More than $4M stolen from Miss. taxpayers in state’s largest public embezzlement scheme, documents show
JACKSON, Miss. (WLBT) - State Auditor Shad White announced six arrests Wednesday linked to the largest public embezzlement scheme in state history.
The arrests include more than $4 million in embezzled government money.
The arrests include:
- John Davis, former Director of Mississippi Department of Human Services
According to an indictment, Davis conspired with Nancy New to convert funds from the Mississippi Community Education Center to different bank accounts to pay Rise, a drug treatment clinic in Malibu, California, in order to pay for drug treatments for Brett DiBiase.
Documents show Davis helped DiBiase obtain $48,000 in taxpayer money through a business called Restore2, LLC.
Davis faces up to 10 years in prison and a $30,000 fine.
- Brett DiBiase, a former professional wrestler
According to an indictment, DiBiase conspired with John Davis and Gregory Smith to defraud the Mississippi Department of Human Services. DiBiase was paid $48,000 acting as the business Restore2, LLC, using a series of fraudulent and false claims to receive payment.
A second charge shows DiBiase helped cover these payments up by falsifying documents, invoices, books, reports and ledgers.
DiBiase faces up to 10 years in prison and a $15,000 fine.
- Ann McGrew, a former accountant for Mississippi Community Education Center (MCEC)
According to documents, McGrew conspired with Nancy New and Zachery New to convert funds from MCEC to bank accounts owned by New Learning, Inc., a private company owned by Nancy and Zachery New. This embezzlement includes more than $2 million that was used by the News for their own use.
A second charge says McGrew helped cover up these funds by falsifying information.
McGrew faces up to 25 years in prion and a $35,000 fine.
The News indictments includes more than 10 charges. The charges show he converted funds from MCEC to several other bank accounts. That money was then used to invest in Prevacous and PresolMD, which were owned by Nancy and Zachery New.
This includes $1.9 million that was used to fund Prevacus and another $250,000 used to fund PresolMD.
Nancy and Zachery New face up to 170 years in prison each and a $220,000 fine each.
- Gregory Latimer Smith, a former employee of Mississippi Department of Human Services
Documents show Smith worked with Davis and DiBiase to help funnel $48,000 to DiBiase through Restore2, LLC.
Smith faces up to 15 years in prison and a $20,000 fine.
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