Thursday, March 18, 2021

Feds: Nancy & Zach New Stole Nearly $5 Million in MAEP Funds

MAEP funds used to buy home.

A federal grand jury indicted Nancy and Zach New on 17 counts of conspiracy, wire fraud, aggravated identity theft, and monetary transactions with  proceeds of illegal activity. The indictment is posted below. These indictments are not a repetition of the DHS scandal but accuse the News of bilking the Mississippi Department of Education for MAEP funds for New Summit schools.

 The indictment charges the News submitted phony claims to MDE for reimbursement of MAEP funds.  The defendants allegedly filed claims for teachers who no longer worked at New Summit, employees who were not teachers, a person who was never a school employee, and students who longer attended or never attended the school. The indictment states the fraud occurred from 2017 to 2020 and involved $4.7 million.The indictment provides a list of the transactions (p.3). 

The alleged fraud covered identity theft as well.  The News allegedly used the names and Social Security numbers without permission to submit phony claims.  A series of withdrawals occurred in the spring and summer of 2019.  Ms. New used the cash to purchase a home on 1800 Sheffield Drive in Jackson in June 2019. 

Hinds County property records state Ms. New still owns the home. The home is assessed at nearly $200,000 but it undoubtedly has a much higher market value. The indictment states the feds will seek the forfeiture of assets gained through the use of fraudulent means. 

The News face up to 20 years in prison for the wire fraud charges. The aggravated identity theft  counts have a prison sentence of 2 years that must run consecutive to any other prison sentence.  The money laundering counts have a maximum sentence of ten years in prison.  All counts have a maximum fine of $250,000. 

The News will be arraigned at 1 PM. 

A Hinds County grand jury indicted the News last year for embezzling millions of dollars in DHS and TANF funds.  Those cases are still pending in Hinds County Circuit Court.

 


57 comments:

Anonymous said...

They were going around saying that all of this was false. The feds rarely indict without absolute proof.

Anonymous said...

Oh what a deadly web we weave-

Anonymous said...

@11:37 keyword “rarely”

Anonymous said...

@11:49am - You must be “New” here...

Hehehehehe

Anonymous said...

Well, well, well.

Anonymous said...

Hopefully the same AUSA that scared to indict Seawright and Alexander won't be handling this case.

Anonymous said...

Phil told it all I see.

Anonymous said...

Pages 10-11 - doesn't name a the third person on the account at Trustmark.

This the canary?

They Seem Nice said...

They are obviously very qualified to run for any public office on a Dem ticket.

Anonymous said...

Are there no safeguards with the state of Mississippi? It sounds like if you send them a preposterous bill, they just pay it. There is a lot we don’t and probably will never know. When it comes time to sentence, these 2 will be singing like birds.

Anonymous said...

Shit got real!

I tell you what....you can’t trust white people with all this government money!

Every time white people get access to federal money they steal it!

Now these white people ruined Jackson! Ruined Sheffield. Ruined it all!

I hope of the feds see fit to improve Jackson’s water system they make sure whites don’t get the money!

Anonymous said...

Once again, millions hidden, washed, and rinsed through the MDE (or MSCCB or IHL)....those three organizations are the most corrupt in the state. They all need federal forensic audits before anymore fed dollars disappear into the Mississippi hole in the ground.

Anonymous said...

Where are all the race comments about Jackson?

Anonymous said...

1:47, this all transpired under an entirely Republican regime headed by Governor Gomer Bryant. Shazaam!

Anonymous said...

Start Spreading the News.

Anonymous said...

Is this what Ronnie Musgrove was screaming about in the lawsuit to fund MAEP?

Gumshoe Reporter said...

I have a burning question for these two:
What did New know and when did New know it?

Anonymous said...

@1:47. Nice try. These are solid, Jesus-loving Republicans. She always bragged about having Phil on speed dial. You may want to look into the corruption in your own party before you start throwing stones.

Anonymous said...

What is the MSCCB

Anonymous said...

While most of you are squabbling over who is at fault you are getting robbed blind. You idiots can't stop for a second and realize that neither party, republican nor democrat, gives two shits about you. Both are playing you like a fiddle.

No back to the normal programming.

PJM said...

I'm just glad I pulled my kiddo out of NSS, tuition kept going up and results were lacking. I feel for parents of Autistic kids because NSS seemed like the best option for them. Yes, some got excellent help but it always seemed like they needed more money for this and that and to learn all this makes me sick. FYI my son is in a new school and is doing very well for half the f'n cost.

Anonymous said...

David Lane should have been in line ahead of them. How did they get to jump ahead of the Lanes?

Anonymous said...

2:49a, wins the internet for today.

Anonymous said...

3:35
Exactly! How is he still out and about!

Anonymous said...

Somebody in state government okayed these payments. WHO WAS IT?

Anonymous said...

Second Post @2:49 PM - Preach, brother, preach!

Anonymous said...

@2:54pm MSCCB = MS Community College Board

@3:12pm You couldn't be more on point. Not sure why this state is so much against Democrats.....with Republicans at the wheel, it couldn't be any worse. Whitey is robbing Mississippians blind, and while they waste the rest of it. But hey! We're #50! We're #50! There's that.

Anonymous said...

Amen 3:12...these corrupt politicians thrive while we peasants fight over skin color and political party.

I vaguely recall a time when a crime was bad no matter who committed it.

But by all means, lets squabble over the demographics of the assholes that are robbing us all.

I don't know what prize you win if you hurl the best insult at the "other" party or race, but it must be impressive.

Anonymous said...

Can someone provide a list of Phil's appointees/close associates that have been indicted? The list must be quite long.

Anonymous said...

People of all colors and creeds have made choices to cheat and steal since the beginning of time. Skin color does not determine if you are going to steal. It is a choice. And those who choose, whether white, black, male, female, Dem, Rep, etc. should pay the price. A thug is a thug. But posters on this site (most or whom are blinded by their own prejudiced ignorance) want to try to make a point about the opposite race or party every time there is an arrest. Common stupidity.

Anonymous said...

What is the latest on the Lanes?

Anonymous said...

What the hell is a creed anyway?

Anonymous said...

Deppity Pheel gets his crooks!

I bet Tater will have some choice words about having to lock up friends and family!

Anonymous said...

Like Gramps always said (well when he was in the home brew shine anyway!)


Try'n to clean up corruption in Mississippi is like using a barrel hoop to wipe yer butt. The job jest goes on and on and it don't seem to get you there very fast neither!

Anonymous said...

Why in hell are cases from over a year ago still 'pending'? Regardless of bond, these people have zero incentive to hang around. Say it with me....ZERO.

Anonymous said...

At least we are in the top 50. No matter which party is in charge, we stay in the 49-50 rank in every category. A football coach would be fired after 3 years max. But a political party? Well, there's only 2.

Point being, we have not moved in national rankings since integration. Apparently our state GOP leadership is ok with being 50th and so are the voters.

Let the shell games continue.

Anonymous said...

Anyone have any news on the DMR Walkers?

Debts paid? Judge still upset? Any new arrests?

People still able to take fancy vacations?

These folks: https://www.wlox.com/2020/10/22/trinity-walker-buys-billboards-thanking-husband-repaying-stolen-taxpayer-money/

Kingfish said...

The DA flipped the bookkeeper. Judge Wooten threw out the plea deal. So that screwed things up.

Anonymous said...

Lots of talk here about political parties and who's at fault - but seem to miss one important part (besides the fact that the one's "at fault" are the News. They were the crooks in the deal and evidently scammed the government.

But point being - with the DHS scandal, it is true that the head of the agency, appointed by Phil, was part of the corruption. But this case, as KF pointed out, is not the DHS scandal that the News were part of. This case was at the Department of Education - where the Governor, no matter who is Governor, has little control over its operation. The State Superintendent is hired by a board, and the Governor doesn't control who is on the board at any point in his/her term. And whether a scam such as this one should be placed entirelyn on the State Superintendent is still somewhat questionable if there is no indication that she was part of the process. This looks to be the News filing a bunch of bogus invoices under standard operating programs - that were probably reviewed and approved by someone thirteen levels below the Superintendent.

Not trying to defend anyone here -- but don't think you can place this theft at the foot of politicians. (But hey, facts be damned - its a whole lot more fun to type nasty crap about elected officials whether its due or not.)

Anderson Studios said...

Shouldn't this 4 million repayment help with the approved teach pay raise?

Anonymous said...

7:55pm Thank you for being the most reasonable person here. The News are (apparently) total crooks. Why is everybody looking for someone else to blame? I read two names in the indictment. I'm going to assume the feds took a look at everybody else before springing this one.

Anonymous said...

Point blank, these were Phil Bryant’s hand picked friends. If the News are smart they will flip on him and Deb.

Anonymous said...

You can bet Homer's Over-Hauls that Feel is feeling a twitch down around the hind-part. I hope he gets to room with Epps in the Mississippi suite.

Anonymous said...

Has Farve payed back the other half million or is he holding on to it to put on his friends accounts once they start doing their time.
As for Phil Bryant, my Daddy always said birds of a feather stick together. He was too close to these crooks and probably reaped some of gains, I met him once and he just isn’t that dumb.

Anonymous said...

Proverbs 18:17

Anonymous said...

All the "boards" in Mississippi were/are created to obfuscate any accountability for the executive branch. They claim it's for oversight, but it's really to deflect blame and obscure anyone from knowing who is doing what. "No one" ends up being responsible.....but the citizens pay the through the nose to live in the poorest state in the Union. It's actually not, but the money isn't being utilized properly so its service "outcomes" are zilch.

It's more and more visible everyday.

Dept. of Corrections = Disaster (and billions stolen)
Dept. of Education = Teacher shortage (and getting worse)
Dept. of Mental Health = About to be under Federal oversight
Dept. of Transportation = Billions needed for roads and bridges
Jackson = Capitol of Mississippi(on the verge of bankruptcy and major civil unrest)

The last large pot of money (Division of Medicaid) will also have an "oversight" commission in order to raid its coffers. That's how desperate and brazen the corrupt have become. Mississippians - sadly - have the government they deserve, and of their own making.

Anonymous said...

Don't forget about the New Summit Academy in Costa Rica. The update to their website is a good attempt to disconnect them but a simple google search shows they were on the list of schools for "New Learning Resources School District" in 2017.

Anonymous said...

Republicans stealing but as usual excuses being made for them. These are PhilBilly’s appointees.

Bill Dees said...

@Anderson Studios: That $4 million would give each public school teacher about $106, for one year.

Anonymous said...

It’s not fair that the New’s can’t give their side of the story because of a gag order, yet that doesn’t seem to apply to Shad White and his benefactor! It irritates the hell out of me that higher ups will never be touched!

Anonymous said...

@1:51pm The judges in Mississippi are as corrupt as the thieves....they cover for them all the time.

Anonymous said...

The comment at March 19 at 2:38 is cynical BS. The judges before whom I regularly practice are people of integrity. Some are more diligent/hard-working than others, but they really don't seem to play favorites. Caveat: I don't regularly practice in Jackson/Hinds County.

Anonymous said...

11:59am You are the exception, and fortunate. Faaaaar too many judges in MS are good ole' boys/girls plugged in to the matrix of corrupt power that keeps MS #50. Perhaps you don't see, because you do not wish to see.

Anonymous said...

These schools are needed. I pray they can survive. Has there been any information given they indicated them closing? These poor children, their parents, and teachers must be so worried.

Anonymous said...

I heard a podcast from Mississippi Today reporter Anna Wolfe. It seems to be fairly impartial and states a lot of facts from research. The podcast all but names King Phil as the guiltiest of the guilty. Still can’t figure why Shad refuses to investigate his mentor. Hmmmmm

Anonymous said...

@10:27......you really can’t figure out why Shad won’t go after Phil? C’mon man!!

Anna Wolfe is Shad’s patsy. She wants to tell the truth (I think) but it seems she’s been spoon fed a narrative that is missing an entirely other perspective. She keeps regurgitating “facts” and keeping Shad’s story going why he’s under the gag order. I too believe Phil is behind this all, but he’ll never get touched. Word out of the DA’s office is Shad state case is dead in the water based on the actual facts and evidence. He’s now been bailed out....happens all the time. The powers that be want to bury folks without the other side of this story coming out.

Anonymous said...

New Summit School is a Godsend for so many children and their families. There isn't another school like it in Mississippi. We sincerely hope it will remain open.


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.