Lee O. Sanderlin is an investigative and political reporter covering the state of Mississippi. Internships March 23, 2023 JACKSON, Miss. JACKSON, Miss. Continue Reading, JACKSON, Miss. "The Department received the letter and will review it," a spokesperson for the Justice Department told ABC News in a statement. His father and grandfather were oilfield pumpers, and his mother and grandmother were public school teachers. Mississippi 750 North State St. Jackson, MS 39202. The charges are one count of embezzlement, three counts of false representations to. PHOTO: US Attorney General Merrick Garland speaks during a news conference at the Justice Department in Washington, April 1, 2022. In this May 4, 2017, file photo, Nancy New, owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc., is shown at a social function in Jackson, Miss. Six people have been indicted on state charges in the case. TUPELO Unveiling more details about his investigation into the spending of federal money intended to help the needy, State Auditor Shad Whit Mississippi auditor Shad White finds $118M in . Since Auditor Shad White arrested Gov. PBMS, pharmacy benefit managers, are companies that manage prescription drug benefits on behalf of drug programs like health insurance, Medicare, and the state Medicaid program. You get those complaints that come in, and its what did you know and when did you know it. Brett Favre to remain defendant in Mississippi welfare case, judge rules. Phil Bryant. Indictment, Brett DiBiase Pleads Guilty in Federal Court, Former City of Jackson Constituent Services Manager Pleads Guilty, Auditor White Hosts Panel Discussion on the Importance of Present Fathers. the law, and earned a certificate in forensic accounting (the use of accounting to discover fraud) from the University of North Carolina at Charlotte. Richards filed its first complaint against the mayor and council last summer for failing to pay the company for trash collection services. (601) 321-6000 Email Website Facebook Twitter. Knowing what we know now, clearly he should have recused himself and should be recusing himself now.. At Whites swearing in as auditor after he appointed him, Bryant said: When I was auditor, I used to enjoy saying, In God we trust. Want more WLBT news in your inbox? Three former state auditors say they would have recused themselves or limited their involvement in the investigation into Mississippis welfare fraud scandal to avoid perceptions of conflict of interest due to current auditor Shad Whites close relationship with former Gov. It would potentially be approving an unauthorized expenditure, said Williamson. It was valuable work that helped us resolve a potential stop of picking up of garbage.. On the weekends, his father was The Deputy Director over the Investigations Division, or his/her designee, may be authorized by the State Auditor to meet in a closed session with a public body to discuss preliminary investigative findings, to give public officials notice of demands for recovery of public funds or More than two years later, federal authorities have not brought any charges related to the welfare scandal. Mississippi has contracted with UnitedHealth, under the name UnitedHealthcare of Mississippi, for Medicaid and Children's Health Insurance Program, or CHIP, benefitssince 2017. White's office helped lead the investigation into Mississippi's $77 million welfare fraud scandal, . The fraud allegations were first revealed in 2020 by state prosecutors in one of the largest cases involving embezzlement claims in state history. Mississippi Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Advertising Non-Discrimination Certification. Deputy Director, Criminal Investigations Division: Mississippi, USA bxxxxxd@osa.ms.gov: Fletcher Freeman: Deputy Director Of Communications: Mississippi, USA . [ @5 Y02YUU (s %I ea ) }Pr"aTH6 xRN The state auditor's office also declined to provide further details, citing the need to protect an ongoing investigation. When asked why the item was removed, Deputy City Attorney Terry Williamson said the city attorneys office made the decision after the state auditor reached out regarding the bills and after city legal noticed discrepancies in the hourly rate approved by the council and the amount charged by the attorney. The investigation could include names not already released in civil complaints issued this week by State Auditor Shad White. xY]o6}7pbf8i3kx`^xsn;)L}/zE'tAHdqvAv5\b:9:X4IqGN;Z7nTWz3\TFSt7"hUZ2m+(GqrI((9}*JA4p&HAittQ:YIX}0|("8viY0m|k@d(Fs >)% d( ,w@VD Cj x@ dPm RAB a If extrapolated to the entire Medicaid program, Mississippi could be wrongly paying out between $130 million and $145 million, annually, to ineligible beneficiaries, according to the report. Today State Auditor Shad White announced Jonathan Smith, a former employee of Jackson County, has been convicted of two counts of embezzlement. Bryant was actually the whistleblower who prompted the auditors office investigation. However, one attorney that was part of the same firm was billing the city at a rate of $375 an hour, he said. ", He said in the two-page letter to Garland that "failure to investigate may lead to the impression that DOJ is continuing the previous administration's pattern of looking the other way when laws are broken by white state officials, especially when the wrongdoing disproportionately harms minorities. In its report, the auditors office found two people who were receiving benefits despite reporting six-figure incomes on their state taxes. Attorneys for Nancy and Zach New did not respond to a request for comment from ABC News. However, state Medicaid recipients are not the only Mississippians impacted by PBMs. It's unclear where any continuing federal or state investigations stand at the three-year mark. . The auditors office refused to turn the messages over to Mississippi Today after a public records request, and the outlet has a pending Ethics Commission records complaint against the office. There was an error and we couldn't process your subscription. Faulk has also been issued a demand letter totaling $22,031.26. But now they initiate the action to look at some invoices with all the other things that could have popped up on their radar?, Did they all of a sudden call the city up and say, Hey, weve been looking at your invoices, and we want to make sure that you guys are doing everything OK? Hartley said. Legislative Update All rights reserved. State auditor talks about duties, current investigations. "In June 2021, the State of Mississippi reached a $55.5 million settlement with the Centene Corporation and their PBM thanks to this investigation," OSA said in the report. MDHS continues criminal investigation into misspent TANF funds, Former U.S. Attorney Brad Piggot is assisting with the investigation, Truck possibly connected to Hinds County jail escape found in Newton County, Teen arrested after two dead, four others injured in Bay St. Louis shooting, Paraplegic fisherman speaks to Beulah Baptist Church, Eleven players with Mississippi ties selected in 2023 NFL Draft, City of Byram awarded thousands of state dollars for infrastructure projects, Belhaven football puts a smile on the face of little girl, First Alert Forecast: mild breezes Monday; rain, storm chances return late week, Request a First Alert Weather School Visit, Advertising Non-Discrimination Certification. The NAACP called on Attorney General Merrick Garland to investigate years of allegations of widespread welfare fraud and misspending in Mississippi totaling over $94 million, according to a letter obtained exclusively by ABC News. We prefer Author Name, Mississippi Today in the byline. Fax: 601.576.2687 endobj We were unable to get a six-year contract and there were questions and audit agreed that they thought, that based on the fact that we had consecutive emergencies, that could put us in trouble, the mayor said. Anderson tells us it is ultimately going to be the discretion of the feds to determine who is culpable in this case. Any web site our stories appear on must include a contact for your organization. Find out what jobs are open by sending an email to Recruitment@osa.ms.gov or follow the instructions below. Independent pharmacies across the state are pushing back at what they call unfair practices when it comes to PBM reimbursement.. We look forward to a swift recovery of these funds.. Neal also pleaded guilty to making fraudulent statements. 25, 2023 at 4:28 PM PDT JACKSON, Miss. We talked with the city attorney about that, and I wasnt satisfied with her answer, Foote said. <> At least two Mississippi Medicaid recipients are making six figures and living in million-dollar homes, according to State Auditor Shad White, and he wants legislators to strengthen Medicaid. Careers Patterson said that were he in Whites position, I would hope that I would have recused myself or brought the attorney general in to do the investigation., Having said that, its a timing thing, Patterson said. At the center of the state's UnitedHealth probe is OptumRX, a UnitedHealth subsidiary that manages prescription drug plans. Neither person is named in the report because the investigation is ongoing. By clicking submit, you agree to share your email address with Mississippi Today. What is the cost of Mississippi deciding not to expand Medicaid? Before joining the staff at Mississippi Today in September of 2018, Anna worked for three years at Clarion Ledger, Mississippis statewide daily newspaper. endobj The Office of the State Auditor continues to serve as a watchdog organization to ensure that tax dollars are protected, and we pledge to perform our jobs with integrity, honesty and a commitment to excellence, White continued. Mississippi is now taking steps to give investigators more time to look into bribery cases. All rights reserved. The Mississippi Department of Human Services said in a statement Monday to ABC News: "The Mississippi Department of Human Services (MDHS) has been in limited, one-way communication with the federal authorities. 2 0 obj Box 1699 Jackson, MS 39215-1699. Nearly three years after the massive scandal involving at least $77 million in misspent or stolen federal welfare dollars, the state Department of Human Services on Monday announced a civil lawsuit attempting to claw back $24 million from famous former athletes and pro wrestlers including Bryants friend Brett Favre and Ted The Million Dollar Man DiBiase among others. Internships Pender brings 30 years of political and government reporting experience to Mississippi Today. The attention was drawn from them to the city, he said. (WLBT) - New information into the largest embezzlement and fraud case in state history involving misspent TANF money - funds meant to help needy families in Mississippi. Mississippi's state auditor on Monday demanded a private prison operator pay nearly $2 million after the company improperly billed the state for thousands of prison guard shifts that were never actually worked. Marshand Crisler, a candidate for Sheriff once again, now faces federal charges related to soliciting bribes and providing ammunition to a convicted felon. White also faced questions early on and criticism from the U.S. Attorneys Office as to why he didnt promptly bring in federal authorities, who have massive investigative resources, particularly since the malfeasance involved federal tax dollars. Ole Miss shows they have some fight left in them. The panel was held at Germantown High School and comes after Auditor White issued an August 2022 report showing the societal and economic costs of fatherlessness in Mississippi. But shortly after the arrests, White said that then-Gov. Shad went on to earn degrees from the University of Mississippi, Today State Auditor Shad White announced former Coahoma Community College employees Gwendolyn Jefferson and Stacie Neal were each sentenced to serve five years in prison. <> 7 0 obj However today, the Auditors office says PBMs are large corporations that have incredible power in the pharmaceutical industry. If you share our stories on social media, please tag us in your posts using. To learn more about our cartoon syndication services. Continue Reading, JACKSON, Miss. You cant edit our stories, except to reflect relative changes in time, location and editorial style. Jackson, MS 39205-0956 The total amount of funds recovered by the Office of the State Auditor for Fiscal Year ending June 30, 2021, was The Office of the State Auditor continues to serve as a watchdog organization . endobj We continue to protect the publics trust through evaluations of accounting practices and aggressive investigations of alleged wrongdoing. She has quickly established trust in the Capitol as a fair, honest, and hardworking young reporter. PIE Application, Mississippi Office of the State Auditor 2020, Statute of Limitations on Bribery Increased, State Auditor Shad Whites Statement on Theodore Teddy DiBiase Jr. JACKSON, Miss. Mississippi Todays The Backchannel investigation, State Auditor Shad White discusses welfare investigation, former Gov. ", Johnson urged "in the strongest possible terms to take immediate action to investigate and prosecute those involved in this massive theft of federal funds.". Keith. Centene also received two contract extensions. The questionable funds included $5 million for a lease agreement for a multi-purpose wellness center that would later become a volleyball stadium, $635,000 for a virtual reality lab that included individuals who weren't identified as needy and $44,000 to retired professional football players for football camps that focused on student-athletes and did not address helping at-risk youth. On Tuesday, the council voted down the claims docket after an item to pay approximately $45,000 in councils attorneys fees was pulled from it at the behest of the City Attorneys Office. Phil Bryant have helped cast doubt over the independence and rigor of the state welfare investigation led by White. They have been privy to everything thats been going on in the city of Jackson for the last year, year and a half regarding garbage, he said. Anne McGrew, an accountant for the MCEC, pleaded guilty in October 2021 to one charge of conspiracy to commit embezzlement. Our goal is to not only recoup these funds, but to hold all appropriate parties accountable for fraud, waste, and abuse related to the federal block grant because ultimately the state of Mississippi will be held accountable for these misused funds in the amount that U.S. Health and Human Services (HHS) determines was misused. He served as policy director when Bryant was lieutenant governor and was his gubernatorial campaign manager in 2015. Mississippi Office of the State Auditor United States employs 43 employees. The state's settlement with Centene provides a glimpse of what the UnitedHealth probe may center on. Attorney Lawrence Deas confirmed to the Clarion Ledger Monday morning his firm is still investigating. Six people including John Davis, have been indicted on state charges in the case. MDHS has provided information relevant to the case as requested by federal authorities, but has not been apprised of the status of the federal investigation beyond a statement that it is on-going.". Federal criminal investigations are notoriously slow, but also notoriously thorough. William Winter, whom I worked for as governor and a little bit on a campaign and I was his legal counsel, Mabus said. The council had refused to pay Richards because it never approved a contract. Favre has not been charged and has since started repaying the funds, according to the AP. Note: After this story published, Auditor Shad White responded on Twitter. Scanlon told WLBT previously that the memo was drawn up to hurt the councils chances in that case. ", Johnson said the Mississippi state auditor's findings were referred to the Justice Department, "however, nearly two years later, despite the overwhelming documentary evidence of fraud, forgery, and abuse in this matter, DOJ has not yet launched a criminal investigation. The council eventually settled with Richards out of court and agreed to pay the company roughly $4.8 million in back pay for work already done, as well as more than $800,000 a month through March 31 this year. We believe the taxpayers of Mississippi deserve no less., By joining our newsletter, you are confirming that you agree with the Privacy Policy. We do not sell or share your information with anyone. Bryant said at the time that he wanted someone with independence who did not have numerous political relationships and ties to the government officials and institutions he would be auditing. An April 14 email from City Attorney Catoria Martin to council members informed them that since April 5, we have received daily requests for additional information and for updates on the information previously provided.. a proud member of the He previously served as an investigative reporter and political editor at the Sun Herald, where he was a member of the Pulitzer Prize-winning team for Hurricane Katrina coverage. In a sampling of 180 benefit recipients, the auditors office found nine examples of people making too much money to qualify for Medicaid benefits. That is what actually led to the meeting, the mayor said. Toll Free: 1.800.321.1275, Contact He said the mayors independent attorney had filed a motion the same day the memo was released referencing a confidential document that was going to be filed Monday questioning whether the council had the legal authority to hire outside counsel. We are confident that as this process moves forward, any entity (including those not named in the civil complaints), will be identified and held accountable. endobj Transparency In Mississippi, the state contracts with health providers to provide Medicaid coverage to nearly 500,000 people. Anna has received national recognition for her work, including the 2021 Goldsmith Prize for Investigative Reporting, the 2021 Collier Prize for State Government Accountability, the 2021 John Jay/Harry Frank Guggenheim Excellence in Criminal Justice Reporting Award, the 2020 Al Neuharth Innovation in Investigative Journalism Award and the February 2020 Sidney Award for reporting on Mississippis debtors prisons. Bryant has since acknowledged that the content of his messages doesnt look good, but while the auditors office has possessed the records for over two years, it concealed them from the public and has not made any indication it has further investigated the matter. But the findings are statistically significant and can be reasonably extrapolated, according to Stephanie Palmertree, director of finance and compliance at the State Auditors Office. Today State Auditor Shad White announced that Special Agents from his office have served Management & Training Corporation (MTC) with a civil demand totaling nearly $2 million after the company failed to follow the terms of its contract to operate the Mississippi Department of Corrections (MDOC) facility in Marshall County. Jefferson and Neal were both arrested in June 2019. Mills voluntarily reduced his hours by so much on our first bill that his effective rate was $183 per hour, and the city is aware of that discount we gave to the city, Scanlon said. $10 million has been recovered from hundreds of other investigations.. Mississippi's auditor says $70 million in federal welfare funds went to Brett Favre, a sports complex and an ex-wrestler in a scandal that has rocked the poorest state. Phil Bryant on Tuesday, July 17, 2018, moments following his being sworn in to office at the Capitol. As part of these agreements, the price of prescription drugs are capped. Our stories may appear on pages with ads, but not ads specifically sold against our stories. In the case of the welfare scandal, Auditor Shad White's office turned over information to the Hinds County District Attorney's Office that suggested Nancy New . Phone: 601.576.2800 the University of Oxford, where he studied as a Rhodes Scholar, and Harvard Law School. To those families, I say, I'm incredibly sorry that this money did not go to your benefit as it should have. Lumumba said the city did initiate a conversation with the auditor, but it was related to a question on whether he could declare an emergency over garbage pickups. Got a story tip? An investigation into whether UnitedHealth is also wrongly charging the state's Medicaid program for prescription drugs is ongoing. Continue Reading, JACKSON, Miss. The new law increases the statute of limitations on bribery from three years to five years. Federal authorities and internal investigators at Mississippi Department of Human Services eventually began investigating the subgrantee, 100 Black Men of Jackson, an agency spokesperson told Mississippi Today on Tuesday. - Today State Auditor Shad White announced former Hancock County Coroner James Faulk has been indicted on multiple charges. Meanwhile, USM must find some. The case was prosecuted by District Attorney Angel McIlraths office in the courtroom of Judge Kathy King Jackson. 5 0 obj - Today State Auditor Shad White announced former Hancock County Coroner James Faulk has been indicted on multiple charges. 9 0 obj not the other way around.. Her background in political science helps her cut through the noise to find and explain the truth. Adult Protective Services: Mississippi Department of Human Services. Pharmacy benefit managers, or PBMs, are third-party groups that negotiate drug prices with pharmaceutical companies and drug stores. Published: Apr. Confirmation of the probe comes a week after Mississippi Attorney General Lynn Fitch and State Auditor Shad White announced a $55 million settlement with Centene, another Fortune 500 company, to resolve allegations Centene had over-billed the state Division of Medicaid for prescription drugs. Although its billing practices have been under investigation since 2019, the State Division of Medicaid has extended its contract with UnitedHealth twice since then. One of the recipients of almost $1.1 million in welfare funds was former Green Bay Packers quarterback Brett Favre, who lives in Mississippi. It is ultimately going to be the discretion of the feds to determine who is culpable in this case.. The auditor's office has been investigating several of the state's pharmacy benefit management contractors since 2019, after hiring Ridgeland-based law firmListon & Deas on the state's behalf. He also said that the letter of engagement with the firm in question included the $375 for when its senior partner participated. Got a story tip? Transparency pic.twitter.com/rDuj6yHTo6. ", White said in 2020 after the indictments, "This is an example of money going to or should have gone to folks who needed it through a federal program, Temporary Assistance for Needy Families (TANF). Governor Tate Reeves signed House Bill 405, authored by Representative Nick Bain, R-Corinth, which increases the statute of limitations on bribery from three years to five years, imitating federal law. Do Not Sell or Share My Personal Information. Instead of paying New York litigators to try this case, hed be better off fully repaying the amount of welfare funds he owes the state., JACKSON, Miss. But the people who are at risk now are the people who vote on claims all the time.. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. 3 \2RJB* " ?e)! (AF~R0gH@PXu$6BLQkQ([ (- F-BJ6i0o*/wr{`f (d)/@53@b-WzHa I R$Sb % |2 `Y X}f, ~"##Y\\~ Careers Hurst, a Trump administration appointee who left office in early 2021, declined a recent request for comment on the case. Recouping taxpayer monies part of State Anne Summerhays is a recent graduate of Millsaps College where she majored in Political Science, with minors in Sociology and American Studies.