In one of the largest public corruption cases in state history, the former head of the Mississippi Department of Human Services pleaded guilty to doling out millions of dollars in welfare funds.
John Davis was the director of the Mississippi Department of Human Services.
Director John Davis pleaded guilty to conspiracy to commit wire fraud and theft after the Department of Justice said he and his co-conspirators "fraudulently obtained and used federal funds for their personal use and benefit."
According to prosecutors, the state Department of Human Services gave federal funds to two non-profits and pushed them to sign sham contracts with other entities and individuals.
The state criminal charges against Davis were dropped on the condition that he plead guilty to federal charges and testify against others.
According to the DOJ, Davis was involved in a conspiracy with four other people, two of whom are executive directors of organizations and one of whom is the owner of two companies.
There will be a sentencing on February 2. There is a maximum penalty of 5 years for the wire fraud charge and 10 years for the theft charge.
The head of one of the non-profits that received federal money, Nancy New, was charged along with Davis in state court. New and her son have entered guilty pleas. The state of Mississippi sued several people for their alleged ties to the scandal, claiming they "squandered" over $20 million in welfare funds for needy families. New is said to have asked for millions of dollars in welfare funds to build a volleyball court for her daughter at the University of Southern Mississippi. The text messages were published by Mississippi Today. New and Bryant were offered shares of the company in exchange for their help in promoting Families First, and a pharmaceutical company that he invested in was given millions of dollars for welfare programs. He will repay the fees he received for promoting Families First in 2020 because he didn't know the money was from welfare funds. According to the Mississippi lawsuit, the wrestler was given money for first class travel, a luxury rehab stay for one of his sons, and other misuses.
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