State auditor to brief FBI on embezzlement scheme, calling on legislature for full audit into DHS

JACKSON, Miss. (WLBT) - State Auditor Shad White is paying a visit to the FBI to brief them on what’s been uncovered as the largest public embezzlement scheme in Mississippi history.

He released the following statement on Facebook detailing the next steps in the investigation.

“Tomorrow morning I am heading to FBI offices where my agents and I will brief them on the DHS scheme and make all the evidence we have gathered available.

We moved quickly and quietly in the Auditor’s office to put a stop to the DHS scheme before any more money was taken, and now is the time to use every investigative resource available to uncover all the fraud that remains.

I am also calling on the Legislature to immediately require a full forensic audit of DHS by a competent private CPA firm. My office cannot do an audit of that magnitude any time soon and still handle our normal duties. This is the only way we will be able to know how every dollar was spent in the programs that were abused.”

This past week, six people were arrested in connection with a multi-million-dollar embezzlement scheme.

Two of those people are John Davis, the former Director of the Mississippi Department of Human Services and Nancy New owner and Director of the Mississippi Community Education Center (MCEC) and New Learning, Inc.

The six are accused of transferring millions in TANF funds meant for the needy to their private businesses.

Auditor White said that more than $4 million was taken from Mississippi taxpayers.