Thursday, July 15, 2021

Indictments Pile Up Against News

The indictments continue to pile up against Nancy New and her son Zach.   A federal grand jury indicted the News for four counts of identity theft Monday.  The News were indicted in March for conspiracy, 7 counts of wire fraud, 4 counts of aggravated identity theft, and conspiracy to launder money.  The indictments accuse the News of bilking the Mississippi Department of Education for MAEP funds for New Summit schools.  

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).  Earlier post. 

The Justice Department alleged Nancy billed MDE for her own teaching even though she never taught a class:  

For three of the four academic years, NANCY W. NEW and ZACHARY W. NEW fraudulently submitted false claims to the MDE that NANCY W. NEW worked full-time for the entire academic year as a teacher who taught eligible students at NSS in Jackson, knowing that NANCY W. NEW did not teach full-time during those years, which resulted in fraudulent reimbursement to NLR of $67,370.00 for NANCY W. NEW for each of those three years.

The alleged fraud covered identity theft as well.  The News allegedly used the names and Social Security numbers without permission to submit phony claims.  The new indictments charge the News stole the identities of RW, PC, PT, and JR to commit more fraud.  

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 have not yet been arraigned.  The case is assigned to U.S. District Judge Carlton Reeves. 

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. 

Kingfish note: The cases in Hinds County were dealt a setback thanks to Circuit Judge Adrienne Wooten.  The Hinds County District Attorney flipped the bookkeeper, Anne McGrew but Judge Wooten rejected the plea deal.  Flipping the bookkeeper is usually a coup in most prosecutions for obvious reasons.  


40 comments:

Anonymous said...

Anyone know the status of the 2021-2022 school year for New Summit? Website doesn't even list next years schedule.

Anonymous said...

It NEVER stops.

Anonymous said...

But I go to church with them and still think they are good people

Anonymous said...

@ 8:50

It is my understanding they haven’t even paid their teachers from last year. I highly doubt they will be open for business in the fall.

pjm said...

@8:50 we pulled our kiddo out last year but according to one of the mom's they're returning deposits for the upcoming year....so.

Anonymous said...

I believe there was a group of parents who tried to buy/take over the school but the News still technically own it and would not make a deal. POS

Anonymous said...

Brett better start picking up coke bottles…

Anonymous said...

This is a most interesting case. I've been a criminal defense attorney for over two decades and I have never seen a case handled quite like this from the prosecution’s side. These folks have been charged time and time again and are paraded through the court of public opinion every few weeks in what is obviously nothing more than an effort to keep this case in the mind of potential jurors. There is no doubt an indict first, investigate later mentality involved here and while the allegations continue to pile up, it doesn’t add up to me. I get the impression that in spite of all the allegations, this case isn’t as rock solid as the prosecution would have us all believe. The word out of the DA’s office continues to be that the State’s case is on life-support, with or without the book-keeper flipping. And the rumors remain rampant of certain high profile political officials involvement in many aspect of this case. This trial is going to expose a great deal that is going to be very eye-opening to us all.

Anonymous said...

Child molesters, rapists and murders don’t get this kind of treatment by the prosecution and the media. I have no clue if these people are guilty or not, but dirty politics are over over this thing. Somebody is wanting to bury these people.

Anonymous said...

I’ve been a lawyer for 26 years and this case befuddles me too.

How can people entrusted with public funds leech off those funds and enrich themselves to the public detriment?

If the News had been black and had 1 oz of marijuana they’d be in detention with a billion dollar bail.

But….be white and steal money from the poor and people come on websites and proclaim their innocence.

Strange - not really strange

Anonymous said...

Thank you 0927 my thoughts exactly!

Anonymous said...

Brett needs to pay MS back now ASAP! Taxpayers deserve better and so does Mississippi. I hope they go to prison for years!

Anonymous said...

Ah, the race card. That took longer than normal.

Anonymous said...

Some of the biggest crooks in the world wrap themselves in pages from the bible

The district attorney said...

Show us on the doll where Brett touched you, 9:17 and 10:16.

Confused us said...

And I quote, "my thoughts exactly". If two people are thinking the same thing, one isn't doing any thinking.

Anonymous said...

When will Shad finally reveal, if he ever does, that the prime mover and shaker behind this fraud is none other than our former Governor, Phil Bryant?

Anonymous said...

this is all you need to know about the unfortunate New family.
they are under indictment in the federal system.
being under indictment in the federal system is the legal equivalent to having a case of the ebola virus.
its the worst place you can be.
the feds got about a 99.9% conviction rate.
remember the Chris EPPS film flam?
about 20 people indicted, all convicted. no one ever even went to trial.
couple of people on this thread claiming to be lawyers.
one is 'befuddled''.......another says ' it doesn't add up''.......
apparently they are unaware of the how the federal system works.
they just dont know..........well......now they know.

Anonymous said...

@9:27 & @9:59…. Regardless of how long you’ve been practicing law- I’m pretty sure the cases against the News (both the state and federal) are pretty unprecedented? Am I wrong in my understanding of that? I agree that this is intertwined into some big names in the state as well. We’ve only just begun to hear I’m afraid.

@9:10- I can tell you they have not paid their teachers. Today marks the 4th pay period they are owed and haven’t been paid. With NO communication from the News, Balentine, etc. The conservator emailed everyone could go file for unemployment.

Anonymous said...

the New's are sunk .paragraph 5, line 6, of the indictment, refers to them as ''confederate''. this is an attempt to inflame black jurors against them.

Anonymous said...

Lot of lawyers here for sure, but this is TV drama. And you goose-steppers don't want to indict the enabler, Pheel, because that would be the beginning of the end for the GOP at the mansion (maybe luckett would run again). Low security for the mom and kid, impossible pay back agreement, other kid walks, maybe looses cushy state job (ya'll knew that, right?) and then its all forgotten.

btw, I admire your restraint, in not covering your favorite persecution complex lawyer's recent drama:)

Anonymous said...

11:27 is dead on target.
people on this blog have very short memories.

Anonymous said...

Attn 11:27 Your comment that the fed has a 99.99% conviction rate. I will remind you the Bill McHenry was deemed innocent through the federal trial system.

Anonymous said...

@9:06 - Going to church doesn't mean squat! All it tells is that they're overly concerned which direction they may go when they leave this material world.

A thief is a thief whether they go to church or not.

Anonymous said...

Amen 12:54! If I remember correctly, all persons that attend church still commit sins throughout their lives. How are the News' any different?

Anonymous said...

Three observations :

1. What ever happened to "innocent until proven guilty" ? I've never seen anybody more persecuted before they have their day in court. Kinda reminds me of the screams in Jerusalem : "Crucify him ! Crucify him!"

2. If the cases are so solid, why in the world does the prosecution keep putting it off ? So maybe they can break them into pleading guilty (even if they are not)? We all know prosecutors are the devil incarnate and would indict a ham sandwich if it helps them save face.

3. Anyone with a brain can see that there is someone much higher up than the little ole News who doesn't want them to be able to talk (i.e. go to trial) running this from behind the scenes.

Anonymous said...

My guess is the Deputy Sherriff was the one directing the News. He is a USM grad.

Anonymous said...

I agree with 9:27. How long can you try these people in the media circus and not give them the chance to respond? The News were ready to go to trial before COVID! Funny how the state auditor and former powers that be can keep negativity in the media. That’s just not right.
Those of you holier than thou people need to stop throwing those stones. That is just the type of persecution and mindset they want people to have against the News.
As for flipping the bookkeeper……having worked in the past with her, she should hope nobody questions her bookkeeping abilities or her work ethic. Just saying…….

Kingfish said...

The feds indicted them in March. That was only a few months ago. There is nothing dragged out about the federal case.

The state arrested the News in February. It is now 17 months later but frankly, that is typical for Hinds County. The real news for the News would have been if it had gone to trial within a year.

Anonymous said...

These people getting on here defending the News obviously didn’t work for them. Let me just tell you, when you know, you know. The same parrots get on every thread regarding them and bring up “deppity pheel” and talk about how people are persecuting the News or bring up how there must be a crap case against them because of how long it’s taking. All those posts are sounding the same… could it be one of the News or their few remaining buddies? I assure you there’s TONS of former employees on here setting things straight- it’s not been just 1 or 2.

Kingfish is right. But to add, the first indictments in Feb. 2020 were part of an ongoing investigation. We still haven’t seen the forensic audit? And shortly after we had massive flooding in Hinds, then a pandemic amongst all the other 2020 chaos. The timetable is probably nothing.

Anonymous said...

to 12:39...right ,,McHenery was acquitted.......you seem to be real knowledgable in this area . now, name me all other acquittals handed down in mississippis federal court criminal
system in the past 5 years.
take all the time you need.
ill be waiting patiently right here mr big mouth.

Anonymous said...

Love how all these anonymous former employees get on these sites and bash these folks after the fact and claim that “when you know, you know.” Everyone wants to be the expert now and have the inside scoop. It’s laughable. Many of you people demonize these folks who you apparently claim to have worked for for a long time. Funny how attitudes change when the teet dries up.

Anonymous said...

@3:56 regarding that forensic audit, the auditor is a party to that audit. Anyone who expects those findings to be any different that what he’s already alleged is smoking crack. That’s a total waste of money for political purposes in my opinion. But, this is Mississippi.

Anonymous said...

I am a boner fido so called DEPPITY PHEEL name dropper an let me assure you I AINT ONE OF THE NEW FAMILY PARROTS!

LET ME MAKE IT CLEAR TO YOU: During Deppity Pheels administration certain things happened that would have never happened if Mississippi had elected Johnny Dupree or Robert Gray.

About all one needs to know is that Deppity Pheel was Bass Hog Barber's Light Gubner.

As to where Pheel and family have been and what they've been up to, whether with respect to the News' or not stay tuned!



Anonymous said...

They are victims of socialism. Like so many Republicans they became so addicted to socialism they wanted it all for themselves.

Anonymous said...

@4:46, hi, Nancy! So glad you could join us! Haha. The “teet” that dried up did so because they were EMBEZZLING money from the nonprofit into the school to keep it afloat! They had to have all those fancy buildings to tour their friends in high places around and take photos with! I guarantee you either drank the New kool-aid too long or you were only on the perimeter…not dealing with the day to day. Or maybe you think Bc you read articles or went to church with the Nancy you know what all was happening. I assure you, you do not.

@6:12…. Uh ooookkkkaaaay.

Anonymous said...

If they were going to steal like that, they should have run for mayor of Clarksdale, Mississippi. That way it would have been legal.

Anonymous said...

The 2020 flooding was nowhere near massive.

Anonymous said...

Popcorn time again!!

Anonymous said...

@2:19 hmmm….not giving the News a chance to respond? Who keeps requesting trial delays? Look at the court records, it’s not the state or the feds. Also, as to Anne McGrew’s work ethic, I worked with her for 8 years and she was at the office everyday by 7 and never left before 5:30. Not sure what you’re talking about, other than spouting off as one of Nancy’s “drank the kool aid” mouthpieces.


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