this instead of the Hinds County DA's Office? Could there not be a more glaring example of a public integrity issue?

Anonymous said...

7:02 You apparently are not reading all of the posts, because I have seen many posts (including my own) casting some serious shade on Phil and and band of pirates. Perhaps you need a little time in the serenity spa or some calming medication.

Anonymous said...

I hope Brett DiBiase's dad still has some of that million dollars floating around. He's going to need it to help bail out junior.

Anonymous said...

@5:19 p.m.

Lmao, you don't have a clue how extensive and technical fraud investigations can get. Sure, you have your amateurs stealing petty cash out there that take a week to investigate

Anonymous said...

7:06, Nancy funded a documentary amount Ted Dibiasi and clan several years ago. I think it was about fame, drug abuse, and God. Anywho, the entire group benefited from these relationships. Dad got a movie about himself. Brett worked at DHS until he went to rehab, doing very little, and when he left, they slid Ted Jr in.

A lot of good people lost their jobs for speaking up during all this. A lot of other, smaller divisions and programs were impacted by this, too. Money was being shifted around under the guise of Admin Support, but generally it was over the federal percentages and program to program transfers well outside limits. These actions go beyond state tax payer dollars. Check programs like LIHEAP, Community Services, Aging, Oakley Youth School... if dug deep enough, I’m willing to bet there are a lot of funds skimmed and moved around outside of TANF.

Anonymous said...

7:06 - I thought the same. Very odd!

Anonymous said...

I imagine the accountants (the unindicted ones) at New Summit School are at DefCon 2 going over the books this morning.

Anonymous said...

7:51 - so what's the point of the division?

How were millions of dollars embezzled without more DHS employees being aware?

What are the feds going to do?

Anonymous said...

the freedom now granted by our new governor is amazing. it’s as if he is green lighting actually getting us off the bottom. i’m sure this is a drop in the bucket of findings that can now come to light. we found our Donald Trump!

Anonymous said...

"Anyone know who Latimer Smith is? The others I know of..."

He's a young man, 25 or 26, who was probably drawn into this unknowingly, following the orders of his boss.

He's from Philadelphia, MS, has several brothers and good parents.

He played competitive soccer growing up with a local soccer club, therefore he made a lot of connections here locally.

He has dated a local girl for several years (last I knew) whose parents own or did own KFC franchises.

Absolute power corrupts absolutely said...

The state legislature changed policy making it very difficult for poor Mississippians to receive those benefits.

In turn, the state was supposedly running a surplus in those funds and was supposed to return that money to the federal government.

However, it was funneled to certain individuals to run new programs that were supposedly fiscally "conservative" in nature - teaching people how to be more self-sufficient, job skills training, etc etc

They enriched a few and further damaged many Mississippians that could have used those resources that are stuck in perpetual poverty.

It's safe to assume that the very same people that received this money - have turned around and funneled it back to Republicans in the Mississippi legislature. Will the recipients of those campaign donations be held accountable for accepting the kickbacks!? Probably not.

Shad White worships at the altar of Trump and he's trying to paint himself as some gallant moral individual. He's just removing the attention from those he's protecting in the long run to obtain higher office.

The conservative citizen's council is still alive and well in Mississippi, it just operates via the Mississippi Republican Party.



Anonymous said...

@9:14 Facebook can give away ALOT of personal details.. people can be so clueless about the amount of personal info they giveaway online.

We knew this was coming. Funny how the cover up lies started so long ago..it all makes sense now.

Anonymous said...

February 6, 2020 at 10:03 AM = YYaaaawwwwnnnnn, SSSSssnoooreeeee, ZZZZZZzzzzzzzzz

Anonymous said...

T H U G S

R E P U B T A R D S

Anonymous said...

Shad White is a degreed Accountant, has degrees from Ole Miss and Harvard and is a CFE - Certified Fraud Examiner.

Anonymous said...

These are all Federal funds which must be repaid by the State who allowed the mismanagement to happen. The Feds should step in soon and protect their money.

Anonymous said...

Just those MSGOP CON-servative values in action.

bunch of ignorant hate mongering crooks and thieves..

Anonymous said...

It’s odd how Supertalk or newms has made no mention of this

Anonymous said...

2-6—8;15 makes an interesting point. I find it very concerning that the Hinds DA is prosecuting the matter. If there is a chance that high political individuals could be indicted one could expect the best legal defense MS can muster plus political muscle. I don’t know if HDA is up to task. I don’t know if AG is up to task either. I would feel better if it were AG & that AG would hire a well seasoned prosecutor.

I applaud the state audit for this. I don’t know if I have EVER seen a state official try to clean up the state’s corruption. It is generally always the feds. I will withhold total accolades until success is achieved. There is just so very, very much corruption in this state from city, county, & state. Let’s wait & see if this is only individuals that have fallen out of favor with the powers at be. Let’s wait & see if this auditor is genuinely honest in his pursuit to clean up MS. He has a very, very looooong way to go. He’s not even on first base yet. But, thanks for this initiative.

Anonymous said...

8:36 -- Paying for services that couldn't have happened because the vendor was not physically present seems like it would fall on the low end of the complexity spectrum, no?

But even assuming the contrary, the complexity of the financials no bearing whatsoever on whether the Auditor himself was involved. The department employs career forensic accounting professionals for just that purpose.

As somebody who's litigated financial fraud cases, I'm just curious: What exactly do the Shad boosters think he did here? What would not have happened but for Shad?

Did he go out and beat the bushes for leads, or did the case come in on a tip like 99.9% of SA matters?

Did he personally interview witnesses, or was it investigators paid to do that job? Did he personally audit the pay orders, or was it accountants paid to do that job?

Aside from pointing out that Shad, like Ray Mabus and 20 lawyers in Jackson, went to Harvard, what is so impressive here?

What exactly happened here that wouldn't have happened under any marginally competent public official?

Anonymous said...

@10;03–I have never met Shad White and I’m very impressed with what he has done so far. It is still hard to believe that someone with his education would take the auditor job. Why don't you compare him to former auditors (like Bryant) and see what he has done in a short time.Folks like you are always critical of everyone and I doubt you find anything positive about any public servant.Last time we had a serious auditor was Ray Mabus. If you are too young to remember read “Operation Pretense”. I know you think he is a liberal snowflake .And before you start your hate I was a republican when you were probably still pooping in your pants.Guess that makes me a Boomer.Don't forget to also call me a RHINO since I don't hate.

Anonymous said...

@8:15
I agree! I had a personal dealing with the Public Integrity division under Hood, hand delivered them a case that involved a Sheriff and they wanted me to do more leg work (ie observe , give them more timelines) . What a joke hopefully Lynn will clean house and get rid of those pussies .

Anonymous said...

8:05 I likewise had personal dealings with the AG’s office under Hood. I delivered the evidence to the AG investigators as well as a SAG with knowledge of the facts. It was not a joke. It was really sad. They did nothing. No wonder corruption flourishes in MS.

Unknown said...

The suspects were each released on their own recognizance Wednesday night, officials with the Hinds County Sheriff's Office said.

It’s like a chappel skit

If a black dude has stolen millions he’d be in parchman waiting for his trial date next week.

Anonymous said...

8:47pm Fitch will do the same. Nothing.

Anonymous said...

5:24 Nice race card, however, as I recall, Chris Epps got the exact same kind of investigation and treatment. Perhaps you are confusing white collar crime with crimes that violently take things from others. Seems like a simple distinction to understand.

anonymous said...

Way to go Mississippi! Repubs have owned the Government now for 12+ years. They got NO ONE else to pin this on. I'm sure we will also learn of more mis-spending in the ongoing MDOC debacle as well.

Anonymous said...

wonder if they will plead the "fizzifth?"

Anonymous said...

@10;03 – I have never met Shad White and I’m very impressed with what he has done so far. It is still hard to believe that someone with his education would take the auditor's job. Why don't you compare him to former auditors (like Bryant) and see what he has done in a short time? Folks like you are always critical of everyone and I doubt you find anything positive about any public servant. Last time we had a serious auditor was Ray Mabus. If you are too young to remember to read “Operation Pretense”. I know you think he is a liberal snowflake. And before you start your hate I was a republican when you were probably still pooping in your pants. Guess that makes me a Boomer. Don't forget to also call me a RHINO since I don't hate.

I understand where you are coming from. I am a moderate that leans liberal. So I don't think you are a "RINO" - I personally hate that term, because of all it stands for and just a lazy way of "right-wing fascist" redefining the definition of conservatism. Personally, I like Delbert Hoseman and voted for him. I figured he could get Mississippi headed in the right direction in the Senate and so far he has not disappointed, only the bigots that support the MSGOP are not pleased with his "bi-partisan" acts to pass legislation.

Now with Shad. That's a different story. He is Tate Reeves 2.0 with his political rhetoric and that diminishes any work he does for the public trust. Yes, he has a major bust on his hands with the DHS investigation, but who is he trying to protect at the same time? I am very cynical about him. He has alterior motives in my opinion.

Anonymous said...

I'll say this and let it go....Until Mr White came along you really didn't see much in the news about the State Auditors office doing much of anything. They investigated lots of things but the letters of demand, indictments and arrests were few and far between. With White as auditor I have to say we are at least seeing his office doing something.

Anonymous said...

2/7/20 at 10:21, what are “alterior motives“?

Anonymous said...

@1:19pm Which begs the question WHERE in the hell was the reverend Stacey Pickering while all this (and much, much more....) was happening? And how much did Pickering know about and looked the other way? The feds need to start squeezing and flipping these MFers.

Anonymous said...

This is why we can't have nice things

Anonymous said...

I am appalled at how seldom I hear the word "honor" spoken. Do we even still teach honor? No matter how these people justified their lack of "honor" in all their dealings, they had none at the beginning of their trip into embezzlement. Honor is a decision and a behavior and it requires self-examination of your own motives. When you detect it missing in others, you leave them alone and find people of honor. It is a trait that requires all of your patience and attention. Hate is incomparable with honor. Falseness in any form is not honor. Tact is honor. Honor is to prized when one finds it as much as love is prized. Teach honor and teach steadfastness. Practice honor and steadfastness. It is a lifetime undertaking and a worthy one.

Anonymous said...

I was trying to get help for two girls who had been raped by their Mother's live-in at the time. It was a chamber of horrors trying to navigate DHS and its services; like dealing with the Keystone Kops. Our family has suffered many consequences since then because of their inaction and "closed cases". Never even interviewed the girls or the perpetrator.

Anonymous said...

@10:18 You are singing my song. Honor is what is lacking in so many areas of our nation. It needs to be instilled at home, spoken of in our Churches, and taught in our schools. Particularly in an agency that deals with children and families, honor and dedication are needed so badly.



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