The bill is coming due for all the shenanigans in the DHS scandal. The federal government told DHS to repay $101 million misspent at DHS.
The Administration for Children & Families issued the demand in a December 20, 2024 letter to DHS Executive Director Bob Anderson. The agency is a division of the Department of Health and Human Services. The letter states:
This letter is the penalty notice being issued pursuant to 45 CFR 262.4(a) for the misuse of federal Temporary Assistance for Needy Family (TANF) funds by the Mississippi Department of Human Services (MDHS) during fiscal years (FYs) 2016, 2017, 2018 and 2019. As a result, the state of Mississippi is subject to a penalty amount of $100,880,029.
ACF discovered the embezzlement when State Auditor Shad White announced the arrest of Nancy New, DHS Executive Director John Davis, and four other individuals for fraud and embezzlement of DHS funds in February 2020.
The letter explains how the agency determined the penalty for Mississippi:
Mississippi Community Education Center was a Nancy New front organization. Hearts of David Ministries was operated by the Million-Dollar Man, former wrassler Ted Dibiase. It appears the feds did not look too kindly on that half-a-million dollars paying for a brand new volleyball court at Southern Miss.
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The state challenged the penalty in a February 18, 2025 letter to ACF. (p.15 below)
As you are aware, the agency has been involved for over two years in civil litigation aimed at recouping misused TANF funds. We have received hundreds of thousands of pages in the on going discovery process that MOHS is hopeful may assist in asce11aining the full extent to which funds for the four fiscal years involved were misused-as compared to those amounts set forth in both the Single Audits for the years in question and the forensic audit conducted for this agency by Clifton Larson Allen. These previous audits both categorized oil funds provided to certain subgrantees as ""unallowable"" based on a lack of sufficient documentation. Through our ongoing discovery efforts, we have been attempting lo validate the allowability or the misuse of a large portion of the funds. Thus, it is the position of the agency that the amount of penalty proposed by OFA is based on insufficient information and is disputed by the agency. It is the position of the agency that the vast majority of the suggested penalty is based not on evidence of misuse, but on a ack of documentation that we believe may now or soon be available.
Mr. Anderson asked for more time to respond to the notice.
Davis pleaded guilty to five counts of conspiracy and thirteen counts of fraud in Hinds County Circuit Court in 2022. He is serving a prison sentence of 32 years (although he will probably qualify for 25% treatment.). He pleaded guilty in federal court to conspiracy to wire fraud and commit theft of federal funds. He has not been sentenced. He is allowed to remain free until he is sentenced in the federal case. He is cooperating with prosecutors.
Nancy and Zach New pleaded guilty guilty to bribery of public officials, defrauding the government, RICO, and wire fraud in 2022 while agreeing to cooperate with the investigation. They await sentencing in Hinds County Circuit Court. The Court will not sentence them until after they are sentenced for their federal convictions. Nancy New pleaded guilty to one count of commit wire fraud and Zach New pleaded guilty to one count of conspiracy to commit wire fraud in 2022. They have not been sentenced yet for their federal convictions.
23 comments:
I guess the chorus of "small fish" Shad-haters will be silent on this one...
This is real waste and graph, Elon should be all over this one. You played now you must pay .
It’s amazing how former Governor Phil Bryant‘s name is nowhere in this post. Where there smoke there’s fire….
Shad's office was totally blind to this huge corrupt ordeal until an internal whistleblower (not named Phil) brought it to his attention.
Meanwhile, the mainstream media objects to the DOGE accusations of government fraud and abuse...
You are wrong 11:39, but unless I missed something, your boy Shad only reported those who spent the money, not those who gave it to them.
11:54 the word you are looking for is grift, not graph, but carry on.
Certain non-governmental organizations are responsible.
@12:09 PM, or more likely graft, but carry on.
Time to belly up to the bar and pay your bill you friggin' thieves.
This is known as "high hanging fruit."
Well just deduct that from the money the feds pay Mississippi and it’ll be paid back in a month.
This may come as a shock to all the Shadettes out there (but at least Shaddy hisownself ain't THAT dumb), but your boy - I'll start calling him a man after he gets past puberty - isn't on the front end of this collection, but he sure might take it up...oops...be on the ass-end of it. This is the Feds, and they've been doing this long before Elon shot his first rocket, Trump bankrupted his first company, or Shad was even a gleam in his parents' eyes.
As Hizzoner and DA Dumbass have discovered, they don't play when they aren't in the mood. A Whitman's Sampler, a handful of daisies, and a bottle of grocery-store Moscato (you know, Mississippi-big-shot-style woo-pitching) won't even get their attention, much less get them in the mood for some lovin'. Put another way, I'm sure they are looking for a roll, but it won't involve hay. To paraphrase Harvey Keitel, "Someone's got to go to prison, Ben...dover..."
Can we all sign a thank you card to Phil for his leadership.
The blood suckin' working poor and so-called dependent children and their welfare mothers will ultimately pay for this theft of the taxpayers hard earned money. Bet on it.
The Feds don't give a hoot about Phil Bryant. They care about the money. Getting the money back is a lot safer bet than trying to get Phil Bryant.
Hearing any footsteps, Feel?
@12:31,
I know it's Spring Break, but it's a little early to be that deep, dontcha think?
No Pigott, No Pulitzer.
Sorry for not being in the know, but please tell us what "No Pigott, No Pulitzer" means. Thank you!
"The Feds don't give a hoot about Phil Bryant. They care about the money. Getting the money back is a lot safer bet than trying to get Phil Bryant."
Spoken like someone who has never been in even the same ZIP code as a newish federal agent or AUSA looking to build up their stock and career. See, e.g., the jackpot Hizzoner and DA Dipshit are in. Catching crooks and putting them in prison is exactly what they get the big bucks to do. Besides which, that money is long gone but Phil and company are very easy to find, and a consolation prize beats no prize at all. Sure, there is civil action to try and get some blood out the turnip (patch) that is Mississippi, but that's different folks with different strokes.
Questions for the former governor, the former governor's appointed auditor, and the current governor: What did they know and when did they know it?
Bryant claims he is close to Trump. He did not get an appointment and now the Feds are collecting. Things that make you wonder.
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