The case was prosecuted by District Attorney Angel McIlraths office in the courtroom of Judge Kathy King Jackson. The Office of State Auditor Shad White has issued the following statement: Everything Auditor White has said about this case is true and is backed by years of audit work by the professionals at the Office of the State Auditor. 6 0 obj State Auditor Shad White told the Magnolia Tribune that his office continues to work month in and month out to recoup such funds for taxpayers. In a state where about a quarter of Mississippians receive Medicaid benefits, a sampling of 180 peoplemay feel small. Do Reeves, Gunn consider IUDs contraceptives? There was an error and we couldn't process your subscription. Whites relationship with Bryant goes back more than a decade. 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. Pender brings 30 years of political and government reporting experience to Mississippi Today. <> Attorneys for Nancy and Zach New did not respond to a request for comment from ABC News. The guilty plea was recorded in Judge J. Kelley Luthers courtroom. Jackson, MS 39205-0956 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. . His father and grandfather were oilfield pumpers, and his mother and grandmother were public school teachers. Continue Reading, P.O. Pharmacy benefit managers, or PBMs, are third-party groups that negotiate drug prices with pharmaceutical companies and drug stores. Its unclear where any continuing federal or state investigations stand at this point. William Winter is the very last person who would ever do anything like that, but if I had come across evidence, I would have removed myself. You cant edit our stories, except to reflect relative changes in time, location and editorial style. But shortly after the arrests, White said that then-Gov. 2 0 obj We believe the taxpayers of Mississippi deserve no less., By joining our newsletter, you are confirming that you agree with the Privacy Policy. stream As for the amount charged for billable hours, Banks said if there was an amount charged that was not approved in the councils order, it does need to be changed. In June, the state announced it reached a $55.5 million settlement with Centene, its largest Medicaid contractor,following a yearslong investigation into whether the company overcharged Medicaidfor prescription drugs. 5 0 obj DpTJ In his time as State Auditor, Shad Whites team has stopped the largest public fraud in state history, made the The NAACP's Johnson said in his letter, "these apparent crimes were ignored by DOJ under your predecessor Attorney General, and we are calling on you to take action that is long overdue. That wasnt a part of the thinking or the conversation., Lumumba told members the auditor later raised questions about the citys legal expenses, but the investigation was not initiated by his office. He was political and investigative editor at the Clarion Ledger, where he also penned a popular political column. "We are still early in our investigation," said Colby . 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. They show the two men telling Bryant the company had received public funds, and that the governor intended to make his own business deal with Prevacus after he left office. Turn on desktop notifications for breaking stories about interest? read more On Thursday, the Mississippi Office of the State Auditor (OSA) announced last months return of $63,660.90 to public coffers. Some have agreed to, some have not. Shad went on to earn degrees from the University of Mississippi, Box 1699 Jackson, MS 39215-1699. And when those facts are looming out there, youve got to back off and ask will my involvement jeopardize the integrity of the investigation I think (White) is a man of high integrity, but you asked me personally what I would do and thats it.. In 2009 he was sentenced to two years in federal prison for his role in a judicial bribery case. Internships White at the time said that his office moved swiftly and without notifying or involving federal authorities so as to halt the scheme before any more money was misspent or stolen. <> largest civil recovery after an auditors investigation in the history of the office, and concluded cases that, collectively, led to hundreds It was valuable work that helped us resolve a potential stop of picking up of garbage.. White as auditor has burnished a reputation as a hard-charging defender of state tax dollars, and was credited with unmasking a massive scheme in the 2019 welfare scandal. Editorial cartoons and photo essays are not included under the Creative Commons license and therefore do not have the "Republish This Story" button option. Just as in the forensic audit you saw the auditors reached out to a number of people. Jefferson and Neal were both arrested in June 2019. Mr. Piggot will be focused on the evidentiary elements related to the case. The charges are one count of embezzlement, three counts of false representations to defraud the government, and one count of alteration of records. (AP Photo/Rogelio V. Solis). He noted that "funds from these programs are to be used for the neediest and most vulnerable in our society.". State Rep. Chris Bell (D) will serve as the new MLBC Chair as Sen. Angela Turner-Ford (D) chose not to seek the post for another term. Please click here to report it and include the headline of the story in your email. It would potentially be approving an unauthorized expenditure, said Williamson. 10 0 obj (WLBT) - More details are emerging about the state auditors investigation into the Jackson City Councils legal expenses, as are accusations about what sparked the states inquiry. JACKSON, Miss. From big cases to small cases, we fight for the taxpayers every month., Last month @MSStateAuditor @ShadWhite's office returned $63,660.90 back to taxpayers. This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License. White's office helped lead the investigation into Mississippi's $77 million welfare fraud scandal, . 24/7 coverage of breaking news and live events. "It doesn't look good." Former Gov. These exceptions involved miscellaneous, disallowed expenditures by chancery clerks and circuit clerks and are recorded as paid in full and settled to the appropriate fund directly.'. Founded in 2016 as the states first nonprofit, nonpartisan newsroom, Mississippi Todays roots in Capitol coverage have grown to encompass a myriad of beats beyond politics and policy, including education, public health, justice, environment, equity, and, yes, sports. 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 . Photo by Kayode Crown . by Geoff Pender and Anna Wolfe, Mississippi Today May 12, 2022, This and is republished here under a Creative Commons license.. In 2019, State Auditor Shad White launched an investigation into the PBM serving the states Medicaid program. You can only publish select stories individually not as a collection. We prefer Author Name, Mississippi Today in the byline. A 2020 investigation by The Marshall Project exposed how prison operator MTC billed the state millions for ghost workers. When asked for comment about this alleged fraud, a Mississippi Division of Medicaid spokesperson said it was the divisions own investigators who originally caught the fraud. We center readers in everything we do, informingand engagingMississippians through reporting, podcasts, events and online communities. Suspected fraud can be reported to the Auditors office online at any time by clicking the red button at www.osa.ms.gov or via telephone during normal business hours at 1-(800)-321-1275. The attention was drawn from them to the city, he said. $10 million has been recovered from hundreds of other investigations.. This is the entry-level of professional program auditor work. ", Johnson urged "in the strongest possible terms to take immediate action to investigate and prosecute those involved in this massive theft of federal funds.". 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. That investigation, revealed Thursday, details 18 separate instances where leadership within MDOC engaged in "widespread fraud, waste and abuse." State Auditor Shad White said former MDOC Commissioner Pelicia Hall was responsible for mishandling most of those taxpayer dollars, particularly for authorizing all employees with comp time to be . 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. Phone: 601.576.2800 He later added, "when you read this one-hundred-plus page audit, you will see that, if there was a way to misspend money, it seems DHS leadership or their grantees thought of it and tried it. - Today State Auditor Shad White announced former Hancock County Coroner James Faulk has been indicted on multiple charges. Phil Bryant, Phil Bryant had his sights on a payout as welfare funds flowed to Brett Favre, Creative Commons Attribution-NoDerivatives 4.0 International License, Proudly powered by Newspack by Automattic. Asked about this, the auditor's office confirmed it was indeed investigating the matter on behalf of taxpayers. Reveal contacts of top Mississippi Office of the State Auditor managers and employees. 11 0 obj The monies are a result of instances such as bond repayments or a judges decision on restitutions. State of Mississippi Jacksons contract with Richards expired on March 31. 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. The Mississippi State Auditor's Office is looking intowhether UnitedHealth Group, the fifth largest company in the U.S., is over-billing Medicaid for prescription drugs. Updated: Jul 27, 2021 / 01:43 PM CDT. Her background in political science helps her cut through the noise to find and explain the truth. Phil Bryant's appointed welfare director in 2020 within a sprawling fraud scheme, state and federal investigators and prosecutors have failed to publicly scrutinize the governor's role which is palpable in written communication they've possessed for more than two years. As part of these agreements, the price of prescription drugs are capped. In this May 4, 2020, file photo, Mississippi State Auditor Shad White speaks during a news conference in Jackson, Miss. 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. The council and Mayor Chokwe Antar Lumumba have spent hundreds of thousands of dollars since 2021 on attorneys fees over the citys garbage collections. 7 0 obj As a result of this investigation, a settlement was reached in the amount of $55.5 Million. Indictment. Continue Reading, JACKSON, Miss. Management & Training Corporation failed to meet staffing obligations, putting staff and inmates at risk. Legislative Update the State Auditor in Jackson or to the public body. Mississippi state auditor says state's DHS wasted tens of millions of grant money . endobj Shad White, the Mississippi state auditor, right, and Hinds County District Attorney Jody Owens discuss the auditor's office investigation about millions in federal money meant for the poor, in . endobj - 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. You get those complaints that come in, and its what did you know and when did you know it. Those connections have helped cast doubt over the independence and rigor of the state welfare investigation led by White. Attorney Lawrence Deas confirmed to the Clarion Ledger Monday morning his firm is still investigating. This is one of the larger demands weve issued in my time in office. The rule that I lived by was if there is any question whatsoever, dont do it, said Pete Johnson, who served as state auditor from 1988-1992, and ran unsuccessfully for governor, losing to Kirk Fordice in the Republican primary in 1991. 1 0 obj Richards filed its first complaint against the mayor and council last summer for failing to pay the company for trash collection services. 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. 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. Published: Apr. Ray Mabus served as state auditor from 1984 to 1988. One of the recipients of almost $1.1 million in welfare funds was former Green Bay Packers quarterback Brett Favre, who lives in Mississippi. But Bryants responsibility in directly supervising his welfare department director and the fact that some of the taxpayer money flowed to people and programs favored by the former governor are notably missing from his extensive audit report. She also received first place in the regional Green Eyeshade Awards in 2021 for Public Service in Online Journalism and 2020 for Business Reporting, and the local Bill Minor Prize for Investigative Journalism in 2019 and 2018 for reporting on unfair medical billing practices and hunger in the Mississippi Delta. 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. White and his office identified the misspending and possible theft of tens of millions of dollars in federal money meant to help the states poor. %PDF-1.5 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. But in an October 2021 interview with Mississippi Today before the judge strengthened thegag order in the case to further restrict White the auditor said he had not seen instances of Bryant directing his welfare chief to spend federal money on specific programs. Phil Bryant on Tuesday, July 17, 2018, moments following his being sworn in to office at the Capitol. With 176,000 Mississippians without healthcare, the state has chosen not to expand Medicaid. manager, for charging Medicaid more than the allowed price cap. 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. He also serves in the military as a captain in the Mississippi National Guard. The total amount of disallowed expenditures, he says, was $7,764.50, for which no payments have been received. March 23, 2023 JACKSON, Miss. 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. The charges are one count of embezzlement, three counts of false representations to defraud the government, and one count of alteration of records. Phil Bryant. (WLBT) Mississippi Department of Human Services Executive Director Bob Anderson says though the State Auditor issued civil demands to eleven individuals and groups earlier this week, the agency will continue working with former U.S. Attorney Brad Piggot on the criminal investigation. Independent pharmacies across the state are pushing back at what they call unfair practices when it comes to PBM reimbursement.. Davis has pleaded not guilty, court records show. 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. Internships It is ultimately going to be the discretion of the feds to determine who is culpable in this case.. Bryant appointed White as state auditor, a job that has been a launching pad for runs to higher office, and supported him in his subsequent election. (AP Photo/Rogelio V. Solis, File - Copyright 2020 The Associated Press. Centene also received two contract extensions. endobj [ @5 Y02YUU (s %I ea ) }Pr"aTH6 xRN Ole Miss shows they have some fight left in them. Jackson, MS 39205-0956 % (601) 321-6000 Email Website Facebook Twitter. The state's settlement with Centene provides a glimpse of what the UnitedHealth probe may center on. Brett Favre to remain defendant in Mississippi welfare case, judge rules. White said the recovery funds also involved inappropriate salary increases approved by some boards of supervisors as well as election commissioners being paid for more days than allowed. No further arrests have been made since Whites office initially arrested six people in February of 2020 Bryants head of DHS and another agency employee, former pro wrestler Brett DiBiase, a nonprofit and private school owner and her son and an accountant that worked for them. The state auditor and Mississippi attorney general are investigating whether Centene Corp., as a provider of Medicaid drug services, failed to disclose discounts on pharmacy services . Thats why it was pulled.. The spotlight on White has grown more intense in the wake of Mississippi Todays The Backchannel investigation, which showed Bryant using private texts to influence his welfare director and try to broker a deal with a pharmaceutical startup that enticed him with stock in the company. I dont vote on claims for several reasons, he said. Perhaps you can help explain their interest level at this time.. Civil demands issued by the State Auditor include Davis and NFL Hall of Fame quarterback Brett Favre. At the center of the state's UnitedHealth probe is OptumRX, a UnitedHealth subsidiary that manages prescription drug plans. Published in April 2022, the explosive investigation exposed corruption in Mississippi's dysfunctional welfare system, which deprived the poorest US state of millions of federal dollars that was intended to address widespread poverty. He has also named Debi Cox as the new Deputy Director of Investigations for the Mississippi Office of the State Auditor. The text messages between Bryant, the owner of Prevacus and retired NFL star Brett Favre have been in the possession of the auditors office for more than two years. The council did not immediately approve a new contract with the company and residents were left without pickups for approximately two weeks. 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. Especially if I wasnt going to take strong action on it, I would turn it over to somebody else.. But you need to know that you have advocates who are standing up for you, and this is not going to be allowed and it's stopping right now.". Deputy Director, Criminal Investigations Division: Mississippi, USA bxxxxxd@osa.ms.gov: Fletcher Freeman: Deputy Director Of Communications: Mississippi, USA . 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. Faulk has also been issued a demand letter totaling $22,031.26. pic.twitter.com/rDuj6yHTo6. Attorney Felicia Perkins confirmed during the April 17 hearing that the memo referenced in the court filings was the document being submitted. Mabus said that given Whites ties to Bryant, he should have handed off his lead role in investigating to someone else. 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. Prior to making that move, she interned for a congressional office in Washington, D.C. and a multi-state government relations and public affairs firm in Jackson, Mississippi. Bryants appointment of his former campaign manager and policy director White as state auditor in 2018 was something of a surprise to most political observers. (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. 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. 1:58. 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. 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. By clicking submit, you agree to share your email address with Mississippi Today. 2rT/5}d+|D @kRO\AZhwdxd;!bfxkt74Pk]*J90y[nbf"cy The company reported over $257 billion in revenue last year. State Auditor Shad White has named Larry Ware as the new Director of Investigations. endobj Attorneys fees pulled from Jackson claims docket due to auditors 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. Johnson said under similar circumstances, if he had such connections to someone potentially involved, he would have recused himself or limited his role in the investigation. Geoff Pender serves as senior political reporter, working closely with Mississippi Today leadership on editorial strategy and investigations. Although its billing practices have been under investigation since 2019, the State Division of Medicaid has extended its contract with UnitedHealth twice since then. 2023 www.clarionledger.com. NAACP CEO Derrick Johnson speaks onstage during the 53rd NAACP Image Awards Colors Behind the Look: a Celebration of Fashion, Costume Design and Glam Event in Los Angeles, Feb. 25, 2022. Anne McGrew, an accountant for the MCEC, pleaded guilty in October 2021 to one charge of conspiracy to commit embezzlement. Transparency Contact information for Smith was not immediately available. B|?uo. 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. Mississippi has contracted with UnitedHealth, under the name UnitedHealthcare of Mississippi, for Medicaid and Children's Health Insurance Program, or CHIP, benefitssince 2017. Today State Auditor Shad White announced Stephanie Churchill has pleaded guilty to embezzlement in Benton County Circuit Court. endobj Today Shad, his wife Rina and their children live in Rankin County and are faithful members at St. Richard Church. Our investigators have proven we will take on the biggest cases down to the smallest to protect taxpayer dollars, said Auditor White. Knowing what we know now, clearly he should have recused himself and should be recusing himself now.. Auditors were able to find the fraud by examining the beneficiaries state income tax returns and comparing them to the income listed on their applications, according to the report. In a statement about the DHS lawsuit White said: We will continue to work alongside our federal partners who have been given access to all our evidence for more than two years to make sure the case is fully investigated.. Phil Bryant have helped cast doubt over the independence and rigor of the state welfare investigation led by White. Even small instances of noncompliance, youre talking about potentially big savings, White said. Fax: 601.576.2687 . Republish our articles for free, online or in print, under a Creative Commons license. Richards filed its first complaint against the mayor and council last summer for failing to pay the company for trash collection services. Council President Ashby Foote disagreed with the decision to pull the item, saying the city needs to pay its bills. White has pointed to slow action by federal authorities as justification for his agency investigating and making the arrests. An investigation into whether UnitedHealth is also wrongly charging the state's Medicaid program for prescription drugs is ongoing. 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. The MCEC did not reply to a request for comment from ABC News. <>>> Meanwhile, USM must find some. Phil Bryant. In 2021 an investigation into PBMS resulted in a $55 million settlement, OSA said. But some holes in the audit have since emerged, especially relating to Bryants involvement behind the scenes. 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. JACKSON, Miss. A bill for an act relating to state government; designating the state fire museum; changing provisions in state government operations; modifying enabling statutes for the Legislative Commission on Cybersecurity; modifying provisions related to the Office of the Legislative Auditor and the Legislative Audit Commission; authorizing forms of collateral for state deposits; modifying procedures for .