Wednesday, April 22, 2020

DHS Paid Dibiase Company that Didn't Exist

The Mississippi Department of Human Services funded Brett Dibiase's drug treatment by giving $48,000 to a company that did not exist.


Then-MDHS Executive Director John Davis signed a contract with Recover2, LLC on December 12, 2018.  Brett Dibiase signed for Recover2.  The contract agreed to pay Recover2 up to $48,000  to train DHS staff and "partners" in assisting people suffering opioid addiction.  The contract had a term of six months.

There was just one problem.  Recover2 does not exist.

The Mississippi Secretary of State's website shows no records for a Recover2, LLC.  However, it does show records for Restore2, LLC.  Restore2 is owned by Brett Dibiase.  Dibiase created the company on August 21, 2018.

A Hinds County grand jury indicted Dibiase on February 4 for  conspiracy and making fraudulent statements.  State Auditor Shad White said:

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.
The indictment claims:

Latimer Smith, John Davis, the Executive Director of the Mississippi Department of Human Services,"and others known and unknown to the grand jury, falsified documents, invoices, books, reports, ledgers, and concealed and covered up by trick that Brett Dibiase, doing business as Restore2, LLC, failed to complete the requirements of his professional service agreement with the Mississippi Department of Human Services and that the invoices submitted to the Mississippi Department of Human Services reflecting the same were false, fraudulent and untrue all for the purpose of defrauding the Mississippi State Department of Human Services into paying Brett Dibiase, doing business as Restore2, LLC, forty-eight thousand dollars, $48,000.00 in payment from the public funds of the State of Mississippi, for work that Brett Dibiase, doing business as Restore2, LLC, failed to do, all occurring within the jurisdiction of this court and in violation of Section 97-7-10, Mississippi Code Annotated (1972, as amended).
 Apparently even the prosecutors, investigators, and all the king's men missed the fact that the contract was signed with a company that did not exist. 

A similar issue came up a few years ago in Hinds County.  The Board of Supervisors terminated a so-called maintenance contract with Airwave.  Airwave didn't appreciate losing millions of dollars in future revenue so it sued Hinds County.  Special Circuit Judge Henry Lackey ruled the creation of a company crucial to the enforcement of a contract.  He ruled:

 The Plaintiff, AIRWAVE CONSULTANT, LLC is a non-entity. It has never been created, never existed even though the Plaintiff, Stowers, who claims to be the owner of the company alleges in his Complaint that Airwave Consultant, LLC is a domestic telecommunication company residing at 848 Foley St. Jackson, Ms. This allegation is false, untrue.
Before Plaintiff could exist the Secretary of State's office must have breathed life into it by placing its application for creation on record in that office. This never happened. There can be no meeting of the minds nor negotiations nor agreement with a non-entity. It is impossible for a non­ entity to contract.
Recover2 never existed so DHS paid $48,000 to a company that did not exist or to a company that had no contract. 

Stay tuned. 













45 comments:

Anonymous said...

The levels of corruption and incompetence in this state boggles the mind. The celebration of ignorance will likely continue for generations. Thanks Phil and company.

Anonymous said...

Good Research!

Anonymous said...

let them all work the farm up parchman way...

Anonymous said...

This is a sad reflection of Phil Bryant's term as Governor. I know Phil and have always found him very personable. I choose to think this is a reflection of his ignorance and not inherent evil.

This sad mental limitation was also played out in other areas of his governance. Did he oppose Medicaid expansion because he was evil? No, I think it was because he was told it was not a good idea. Despite the fact that many other Republican governors expanded it and it has saved many rural hospitals. (And it would have cost us nothing).

Although he touted that he was for personal freedom, he never let go of government-run alcohol distribution and our freedom to buy wine in a grocery store or through a wine-of-the-month club was dashed.

Although he knew that our society is philosophically terribly split on abortion, he did not act as a statesman like President Reagan and recognize that women should have "choice" while he could express his personal repulsion at the process.

People like Phil are really nice guys. They should never be elected to our highest office.

Anonymous said...

it has saved many rural hospitals.

How many were saved and in what Republican governor led states?

(And it would have cost us nothing)

That is not correct.

Anonymous said...

Phil Bryant's legacy is absolute trash. Between this and the prison catastrophe alone. And I used to like him and voted for him. He's one of the worst governors ever

Anonymous said...

the next logical question is who the 48,000$ check was made out to and how was the check negotiated?
or did davis just give someone 48,000$ cash? can anybody out there answer that question?

Anonymous said...

Who authorized this payment?

Anonymous said...

I wonder how many poor Mississippi children could've been fed, clothed, and educated with the millions taken in this scandal? I wonder how many homeless veterans could be fed or treated for mental issues? How many elderly widows cared for? Wasn't this entire scam Christian faith based? How many local churches were involved?

Madison Rulz said...

At least his WWE wins were legit.

Anonymous said...

How many Jackson sewage discharges could have been repaired?

Anonymous said...

Did the contract go through the State Board, where was their oversight?

Anonymous said...

So many questions here - WHY - what is the reason for paying for his luxury drug treatment? Does he know the king's secrets? It seems so random and strange. I'm going to need a 12 episode podcast to sort all of these connections out when this is done.

Anonymous said...

from lamar adams and madison timber to professional wrestlers, mississippi is the film -flam capitol of the world. nigerian scams have nothing on the people in this state. and its almost always done ''in the name of the lord'' or ''for the children'' or ''to preserve family values'' .

Anonymous said...

@10:39 AM - Post of the day winner: "At least his WWE wins were legit."

As it has been said, "When its everyone's money, its no one's money."

Anonymous said...

How many Covid 19 Test could be administered today?

Anonymous said...

Phil Bryant and Supertalk validated this crime. Why couldn't they see it?

Anonymous said...

@10:17 Do you not realize it was $1 billion a year for the first five years with no cost sharing? Do you now think it would have helped all our hospitals, including the rural ones? Do you not think it would have decreased the horrifying number of Mississippians having to file bankruptcy? Do you not think?

Anonymous said...

The TANF grant needs to be reformed at the federal level. It was an ugly compromise to terminate the old open ended liability of the cash welfare system, AFDC. It’s time for a new program with better controls. I also think its a lesson for the future. You can’t just cap and block grant federal programs (looking at you Medicaid) and then wash your hands and walk away.

Anonymous said...

Interesting, the state paid money to a company that doesnt even exist. The same people who voted for the state leaders (White Republican leaders) that allowed this behavior to go on will get on this site and tear a whole into black democrat leaders in Jackson, for the exact same conduct.

Maybe Jackson represents Mississippi more than we like to acknowledge.

Anonymous said...

This story is one small step above Joe Exotic and Carol Baskin. All we are missing is animals. We have a governor who just got out of office before this story broke, his friends, wrasslers, federal grant money, drug rehab.

Anonymous said...

Bryant’s entire eight years as Governor was done in name only. He sat in the chair behind the desk and followed through with the orders given to him by his handlers. Politics and arrogance changed him from a decent, average guy into an arrogant, “know it all” asshole who was nothing more than a puppet. The people who made sure he got elected knew that he would do anything they told him to do. If he has any intelligence at all, he should be getting just a tad nervous right now as information from this deal begins to leak. You can bet your last dollar that the group who pulled this off will not hesitate to sing and sing loud; they will take him down right along with them.

Anonymous said...

Interesting point, for the most part, 12:20. At the state level, politicians are shielded from the voters behind a layer of agency bureaucracy. At the local level, they're closer to the surface. I don't think it's so much of a racial issue as it is an accountability issue.

Anonymous said...

@12:15 - and after the first 5 years? Who pays then, and where does the money come from?

Anonymous said...

Actually, Kingfish, you didn't finish your homework on this one. No money was actually paid to the non-existent company, Recover2, LLC. Money was paid to Restore2, LLC, the LLC created by Brett DiBiase. The actual contract to Restore2, LLC, is in Transparency Mississippi and the Secretary of State's business records confirm the creation of Restore2, LLC. The name Recover2, LLC, was apparently placed on the contract in error. That does not address the issue of what MDHS personnel knew about what this contract was really for or what DiBiase and Davis knew, but it was an existing company and a contract awarded to that existing company.

Kingfish said...

Actually I did, idiot. I have filed a public records request for payments.

The contract is with Recover2, not Restore2. Therefor any payments to Restore2 are either improper or illegal.

Anonymous said...

@12:15 - you have not answered the questions put forth by either 10:17 or 1:58, and please understand that there is a tremendous difference between "saving rural hospitals" and "helping rural hospitals". Until you can answer the questions put forth, you really have no business posting about something you know nothing about. Just because you are repeating what the lobbyists are saying does not mean you know what you are taking about.

Anonymous said...

The contract is in Transparency Mississippi with Restore2, LLC. Will be curious to see whether you get any actual checks payable to Recover2, LLC. Looks like somebody made a typo on the contract.

Anonymous said...

When does Nancy New go to court?

Anonymous said...

Does anyone else remember the Families First video featuring Nancy New and Steve Hutton (now charged with allegedly promoting prostitution) that aired during the 2019 State Fair, advertising the Families First booth at the fair? So you have DiBiase the alleged druggie and Hutton the alleged pimp tied to the News and their non-profits. The plot thickens...

Anonymous said...

Ted DiBiase Sr is The Million Dollar Man. I guess this scandal is junior’s attempt to be The Million Dollar Man 2.0.

Anonymous said...

I believe the names of the parties to a contract would be considered the most basic of material terms. Not getting that right is therefore not a "typo," or a scrivener's error, so I can't see how a contract could have been formed under this document. I don't know enough about public contracts law to say whether it could have been ratified in some fashion, but I'd hate to have my name associated with it or that $48K. Good catch KF.

Anonymous said...

Phil Bryant has not been seen in public or on SuperTalk radio since he cleaned out his desk on January 9.

Where'd he go?

Anonymous said...

10:38 - Bryant was on the Capitol grounds one day last week ringing the bell in connection with COVID-19. Other than that, I have not seen or heard from him since Reeves took office.

Anonymous said...

10:38-The bigger question is, Who cares? Philbilly was successful at keeping MS in last place. He talked a decent game, but let the record of his career as governor speak for itself: While governor, he “oversaw” two of the largest state agency criminal activities in the state of MS...MDOC & DHS. Thank you, Philbilly, and all your mindless followers.

Anonymous said...

The excerpt from the indictment is ridiculous. It is a 153-word sentence. It cannot be understood. Why do cops and/or prosecutors think it is ok to write this way?

Anonymous said...

The city of Jackson pays money to companies that don't exist EVERY DAY. I reached out to the SOS and ask if it were legal to give contracts to companies not registered, at least as a foreign entity, with the SOS *crickets**, move along, nothing to see here, can't be bothered with that!

Anonymous said...

8:30 - Can we assume you made those inquiries while Delbert was SOS? The same Delbert who is in a race with Fitch and Speaker Gunn to see who can garner the most media coverage NOW (not just limited to this blog and Supertalk)?

Anonymous said...

8:30, a non-existent corporate entity is not the same thing as a foreign corporation not registered to do business in Mississippi. Miss. Code § 79-4-15.02 sets forth the consequences of transacting business in the state without authority from the Secretary of State.

However, Section 79-4-15.02(e) also provides that "the failure of a foreign corporation to obtain a certificate of authority shall not impair the validity of any contract, deed, mortgage, security interest, lien or act of such foreign corporation . . . "

Anonymous said...

Try and do something for the state and provide documents to them and its a cluster. Example, do work for the bureau of buildings and grounds. Your insurance agent has to hand write on their form for insurance coverage. If a period or comma is out of place, they reject it. The insurance company uses their common name and not the full legal name on file with the Mississippi Insurance Dept(Liberty Mutual vs. Liberty Mutual Insurance Company of Ohio, LLC)..rejected. Agents name signed different than on his license...rejected. Maybe its gross oversite, or intentional. I can prove some parts of state govt make sure everything is 150% correct.

Anonymous said...

Was the DMR scandal on Phil's watch too? (asking for a friend!)


Anonymous said...

Keep digging. The truth is starting to come out. This, and the Clarion Ledger article last Friday about Phil’s involvement with Prevacus. The set up and conspiracy is falling apart and I hope those wrongfully accused drop the hammer on all involved, lobbyists and all.

Anonymous said...

Isn't that investment in Prevacus a perfect example of being a good steward of the taxpayer dollar? If that money had been paid to a regular citizen in need they might have bought food for their family. Once eaten the food is gone. It's just like the farmer eating his seed corn.

Instead, the money was invested in a company that could have made the taxpayers of Mississippi rich! Not to mention if you thought you might be in a car accident, or if you were a tree trimmer and thought you might fall out of the tree then just rub this cream on and save Obamacare or workman's comp all that money.


Anonymous said...

April 24 at 10:59 - It's another day now. Can you please interpret that post?

Anonymous said...

It's a snarky regurgitation of Republican traditional conservative values.

Object lessons and personal responsibility and preventing government waste and all that usual type of chit they say when running for orfice!

Once they take office...THEN IT'S FRIENDS AND FAMILY TIME. TAKE IT TO THE BANK!

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