Davis & McGrew Released without Court's Approval, Bench Warrant's Issued
Alleged embezzlement is $4.15 million
Shockwaves tore through Mississippi yesterday after the State Auditor arrested the former Director of Human Services and several others for embezzlement, fraud, and conspiracy. The defendants include MCEC Executive Director Nancy New and her son Zachary. Brett Dibiase, the son of the Million Dollar Man, made the list of the accused as well. State Auditor Shad White accused New and others of embezzling $2 million in government funds for personal use.
John Davis
The indictment charges the former DHS Director of five counts of conspiracy, embezzlement, fraudulent statements, and fraud committed in public office. Most of the indictment focuses on the enrollment of Brett Dibiase at a drug rehab facility, Rise in Malibu, in California between November 2018 and July 2019. The indictment alleges $48,000 of state funds was paid to Rise for Dibiase through a company, Restore2, LLC. Dibiase owns Restore2. Davis stands accused of working with co-defendant Nancy New to pay for the rehab through Restore2.
Unfortunately for John Davis, he was released without approval from Hinds County Circuit Judge Adrienne Whooten. She issued a bench warrant for his arrest this morning.
Nancy New
There are two separate indictments against New. She founded the well-regarded New Summit School in Jackson and is the Executive Director of Mississippi Community Education Center. The indictment follows the story alleged in the Davis indictment. The pair conspired to pay for Brett Dibiase's drug treatment with state funds.
However, the indictment further alleges New transferred state funds from the MCEC bank account to one held by New Learning, Inc. New and her son Zach own New Learning. The indictment states:
To-wit: Nancy Whitten New, while acting in concert and/or aiding, and assisting Zachary Whitten New, while serving as the Executive Director of the Mississippi Community Education Center, a private non-profit entity responsible for distributing public grant funds received from the State of Mississippi, transferred funds, in excess of two million dollars, $2,000,000.00, the property of the Mississippi Community Education Center, from a bank account owned by the Mississippi Community Education Center, through a series of multiple transaction, into bank accounts owned by New Learning, Inc, a private for profit company owned by Nancy Whitten New and Zachery Whitten New and thus converting such monies to her own use..She also stands accused of filing false reports. The case is assigned to Hinds County Circuit Judge Faye Peterson.
A second indictment is lodged against New in Hinds County as well. The second indictment is assigned to Circuit Judge Tomie Green and alleges she embezzled $2.15 million. It repeats the same charges but includes a count for mail fraud.
The State Auditor obtained an injunction freezing an account New holds at Regions Bank.
Ann McGrew
The grand jury whacked Ann McGrew for three counts of conspiracy and fraudulent statements. The indictment accuses her of helping the defendants embezzle $2 million in state funds by producing fraudulent documents. She is the accountant at MCEC.
Judge Whooten issued a bench warrant for arrest after she was released from custody without the court's approval.
Brett Dibiase
It is alleged that Brett Dibiase conspired with Davis and Latimer Smith, a DHS employee, to get his drug treatment paid for with DHS funds as well as submitting phony invoices. The case is assigned to Judge Tomie Green.
Zach New
Zach New is the Assistant Executive Director of MCEC and Nancy New's son. The indictment alleges he transferred state funds of $2.15 million to personal bank accounts. The News allegedly invested the funds in Florida bio-medical companies:
by transferring funds owned by the Mississippi Community Education Center, from their bank account, Regions Bank Account Number xxxxxx, through a series of multiple transaction, into bank accounts owned by Prevacus, Suntrust Bank Account Number xxxxxx, and PresolMD, Suntrust Bank Account Number xxxxx, Florida based biomedical companies, which transferred funds were used to purchase investment interests in Prevacous and PresolMD which investment interests were owned by Nancy Whitten New and Zachery Whitten New, by means of a false or fraudulent pretenses, represented or promised...The case is assigned to Judge Tomie Green.
34 comments:
Judicial incompetence-
The crazy thing is that it is unclear what Davis got out of this deal.
Proud of Shad and Jody Ownens. Great to finally have a DA that other officials can trust and work with.
Looks like at least $4.15 million, actually, if you review the News' documentation.
KF, since I ain’t no lawyer, why is a county DA prosecuting instead of the AG’s office?
State Auditor can use AG or DA for prosecuting. Thanks to Robert trying to throw SA employees in jail, there has been little cooperation over the last few years. New cast, new policy.
I looked at the MCSC 990 and it appears very strange. Their revenue skyrocketed 400% to over $13 million in 2017 (almost all from government grants) and their profit increased from $54,000 to $6.3 million. Supposedly they do training, but such an outrageous amount for doing so little would seem to indicate some kind of special treatment in the vendor selection. I don't think it is coincidental that was also the year after Mr. Davis got appointed as MDHS director.
http://990.erieri.com/EINS/582046994/582046994_2016_0f6cba32.PDF
I've got a feeling Mr. Davis is going to be more involved than the initial indictment indicates.
AG?
One of the newbs just missed a trial in Starkpatch when everyone else, including the victims showed up for trial. Apparently no one bothered to talk to the prosecutors they let go about pending cases.
The defendants are not members of a protected class, so no blessings.
And the Lane's are still sipping vodka around the pool at River Hills.....
Wow...so now Republicans are stealing money hand over fist from Republicans....who will they scape goat now?
They need someone fast!
What could possibly distract from all the Republican theft and chicanery?
Stay tuned!
KF:
Details about that Starkville case, please.
Is no one looking into Families First?
KF: That's the AG's 6th no-show for a trial.
@1:40- Please provide proof that all MS taxpayers are Republicans... because, that’s who has been stolen from here... the TAXPAYERS.
Now, if your intrigued and impressed that a Republican auditor confronts and addresses fraud regardless of affiliation, then state that, but don’t be lazy and ridiculous with your comments. BOTH parties are guilty of protecting their own. Are you even from MS? Surely, you’ve heard of Jackson!
I really hate to hear the AG is bungling other cases. I hope they get their shit together.
So, why Nancy & Zach New? Why were THEY the recipients of so much government money? Someone needs to answer that! Of course, the Families First grant and then an individual appropriation for New Summit in the annual appropriations bill. Why was New Summit Tate's go-to location for his pro-public ed commercial? Why is she allowed to weigh in on education policy regarding school choice? These are questions for which I want answers!
Lord help them if they're white. Tomie Green will throw the book at them.
If you have an idea where to look on state websites, in 2017 there were $13m+ (closer to 17 if I remember correctly) in payments from DHS to Families First for Mississippi. These payments came with no formal contracts and there was never an RFP for other entities to compete for the funds to provide services. There’s a CFR which outlines how federal funds are to be handled with contracts. So, basically, MDHS violates federal code by providing funds without receiving bids and without a formal contract.
Jim Hood didn't do S**t for Mississippi!
Maybe the state can use the bio company investment to fix PERS.
The efforts to tie Reeves to this are comical.
So....Kingfish will start six different threads on this same subject and ten days from will jumble them all into a single thread.
If you don't care for the approach 3:25 PM nothing is stopping you from leaving.
Green tends to be lenient on bond and sentences, but I've not seen her be aggressive toward whites. I've seen her generally quite fair.
I have also heard of Latimer Smith. Don’t know much-other than being young and from a good family. From what it sounds like he was just a DHS employee who was not aware of the fraudulent behavior happening around him. Sounds like blasting an innocent name to me. The truth always tends to come out weeks after an article is released.
To correct an above post, I don't think you have to competitively bid out subgrants like a normal government contract. DHS doesn't issue RFPs for TANF subgrants. The Feds have requirements for how to subgrant and such, but they are easily duped and the review is mostly perfunctory.
I bet these guys never in their life imagined some squirrely little Ivy League educated guy was going to become state auditor and probe so deeply. Congratulations to him!
Lastly, the TANF grant is an absurdity and needs to be rethought at the federal level. Just shoveling money into state agencies like this with some nebulous mission to "help families" is asking for corruption. It was a necessary compromise to dismantle the old cash welfare model, but it has outlived its usefulness.
Why is Jacob Black,MDHS interim director, also Phils boy, not in trouble??? He was working at DHS. Didn't he sign off on all this for Families First to get the funding? Why is he not being arrested?
Its all who you know , huh??
And my bet is, this is all a way to set UP some of Phils buddies to get this grant money and start new programs!! You discredit Nancy and Zach New and put them out of business and then you help your buddies!!
i bet Josh Gregory is in the middle of it-Why? Because he needs money for nice house and plane and Phil is no longer in position to pressure everyONE to use Josh Gregorys agency!!
FOLLOW THE MONEY!!!!
I know Jacob, and I would be shocked if he is culpable in all this. What starts out as a legitimate way to spend the TANF grant—coming on the heels of the agency getting roasted for not spending the whole thing and having to return a lot to the feds—can morph into a corrupt enterprise without the knowledge and consent of all players. I believe Jacob has enough character to avoid all this.
6:33
Good lord, did you get passed over for promotion at DHS, or lose an account to Josh.
Take some lexapro and move on
Follow the stench... Philbilly, and crew...
Brett DiBiase was trying to be the next Million Dollar Man.
White folks stealing again. What’s new?
@6:33, Josh Gregory doesn't need money for a nice house and plane because he already has them. And it doesn't matter that Phil is no longer in a position to pressure folks to use Josh's agency because Frontier was smart enough to plan for the future and move on from Phil. In the last few election cycles they've handled statewide/regional campaigns for Michael Guest, Cindy Hyde-Smith, Delbert Hosemann, Michael Watson, Shad White, and Tom King. Now their strategy is to handle local legislative races - Rep. Joel Bomgar, Sen. Nicole Boyd, one of their few failures was Johnny Black - because they realize today's legislators are tomorrow's statewide office holders (i.e., Michael Watson). Josh basically controls Mississippi (Republican) politics, with the exception of Tate Reeves, which is why he recruited Bill Waller to run against Tate. Kudos to Josh for being more than a pretty face. Or maybe Josh is the face man and Quinton is the brains behind their operation.
Enrolled at New Summit and it’s Spectrum Academy are many children with Autism. I believe it’s the only Autism school in the state. I hope the children don’t lose their school because of the Director’s greed.
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