Tuesday, October 12, 2021

State Auditor Demands Over $77 Million Repayment

Favre Demand: $828,000

 State Auditor Shad White issued the following statement. 

 State Auditor Shad White’s office served demands for more than $77 million of misspent TANF (Temporary Assistance for Needy Families) money today. The individuals who signed off on the illegal spending, like former Department of Human Services (DHS) Executive Director John Davis, along with vendors who were paid those funds yet failed to do all the work required under their contracts, received these demands.

 

“Two years ago my office audited DHS,” said White. “After two years of work, we found tens of millions of dollars in misspending. Those findings have now been confirmed, this month, by an independent forensic audit commissioned by DHS. It’s time for the taxpayers to attempt to recover what we lost.”

 

DHS’s forensic audit, which was conducted by an independent, outside CPA firm from Maryland, released its findings on October 1. “After our first DHS audit, I told the public we would have to consult with our federal partners at the Department of Health and Human Services before coming to final conclusions about who owed what money back,” said White. “Those partners were waiting for this forensic audit. Now that it’s complete, we are in a position to demand the illegally spent welfare funds be returned to the state.”

 

The Auditor’s office issued a demand to Davis for $96.313 million – which includes interest – for his role authorizing over $77 million in illegal TANF spending.

 

Two nonprofits, the Mississippi Community Education Center (MCEC) and the Family Resource Center (FRC), either misspent or improperly dispersed portions of that $77 million, meaning the money was ultimately misspent by a vendor to the nonprofit. As a result, the board and leadership of MCEC were served with a demand for $68.159 million. FRC’s board and leadership were served with a demand for $15.549 million.

 

Auditors issued additional demands to vendors who received part of the $77 million in welfare spending but did not completely fulfill the terms of their contracts:

 

•           Austin Smith: $378,791

•           Brett Dibiase: $225,950

•           Favre Enterprises, along with Brett Favre and Robert Culumber: $828,000

•           Heart of David Ministries, controlled by Ted Dibiase, Sr.: $722,299

•           JTS Enterprises and Transformational Ventures, controlled by Brian Jeff Smith: $674,715

•           The Marcus Dupree Foundation, controlled by Marcus Dupree: $789,534

•           Nancy New: $2,589 (for payments received from FRC)

•           NCC Ventures, controlled by Nicholas Coughlin: $237,915

•           Ted Dibiase, Jr.: $3.903 million

•           Warren Washington Issaquena Sharkey Community Action Agency, along with agency leaders Jan Vaughn, Jannis Williams, Janice Jelks, and Delinda Robinson: $75,261

•           Zach New: $74,118 (for payments received from FRC)

 

Former DHS Deputy Director Jacob Black was also served with a demand for $1,824 for unallowable first-class air travel.

 

These board members, nonprofit executives, and individuals are liable jointly and severally for the demands. This means the individuals share responsibility for repaying portions of the total amount with John Davis.

 

If the demanded amounts are not repaid within 30 days, the Attorney General’s Office is responsible for enforcing the demands in court. These demands are civil in nature, not criminal. A civil demand does not imply criminal liability.

 

“I’m grateful that DHS’s Director Bob Anderson has worked with the Attorney General’s Office to hire an attorney to recover these funds. These demands serve as the next step in the recovery process. If there is more money that the Attorney General believes has been misspent than what we have identified in these demands, we stand ready to help them investigate if needed,” said White. “More demands are possible.”

 

At this time, the Mississippi Office of the State Auditor will not comment on the current criminal investigation or proceedings.

 


59 comments:

Anonymous said...

I bet that Jacob Black pays that $1800+ so fast it will make your head spin.

Anonymous said...

Hey hey hey, good bye. This reminds me; Is there a list of names of those who lost money while investing in Bill Machenry and Lamar Adams’ Timber deals? Not people who actually profited from their investment, just the ones who lost. You know, the reason this went to the wayside is a ton of folks actually made money before the account went dry. I would venture to guess some of this DHS money was invested with Madison Timber.

Anonymous said...

Welp, there went the "he won't touch Favre" mantra.

Anonymous said...

Great news !

I hope he goes after the Department of Employment Security next.

Anonymous said...

3.9 million to Ted Jr. ? A single person received 3.9 million. To do what ?

Anonymous said...

Love it when a plan comes together. Misspent $77,000,000. How in the name of Jesus and all that's Holy do you misspend that amount?

Sarcasm Sam said...

$77,000,000 is just a "rounding error."

Anonymous said...

Anyone got $5million for a family emergency they can spare? (Asking for a friend)

Anonymous said...

LMFTFY!: Love it when a plan comes together. Spent $77,000,000 of Uncle Sugar's money in the name of Jesus and all that's Holy in Mississippi and you don't call it misspend when you do it in the name of Jesus!

Pay Up Brett you Slacker said...

How many more Covid vaccine PSAs will Favre have to do to pay this off?

Anonymous said...

Many of you sit on the boards of non-profits. At your next meeting, ask to see the directors & officers insurance policy. That D&O policy is important.

Anonymous said...

You boys keep worrying about that lil chump change in Canton

Anonymous said...

The feds are going to demand repayment of a least that much and no you can’t use Covid recovery funds.

Anonymous said...

Did he forget to include Phil Bryant? Or did he forget to investigate the former Governor?

Anonymous said...

Go Shad! Great work. Kick ass and take names. Down with the good ol boys network

Anonymous said...

If I ever go missing, I hope Shad investigates my disappearance.

Anonymous said...

So every single government employee who abuses Fuelman or clerk who takes $1200 bucks gets a civil demand and an indictment. Steal enough, it's only a civil demand. And yes I understand the Feds have indicted some of these. Of course, if you are hoping Fitch and Co. could actually prosecute anyone, you will be very disappointed.

Anonymous said...

Nick coughlin

Hmmmm….works for Fitch.
Very very close to Fitch….
Like uncomfortably close

Fitch had to hire a lawyer to sue Nick…..

Wonder what revealing text messages exist by and between those two?

Anonymous said...

Y’all this is going to get really interesting.

AG hires some firm to sue Favre et al…..

Wait for what’s called “third party practice.”

Everyone else who got some free money from New and company will be asked to join as a party. And then the insurance claims for defense? Indemnity? Cross claims next.

Don’t just get some popcorn….get a new recliner too!

This is gonna provide entertainment for months / years to come!

And then? Judgment debtor examinations…..

Wow

Anonymous said...

Ya'll got anymore of that Copper Fit money??

Anonymous said...

What about the professor at Ole Miss that the auditor went after? Haven’t heard anything after the professor lawyered up & told the auditor he would see him in court!!

Anonymous said...

5:42 - you must be worried about that Canton Chump Change.

You the one that brought it up.

Anonymous said...

Jacob Black probably did not book his own plane ticket. I bet Davis's secretary booked it.

Madison county said...

I will bet you that every past member of the Canton municipal union would gladly pay a couple of Thousand dollars get their asses out of that mess. By the way, what about that non existent “tornado insurance contract” that was “self insured” by one of the CMU board of directors. He was willing to assume the liability, which I am pretty sure he could not afford. It takes more than an arrogant big mouth to pay claims. Somebody please notify the people that will look into this. My money was spent on this stuff.

Anonymous said...

Apparently over $1 million to relatives of John Davis.

Pretty sure JTS Enterprises is his brother-in-law.

Pretty sure Austin Smith is the son of JTS Enterprises.

Anonymous said...

Fitch fired people for having fish tanks and children’s art in their office; yet, this clown still has a job?????

Anonymous said...

The list of things Lynn will apparently tolerate:
Executive level staff sexually harassing subordinates;
Embezzlement;
General incompetence.

Anonymous said...

And Phil?

Anonymous said...

Can’t wait to see the other demand letters…will there be any for Bryant, Songy or Smell?

Anonymous said...

What about LaCoste… $1.2M????

Anonymous said...

So does Nick Coughlin retain his job working for Fitch? Exactly how does that play out? Will Fitch go after anyone with criminal charges or does she take a chance Mississippi voters forget about this before the next election? I’m not sure how these people sleep at night. Rotten to the core.

Anonymous said...

Not too long ago a billion dollars went missing from the Texas Dept. of Transportation. That’s $1,000 million, and they chalked it up to an “accounting error.” This is Bush League compared to public corruption in Texas, but at least our crooks are facing criminal charges.

Anonymous said...

Looks like Sheriff Shad has captured the Philbilly Gang.

he DID say more to come said...

Someone mentioned Dept of Employment Security. First time I've heard them mentioned. What did they receive fraudulently or misspend?

Saw no mention of Univ of Southern Miss for that volley-ball court building. That was procured as a favor to Bryant and Favre. Can't touch that one without implicating Bryant and wife.

Anonymous said...

$77,000,000 stolen and 30 posts?

The silence is deafening

Had a Democrat spent $77.00 and wrongfully charged the state there would be 200 posts calling for reform and more.

R Phil Bryant orders his friend to waste/steal $77,000,000 and this place acts like nothing happened.

Pathetic

Anonymous said...

The Feds net is much larger, Phil & Deb still have a lot of restless nights ahead.

Anonymous said...

7:14 I am sure you are also posting condemning your current commander in chief and all the good works Brandon is doing? There will be enough posts, hang on.

Anonymous said...

I'm a conservative and I hope they all suffer endlessly for this.

So tired of these public servants becoming millionaires while the state falls further into disrepair.

We really have just been forced to accept that our vote should go to the shady politician who is slightly less of a criminal. Democrat and Republican alike.

Anonymous said...

It looks like Favre will have to do some TV commercials to pay this off. He could network with Joe Montana who is doing commercials to pay for his latest home on Malibu Beach, bought for a cool $7.4 million.

Anonymous said...

I thought Favre stated early in the process that he would pay approx. $400,000.00 to settle his involvement. Had he done that, with the help of a “competent” attorney, he would probably be out of this mess. Please comment.

Anonymous said...

Yea, can't understand why Favre didn't just cough the money up. Surely $400,000 - $600,000 is not much of a stretch for him. He'll lose more than that in endorsement money not to mention salvaging his reputation. Wierd

Anonymous said...

It never stops

Anonymous said...

$400,000 from Favre would be one of those "rock star" blessings, because he was famous (now infamous) and a favorite son. Fuck the NFL.

Anonymous said...

What about LaCoste… $1.2M????

This is a great question. Don't forget (allegedly) some that money went for the legislature to lose weight. Paul did the bootcamps.

I don't suspect you'll see that $1.2M head back to Mississippi's coffers anytime soon.

Anonymous said...

Brett Farve is an arrogant POS and a horrible ambassador for the State of Mississippi. He could do so much, yet he doesn't do anything but "unknowingly" let his agent book him for speaking engagements he never attended. Yeah right, he knows what happened and is using his agent as a shield. F him, and let's go Brandon.

Anonymous said...

Love the audit results but naturally have to ask the question, hiw many terms do you serve as State Auditor before you make the leap to Lt. Governor? Or do we stop at SOS along the way?

Anonymous said...

What is the obsession with one poster over Brett Favre? Seems to me he could go give a couple of talks and not be liable for much of anything? Much different than the 4x the wrestle family got.

Jon Gruden said...

Be sure to search all emails over the last 15 years, you never know what you will find. And please include Mr. and Mrs. Bryant.

Anonymous said...

Being such a local "hero" and "rock star," Favre probably figured that he was going to get a blessing. Now if he doesn't pay up in 30-days per the demand letter, will the AG do anything about it? It is up to the AG to enforce, right?

Anonymous said...

Next I hope they audit MEMA and MBN under the Bryant administration too...

Anonymous said...

"Someone mentioned Dept of Employment Security. First time I've heard them mentioned. What did they receive fraudulently or misspend?"

Well 6:16 AM, have you ever heard of Unemployment Insurance Fraud ?

Such has always been rampant, but the last two years have been exponential.

I doubt it was intentional, but MDES has been a screwed-up operation ever since Haley Barbour took over that agency and placed in the
"Office of the Guv".

Anonymous said...

What about the Department of Corrections…..thought feds were looking into the Bryant years. There’s plenty to see

Anonymous said...

Stand your ground Farve!

Anonymous said...

@5:54 PM - My question re MDES is not an effort to defend the agency. In fact I use to work there. But (and you might not know this) this thread is about the State Auditor's results in regard to TANF fraud. That has nothing to do with the international activity involved covering the 50 state Unemployment Insurance programs during and following the release of uncounted COVID FED UI money and the billions the Dems are still releasing, half of which will be eaten by fraud.

Not one state MDES system has or had an IT department capable of stopping the fraud perpetrated on those systems and the feds dumped those billions on states with NO program of oversight or control or way to cut off the flow. Most of the fraud took place internationally. As with fake work documents, fraud washed over these 50 systems like shit through a goose - Nothing the states, individually, could do to control the fraud. And the fraud was certainly NOT perpetrated at the local AGENCY? STATE levels. You might not absorb any of that, but, I say it to say this: Your mention of MDES is unconnected bull-shit.

Anonymous said...

The clown who keeps barking about '$77,000', needs to understand the headline reads MILLION, not THOUSAND.

Anonymous said...

This reminds me of a radio program I picked up driving in the delta with Marcus Dupree talking about some ephemeral scheme to raise marijuana in the delta under the guise of calling it hemp forestry products.

Anonymous said...

Attn 10:45 a.m. the $77,000.00 clown is a product of the Jackson public school system.

Anonymous said...

10:45 am

Who said $77,000?

Not a post I see says $77,000.

?

You may need to go back to the eye doctor or maybe you are just ignorant.

Asking for a friend Will Deppity Feel be included in the party said...

More to come for the wankers that allegedly looted TANF funds!

https://www.wlox.com/2021/10/20/mdhs-says-agency-will-proceed-with-civil-complaints-recoup-misspent-tanf-funds/

"There are familiar names that will receive civil complaints from the Mississippi Department of Human Services in the fraud scandal that has resulted in six people facing criminal charges.
Advertisement

The Mississippi Community Education Center and Family Resource Center, both run by Nancy New and her son Zach New, are among those names. Also included Brett Favre and the University of Southern Mississippi Athletic Foundation.

Bob Anderson, executive director of the Mississippi Department of Human Services, tells WLBT who else is on the list.

“There’s the five million dollar volleyball facility at the University of Southern Mississippi Athletic Foundation. That entity will be named in our civil complaint. The indictments in the criminal cases make reference to TANF funds that were used to buy stock in a couple of companies called Prevacus and PreSolMD,” he said.

Some of the names in the complaint are not as familiar.
Advertisement

“Jacob VanLandingham was involved in the sale of those Prevacus and PreSolMd stocks,”"


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