JACKSON, Miss. (localmemphis.com) –
The Mississippi State Auditor’s office has been investigating this embezzlement scheme for 8 months, and it was a whistleblower who brought the alarming allegations to Auditor, Shad White’s attention.
White says the investigation is still active with the possibility for more arrests and maybe more money found.
Thursday, the office of State Auditor for Mississippi held a joint press conference with Hinds County District attorney Jody Owens about the recent arrests made in a multi-million dollar embezzlement scheme allegedly taking place within the MS Department of Human Services.
According to the office of state auditor, Shad White, special agents arrested John Davis, the former Director of the Mississippi Department of Human Services (DHS); former DHS employee Latimer Smith; Dr. Nancy New, owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.; Zach New, Assistant Executive Director of MCEC; Anne McGrew, accountant for MCEC; and Brett DiBiase. The indictments include a range of violations involving fraud and embezzlement.
“You can tell from the indictments going into the millions of dollars you can basically add up what’s in the indictments and you’ll see we are already looking at an excess of 2 million dollars easily,” White said. “Used a variety of techniques to fraudulently obtain money and they produced fraudulent documents.”
The sprawling conspiracy involves former Department of Human Services Director, John Davis, and several individuals involved with sub grantee and non profit, Mississippi Community Education Center and New Learning Incorporated led by Dr. Nancy New.
According to the indictment, New was using federal dollars to pay for drug rehabilitation for former pro wrestler, Brett Dibiase.
“To those families you say I am incredibly sorry that this money did not go to your benefit as it should have but you should know that you have advocates who are standing up for you…this is not going to be allowed anymore it’s stopping right now,” White said.
Auditors concluded, after an eight-month investigation, the accused conspired to illegally obtain millions in public funds from the Temporary Assistance for Needy Families (TANF) program administered by DHS.
The family resource center in Hernando is currently operating under limited hours because of this investigation. And no child care is currently being offered at the facility.
Local 24 News has also learned some of the employees have not been receiving any paychecks due to the investigation.
Local 24 News Weekend Anchor Annette Peagler spoke to DeSoto County Supervisor Lee Caldwell who says it’s time to rally behind the workers who are currently not getting paid. She will have additional details on this investigation tonight at 10 on Local 24 News.