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State Auditor: Former DHS director, five others arrested in largest public embezzlement case in state history

They allegedly conspired to illegally obtain millions in public funds from the Temporary Assistance for Needy Families program administered by DHS, according to the State Auditor’s Office.

Posted: Feb 5, 2020 6:30 PM
Updated: Feb 21, 2020 10:22 AM

JACKSON, Miss. (WTVA) - Special agents with the State Auditor’s Office arrested six people, including the former director of the Mississippi Department of Human Services, in connection with a multi-million dollar embezzlement scheme.

The arrestees are:

(Top L-R): Davis, N. New, DiBiase | (Bottom L-R): Smith, McGrew, Z. New

  • John Davis, the former director of the Mississippi Department of Human Services (DHS)
  • Latimer Smith, former DHS employee
  • 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
  • Brett DiBiase, the son of former professional wrestler Ted DiBiase

They allegedly conspired to illegally obtain millions in public funds from the Temporary Assistance for Needy Families (TANF) program administered by DHS.

They used a variety of business entities and schemes to defraud taxpayers, according to the State Auditor’s Office. 

The total amount of money has not been determined, according to the State Auditor’s Office, but the amount will be a record for the state office.

The following paragraphs are from the Auditor Office's Wednesday press release.

"Davis and Smith stand accused of fraudulently manufacturing documents to enrich Brett DiBiase using TANF money. Davis and Smith created invoices to pay DiBiase TANF funds for teaching classes about drug abuse, but DiBiase was in a luxury rehabilitation facility for his own drug use in California at the time and did not perform the services. Davis and Smith created documents and arranged payment knowing DiBiase was not performing the work he was hired to perform.

Nancy New and her son, Zach New, stand accused of using the News’ non-profit, MCEC, to pay for DiBiase’s drug treatment using TANF funds. At Davis’ direction, MCEC used TANF money received from DHS to pay for DiBiase’s opioid treatment at the Rise in Malibu facility. The documentation submitted by the News claimed this was to pay DiBiase for conducting training classes that never, in fact, took place.

The News also stand accused of transferring millions in TANF funds to their private businesses. They then converted funds to their personal use and concealed the conversion through various fund transfers, fraudulent documents, at least one forged signature, and deceptive accounting measures.

Finally, Davis and the News are accused of creating a fraud scheme to take TANF funds to pay for personal investments in medical device companies (Prevacus, Inc., and PreSolMD, LLC) in Florida."

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 516486

Reported Deaths: 10299
CountyCasesDeaths
Harrison35042558
DeSoto33463432
Hinds32797643
Jackson24926392
Rankin22593405
Lee16523245
Madison14978283
Jones14191248
Forrest13852260
Lauderdale12326323
Lowndes11387193
Lamar10713140
Pearl River9759244
Lafayette8881143
Hancock7848132
Washington7561169
Oktibbeha7234138
Monroe7091179
Pontotoc7060110
Warren6892178
Panola6807135
Neshoba6753210
Marshall6735142
Bolivar6472151
Union645699
Alcorn5950108
Pike5947157
Lincoln5544136
George511080
Prentiss510185
Tippah497983
Itawamba4903107
Scott479499
Tate4786118
Adams4784125
Leflore4756144
Yazoo458492
Copiah458395
Simpson4577117
Wayne443772
Covington435395
Sunflower4331106
Marion4311112
Coahoma4259110
Leake414491
Newton396182
Tishomingo388894
Grenada3796109
Stone366466
Attala341690
Jasper341566
Chickasaw319167
Winston318892
Clay313978
Clarke301995
Calhoun288950
Holmes273389
Smith270852
Yalobusha245847
Tallahatchie232653
Greene225449
Walthall222166
Lawrence220842
Perry214656
Amite210357
Webster206748
Noxubee188843
Montgomery182757
Carroll175841
Jefferson Davis174643
Tunica163939
Benton153439
Kemper145541
Choctaw137827
Claiborne134839
Humphreys132339
Franklin126630
Quitman107928
Wilkinson106139
Jefferson97334
Sharkey65321
Issaquena1957
Unassigned00

Alabama Coronavirus Cases

Cases: 848779

Reported Deaths: 16185
CountyCasesDeaths
Jefferson1164582005
Mobile744601384
Madison53563738
Shelby38454371
Baldwin38215589
Tuscaloosa36172644
Montgomery34573782
Lee25690264
Calhoun22636520
Morgan22548411
Etowah20075520
Marshall18865318
Houston17795426
St. Clair16968359
Limestone16206220
Cullman16170306
Elmore15952295
Lauderdale15093307
Talladega14267302
DeKalb13095271
Walker12180380
Blount10791193
Autauga10562157
Jackson10221196
Coffee9440192
Colbert9376210
Dale9049192
Tallapoosa7287202
Russell711465
Chilton7098170
Covington6973197
Escambia6969144
Franklin6369108
Chambers5810142
Marion5446132
Dallas5306210
Pike5135109
Clarke486086
Lawrence4852130
Winston4804110
Geneva4656136
Bibb436495
Barbour370880
Butler3445101
Marengo342993
Monroe338566
Randolph338067
Pickens335090
Fayette332285
Henry321266
Cherokee320564
Hale319589
Crenshaw261878
Washington256852
Cleburne255460
Lamar253555
Clay253169
Macon246367
Conecuh193562
Coosa186048
Wilcox178538
Lowndes178468
Bullock152845
Perry141940
Sumter139841
Greene130745
Choctaw94628
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